Oracle was already on the FedRAMP list I think. AFAIK this is about getting smaller cloud providers approved to host government projects so there’s more options available.
Normally this can take a lot of time and monetary investment. On one hand, these processes encode cybersecurity best practices. On another hand, it keeps new companies out of the market.
It seems this effort is doing away with a lot of those processes. I hope the level of compliance stays the same.
Edit: Another comments actually replied it is much more than hosting but cloud services like BOX. I assume even SaaS could fall into this category.