Google is offering a 71% discount on its business apps package to US federal agencies as part of a new agreement with the General Services Administration (GSA).

The move is aimed at capitalising on President Trump's cost-cutting efforts, which include reducing government contracts. If fully adopted by federal agencies, the deal could save up to$2 billion.

The pricing structure will now be based on government-wide usage, rather than the individual agency agreements that previously offered smaller discounts. The GSA views the agreement as part of its broader strategy to create cost savings for the federal government.

A shift like this could help Google expand its presence in the government sector, where Microsoft currently holds an 85% market share.

As part of its push, Google has enhanced its Workspace suite with AI-driven features from its Gemini model. The platform has already been used by some government entities, including the US Air Force's Air Force Research Laboratory, since 2021.

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