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The new 27-month agreement with GSA takes effect Oct. 1 and extends discounted access to state, local, and tribal governments

Photo by Tomohiro Ohsumi / Getty Images

A pilot program through which federal agencies could use OpenAI's models for $1 per year is coming to an end, with the company shifting to consumption-based pricing that cuts costs for government users by half compared with commercial rates, the U.S. General Services Administration announced on Thursday.

The new 27-month agreement, structured through GSA's OneGov marketplace, is set to take effect Oct. 1, 2026. Under the deal, agencies pay only for tokens consumed, with no platform-access fee, no minimum orders, and no spending commitment, according to GSA. Access extends beyond the federal executive branch to cover legislative and judicial agencies, as well as state, local, and tribal governments.