Millions of U.S. federal employees will soon gain free access to Microsoft’s Copilot AI under a landmark agreement with the General Services Administration (GSA). The deal offers one year of Microsoft 365 Copilot at no cost to agencies using the secure G5 licence. Officials project taxpayer savings of $3.1 billion in the first year and more than $6 billion over three years.
The initiative aligns with the government’s AI Action Plan, which seeks to modernize operations, automate routine tasks, and enhance citizen services. The package also includes significant Azure discounts and the removal of data transfer fees, making it easier for agencies to upgrade technology and collaborate securely.
Security remains a central focus. Microsoft’s cloud and AI platforms already hold FedRAMP High authorisation, while Copilot is awaiting final certification, having secured provisional clearance from the Department of Defense. Additional tools such as Microsoft Sentinel and Entra ID bolster the federal “zero trust” security framework.
To drive adoption, Microsoft is committing $20 million toward training and support workshops. GSA leaders described the agreement as a “paradigm shift” in federal procurement. Microsoft CEO Satya Nadella said the partnership will cut costs, strengthen security, and transform daily work for millions of government employees.
