Google has struck a landmark deal with the U.S. government to provide Gemini AI to federal agencies for just $0.47 per agency. Announced by the General Services Administration (GSA), the “Gemini for Government” program will run through 2026, marking one of the most aggressive pricing strategies yet in enterprise AI.

The suite includes NotebookLM, Veo-powered video and image generation, enterprise search capabilities, and pre-configured AI agents. Agencies will also have the option to design their own custom agents to automate workflows. The agreement expands Google’s presence in government, where Workspace is already offered at a 71% discount.

The initiative is tied to Trump’s AI Action Plan, designed to modernize government operations on a large scale. Google CEO Sundar Pichai said Gemini delivers a “full stack” of innovation, while GSA officials underscored the flexibility of the procurement framework.

Security remains a priority. Google Cloud holds FedRAMP High approval, and the program includes features for identity management, compliance, and threat protection.

Some analysts, however, question whether the $0.47 pricing model is sustainable, suggesting it may be a loss-leader move to increase agency reliance on Google’s platforms. Risks include over-dependence on a single provider, vague implementation timelines, and lack of clear performance metrics.

While billed as a milestone for AI-driven efficiency, the program’s true test will be whether it brings lasting modernization or exposes agencies to future cost burdens when pricing resets post-2026.