Google to Slash Cloud Prices for U.S. Government Amid Trump-Era Cost Cuts

Google (NASDAQ:GOOGL) is preparing to offer significant discounts on its cloud computing services to the U.S. government, aligning with a broader initiative by the Trump administration to slash federal tech spending, according to the Financial Times. The report cites a senior official from the General Services Administration (GSA), who noted that the deal could be finalized within weeks and is expected to mirror Oracle’s (NYSE:ORCL) recent agreement to cut prices by up to 75% on certain software and cloud contracts.

The push for lower pricing is part of a wider cost-efficiency drive spearheaded by the Department of Government Efficiency (DOGE), a newly established agency once headed by Elon Musk. DOGE aims to reduce over $20 billion in annual federal cloud expenditures by renegotiating long-term contracts with major technology providers.

In addition to Google, the GSA expects other major cloud players, including Microsoft (NASDAQ:MSFT) Azure and Amazon Web Services (NASDAQ:AMZN), to join negotiations, although talks with these firms are reportedly at earlier stages.

The federal government is also extending the cost-cutting initiative to other service sectors, including consulting and rideshare companies. The campaign comes as tech companies seek to improve their relationship with the Trump administration after previously strained ties during his first term.

The expected deal with Google marks a significant development in the administration's efforts to exert pricing pressure on the tech sector while reshaping how federal agencies procure cloud infrastructure. As competition intensifies and budget constraints rise, industry leaders appear increasingly willing to concede deep discounts to secure long-term government contracts.