Microsoft has struck a strategic agreement with the U.S. General Services Administration (GSA) to accelerate AI adoption across federal agencies. Under the “OneGov” deal, federal entities can access a suite of Microsoft’s AI-powered tools—including Microsoft 365 Copilot—completely free for up to 12 months for eligible users. Additionally, agencies benefit from deep discounts or waived fees on cloud services like Azure, Dynamics 365, Sentinel, and security tools. Reuters
Expected Savings and Support
This unified pricing strategy is projected to deliver $3 billion in savings in the first year alone, with the total estimated value surpassing $6 billion over three years, considering implementation support and workshops offered by Microsoft.
Highlights of the Offer:
- Free Access to Microsoft 365 Copilot: Available to millions of existing federal G5 users for 12 months.
- Cut-Rate Cloud and Productivity Tools: Reduced pricing on Azure infrastructure, Dynamics 365, and core Office apps.
- Security Enhancements: Waived data transfer (egress) fees and access to tools such as Microsoft Sentinel and Entra ID.
- Implementation Support: $20 million in assistance and optimization workshops, aimed at streamlining adoption and reducing software redundancy.
Federal agencies have the flexibility to opt in to any or all components of the offer through September 2026.
Why This Matters
- Speeding AI Integration — Free access to Copilot and discounts will enable federal workers to automate workflows, analyze data, and strengthen collaboration seamlessly.
- Operational Efficiency — Modernizing cloud infrastructure and security platforms while cutting costs provides agility and enhanced mission readiness.
- Strategic Alignment — Aligns with America’s AI Action Plan and supports the federal government’s broader modernisation goals for security, productivity, and innovation.
