In similar veins to the following two recent Reddit posts, I'm posting here because it appears they gained traction with Microsoft and ultimately reached someone who could help. I'm hoping someone from Microsoft or someone who has experienced this exact issue will see this.
https://www.reddit.com/r/sysadmin/comments/1vfbvvs/our_entire_m365_tenant_has_been_deauthenticated/
https://www.reddit.com/r/sysadmin/comments/1w1qc0i/microsoft_strikes_again_entire_m365_tenant_has/
Our tenant has not been deauthenticated, but it has effectively been rendered unusable. This tenant has been active since: 5/28/2013, so it's not a new tenant.
This is a frontline nonprofit social safety net organization providing food assistance, healthcare access, emergency financial assistance, and other critical services. This outage is impacting real people with urgent needs, including eviction prevention, time-sensitive clinic appointments, and emergency assistance cases. Email, SharePoint, and OneDrive are core operational systems for this organization.
We currently have open cases with:
- Microsoft Technical Support
- Microsoft Billing Support
- Microsoft Nonprofit Support
So far we remain stuck at Tier 1 support. The representatives have been professional and are trying to help, but nobody we've reached has had the authority or access needed to resolve the issue.
9/3/2026
Users began reporting that they could not send or receive external email.
Internal email continued to work.
Microsoft had ongoing Exchange Online incidents at the time (EX1464935 and later EX1467029), so initially we believed it might be related.
9/4/2026
Users could still successfully authenticate through Microsoft 365 and SSO.
However, attempting to launch services such as:
- Outlook Online
- SharePoint
- OneDrive
- Other Microsoft 365 workloads
results in errors.
Any inbound email sent to the tenant bounces back after approximately 24 hours.
The error when trying to access Outlook:
Microsoft.Exchange.Data.Storage.TenantAccessBlockedException
Additional error details:
Client Version: 20260821009.11
BootResult: configuration
Back Filled Errors:
Unhandled Rejection: Error: 500:undefined
Unhandled Rejection: SyntaxError: JSON.parse: unexpected character at line 2 column 1 of the JSON data
err: Microsoft.Exchange.Data.Storage.TenantAccessBlockedException
esrc: StartupData
et: ServerError
st: 500
ehk: X-OWA-Error
ewsver: 15.21.382.9
9/5/2026
One Microsoft manager responded to an escalation email and reviewed the issue with us via remote session.
Screenshots and information were provided.
We were told an escalation attempt would be made.
I sincerely appreciate that effort, but as of today the tenant remains inaccessible.
---
While troubleshooting, we discovered that the organization's Microsoft Customer Agreement (MCA) billing account shows:
Status: Under Review
All billing profiles underneath the MCA also show:
Under Review
The billing portal displays:
Your account is under review. We're checking to make sure we can offer you Microsoft products and services.
The confusing part is that Microsoft also states:
This review won't affect your current services.
Unfortunately, that is not what we are experiencing.
------
Every subscription in the tenant appears to have been marked as Disabled on 8/31/2026.
Examples include:
- Microsoft 365 Business Premium (Nonprofit Staff Pricing)
- Office 365 E3 (Nonprofit Pricing)
- Microsoft Teams Premium (Nonprofit Pricing)
All show:
Status: Disabled
Effective Date: 8/31/2026
The licenses still exist.
They are still assigned.
However, they are disabled and cannot be re-enabled.
As a result:
- User access is broken
- Exchange Online is inaccessible
- SharePoint is inaccessible
- OneDrive is inaccessible
- Email delivery has stopped
- Data is being reported as pending deletion because there are no active licenses
------
The tenant is fully paid.
There are no outstanding invoices.
There have never been any payment issues.
The MCA account contains the organization's EIN
We attempted to:
- Add a new payment method
- Add a new billing profile
- Purchase replacement licenses
- Purchase commercial licenses
All attempts are blocked.
The portal returns:
We can't authorize your billing account right now.
Actions will be blocked during this time.
Check back later.
Additional Information
We also see notifications regarding:
- Account Under Review
- Email Verification Required
However, all relevant controls are greyed out and cannot be modified.
------
At this point, the evidence suggests this is not:
- A payment issue
- A license assignment issue
- A DNS issue
- An authentication issue
- An Exchange configuration issue
The combination of:
TenantAccessBlockedException
- MCA Billing Account showing Under Review
- Every subscription becoming Disabled on the same date
- Users being unable to access any Microsoft 365 services
makes this appear to be a Microsoft-side account verification or tenant restriction issue.
If anyone has experienced this before, knows the correct Microsoft escalation path, or can help get this in front of the appropriate engineering or commerce team, I would be extremely grateful.
This organization provides critical services to vulnerable individuals and families, and every additional day of downtime has real-world consequences.
(Again, we have 3 tickets open, and I've attempted to reach out to Support at: 1-800-865-9408 (yesterday I did speak to someone from the Data Safety Team, they said they were unable to help but would transfer me to the Team that could do it but they were probably not available due to the weekend, no one answered after being on hold for just under 8 hours, I'm calling again this morning).
Thank you in advance.
(MFA and Conditional Access is on the tenant, we have Cloud [3rd Party] backups of the tenant, we have ITDR, there are no signs of compromise, this appears to be something that got flagged for review by Microsoft's back end and has put this non profit to a screeching halt).
Edit: Edited to add 2 messages that didn't show up once the post went live, and removing 2 bold words.