Why ?
And it’s an internship - it’s not about prestige. It’s about building a resume, job duties, ability to get a job after. It’s not about prestige.
At this point, assuming the private job isn’t funded by the government, I’d take that. Even without the current govt stance, I still might after looking at duties.
I don’t see why a government internship would be more ‘prestigious’ simply because of who backs it.