U.S. agencies to receive 50% discount on ChatGPT model usage starting October 1

OpenAI announced a 50% consumption-based discount on ChatGPT model usage for U.S. government agencies, effective October 1, 2026. The discount is part of a new OneGov agreement with the General Services Administration (GSA), replacing a prior annual $1-per-agency fee that expires on September 30.

The new pricing model includes free platform access and applies to token-based usage of ChatGPT models. OpenAI stated the deal aims to provide broader access to AI tools for federal, state, local, and tribal governments while delivering what it describes as a favorable arrangement for taxpayers.

Sam Altman, OpenAI CEO, urged federal officials to accelerate AI adoption during a Washington, D.C. event, arguing that familiarity with the technology will enable better decision-making in response to future challenges. Officials from more than two dozen cabinet agencies and federal entities attended the event, according to an OpenAI spokesperson.

The Office of Personnel Management (OPM) indicated continued support for deploying AI tools, including ChatGPT, in a recent statement. OPM’s chief information officer described the new OneGov agreement as delivering "some of the best AI deals in the world" and emphasized investment in an AI-ready workforce.

Procurement experts have raised concerns that agencies may face higher costs under the new consumption-based model, particularly as employees expect continued access to ChatGPT tools. The prior flat-fee agreement had been criticized for limiting broader adoption due to budget constraints.