The U.S. federal government has signed a deal with Google to roll out Gemini AI across federal agencies at the symbolic cost of $0.47 per agency. The General Services Administration (GSA) announced the “Gemini for Government” program, which will run through 2026 and is described as one of the most aggressive AI pricing schemes in the enterprise sector.

The package includes NotebookLM, Veo-powered tools for video and image generation, enterprise search, and pre-configured AI agents. Agencies will also have the option to build their own custom agents for workflow automation. The deal builds on Google’s existing role as a provider of Workspace to the federal government, already offered at a steep 71% discount.

Framed as part of Trump’s AI Action Plan, the initiative seeks to modernize public operations on a broad scale. Sundar Pichai, Google’s CEO, described Gemini as a “full stack” AI offering, while GSA leaders highlighted the flexibility of procurement.

Security is a core element: Google Cloud already holds FedRAMP High certification, with the package covering compliance, threat protection, and identity management.

Industry analysts, however, have raised doubts about the sustainability of the $0.47 price point, warning it could represent a loss-leader tactic to deepen reliance on Google’s ecosystem. They point to risks including vendor lock-in, uncertain rollout schedules, and unclear performance benchmarks.

The program is seen as a potential milestone for AI in government, but its long-term success will depend on whether it delivers lasting efficiency—or exposes agencies to cost hikes once the current deal expires.