Public sector organizations are navigating increasingly complex security challenges, evolving technology needs, and the imperative to modernize for an AI-driven future. To support these priorities, Microsoft is expanding availability of security, management, and AI features to a wider range of Microsoft 365 Government offerings in 2026. We will also update our pricing for Microsoft 365 Government suite subscriptions effective July 1, 2026. In accordance with local regulations, this price change will roll out in a phased manner. We're sharing these updates now to give customers ample time to plan.
Continued progress for Government suites
Meeting the evolving needs of government agencies means continuously delivering the latest advancements while maintaining the highest standards of security and compliance. To help public sector organizations stay ahead of emerging threats and regulatory demands, we're enhancing our Microsoft 365 Government offerings with additional security and management capabilities empowered by AI.
Bringing the power of AI to everyone in your organization. We brought Microsoft 365 Copilot Chat to GCC, GCC-High, and DoD (Department of Defense) and recently expanded web-grounded Copilot Chat to Word, PowerPoint, and OneNote1. Copilot Chat’s context-aware intelligence understands your open document, enabling you to summarize, draft, and refine content without switching between apps. At Ignite, we announced that Copilot Chat will include access to Agent Mode in chat, Word, Excel, and PowerPoint to help you create and edit files by describing what you need. IT administrators now have integrated controls to secure, manage, and measure Copilot Chat.
Strengthening protection against advanced threats across email and Microsoft Teams. We’re adding the enhanced email security features of Microsoft Defender for Office Plan 1 to Office 365 G3/E3 and Microsoft 365 G3 to help more organizations detect and protect against phishing, malware, and malicious links across email and collaboration platforms. In addition, we are including URL checks in Office 365 G1/E1, which help protect against known malicious websites when users click on links in email and Office apps.
Empowering IT teams with integrated endpoint management. We are bringing additional endpoint management features to Microsoft 365 G3 and Microsoft 365 G5 by adding capabilities that empower IT to solve issues faster, preemptively detect exposures, and keep devices productive. These features include Intune Plan 2, Intune Advanced Analytics, and Intune Remote Help. For Microsoft 365 G5 customers, Intune Endpoint Privilege Management, Intune Enterprise Application Management, and Microsoft Cloud PKI will enable IT teams to safeguard AI productivity and strengthen security by mitigating risk, maintaining compliance, and delivering more secure user experiences.
Note: Every feature mentioned is expected to be available in at least one Government cloud environment within the listed Government suites rolling out throughout 2026. For features that do not yet meet inclusion requirements for specific environments, we are working to complete the necessary engineering, certification, and approval processes to ensure they adhere to strict regulatory standards. These features will be added to other environments within the listed Government suites over time as they pass validation and become eligible for inclusion.
Updated pricing
Alongside this expansion of features and capabilities, we are also making changes to our pricing, which will go into effect on July 1, 2026. At that time, we will update our list pricing for the following Microsoft 365 Government products: Microsoft 365 G3 (GCC, GCC-H, DoD), Microsoft 365 G5 (GCC, GCC-H, DoD), Office 365 G3 (GCC), and Office 365 E3 (GCC-H, DoD).
*In accordance with federal regulations, for suites with total increases exceeding 10%, the increase will be phased over multiple years, with no more than 10% applied annually until the full adjustment is complete.
Learn more about the updates coming to the commercial suites. Nonprofit pricing will be adjusted in line with commercial pricing, as it is tied to commercial rates through a fixed percentage discount.
Our ongoing commitment to Government innovation
Our dedication to Microsoft 365 Government goes beyond individual feature releases. We are focused on delivering the latest commercial capabilities to the public sector, anchored in the compliance and security certifications essential for government workloads.
Through landmark initiatives like the OneGov offer, we’re accelerating the digitization of federal workloads and delivering unified access to advanced productivity, cloud, and AI services at significant cost savings. Within the last year, we’ve expanded Microsoft 365 Copilot to GCC, GCC-High, and DoD to enable agencies to harness secure generative AI for their most critical missions. Over the past four years, we’ve also brought advanced commercial grade security features, like integration of threat intelligence, to government clouds. This ensures agencies can confidently modernize while meeting the highest standards for compliance and certification.
Looking ahead
Microsoft remains dedicated to supporting government agencies with secure, compliant, and innovative solutions. We appreciate your continued trust and partnership as we work together to unlock new possibilities for public service.
1 - Off by default for Government environments.
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