GPL is discouraged in government software (speaking from DOE/NSF experience) but BSD or similar is encouraged. The path of least resistance is private/closed source, followed by open source BSD/MIT/Apache, followed by GPL/LGPL, followed by commercialization.
The reason why there is a bit of resistance with open source as a default is because funding has to be traced.
The reason why there is a bit of resistance with open source as a default is because funding has to be traced.