The Abraham Lincoln biopic will be directed by Spielberg, who took home the Oscar for both "Schindler's List" and "Saving Private Ryan," and features a screenplay by Kushner, who won the Pulitzer Prize for Drama in 1993 for Angels in America.
According to Dreamworks, the film "will focus on the political collision of Lincoln and the powerful men of his cabinet on the road to abolition and the end of the Civil War."
Pace has signed on to play New York City mayor Fernando Wood, a prominent early supporter of the Confederate cause who traded frequent correspondence with President Lincoln.
David Strathairn (The Three Sisters, Dance of Death) is also among the cast for "Lincoln" and will play William Seward, who served as Lincoln's Secretary of State.
Filming will begin this fall in Virginia. Kathleen Kennedy and Spielberg produce the film that is aiming to arrive in theatres in late 2012.