California inks deal to offer Claude AI to state, local agencies

California has signed a contract with Anthropic that gives state agencies and local governments access to the company’s Claude AI assistant at a 50% discount. The agreement includes free workforce training and technical support from Anthropic developers.

State workers will access Claude through the California Department of Technology’s Statewide Information Technology Shared Services portal, which centralizes AI tools and lists pricing. The state plans to use Claude for routine administrative tasks such as drafting and summarizing documents, analyzing information and supporting day-to-day work.

Anthropic will provide technical assistance to help agencies integrate Claude into existing workflows and will deliver complimentary training for staff who use the tool. Extending the discounted access to cities and counties expands the program beyond typical state-only contracts.

Several agencies are already using Claude. The Department of Motor Vehicles deployed the assistant to improve customer service and reduce wait times. The Department of Healthcare Services used Claude to streamline internal workflows related to Medicaid operations. The Department of Technology and the Office of Emergency Services have applied the model to cybersecurity tasks, including scanning and patching state code.

State projects have included civic engagement and internal development work. Claude has powered Engaged California, a deliberative democracy platform, and supported the creation of Poppy, an internal AI tool built by state personnel. Officials said those deployments informed the broader agreement and served as pilot tests before a wider roll-out.

In a statement, Governor Gavin Newsom said, “This partnership is about using technology the California way: responsibly, transparently, and in service of people. AI should not replace the human work of government; it should help our workers move faster, solve problems more effectively, and deliver better results for Californians.”

The agreement follows an executive order issued last year that directed state agencies to identify efficiency measures. State technology leaders said Claude will be the first AI productivity tool made available universally through the shared services portal, intended to provide a consistent procurement path and reduce duplicative contracts.

Officials said the contract’s training and technical assistance provisions are meant to help agencies manage risks and integrate the tool into existing systems.