diff --git a/app/models.py b/app/models.py
index 2432d63105..d4655eae85 100644
--- a/app/models.py
+++ b/app/models.py
@@ -91,6 +91,7 @@
 SMS_STATUS_FORMATTED = {
     "failed": "Failed",
     "technical-failure": "Tech issue",
+    "technical-failure-billable": "Tech issue - billable",
     "temporary-failure": "Carrier issue",
     "permanent-failure": "No such number",
     "delivered": "Delivered",
@@ -1605,6 +1606,7 @@ def check_code(self, cde):
 NOTIFICATION_PENDING = "pending"
 NOTIFICATION_FAILED = "failed"
 NOTIFICATION_TECHNICAL_FAILURE = "technical-failure"
+NOTIFICATION_TECHNICAL_FAILURE_BILLABLE = "technical-failure-billable"
 NOTIFICATION_TEMPORARY_FAILURE = "temporary-failure"
 NOTIFICATION_PERMANENT_FAILURE = "permanent-failure"
 NOTIFICATION_PROVIDER_FAILURE = "provider-failure"
@@ -1616,6 +1618,7 @@ def check_code(self, cde):
 
 NOTIFICATION_STATUS_TYPES_FAILED = [
     NOTIFICATION_TECHNICAL_FAILURE,
+    NOTIFICATION_TECHNICAL_FAILURE_BILLABLE,
     NOTIFICATION_TEMPORARY_FAILURE,
     NOTIFICATION_PERMANENT_FAILURE,
     NOTIFICATION_PROVIDER_FAILURE,
@@ -1631,6 +1634,7 @@ def check_code(self, cde):
     NOTIFICATION_DELIVERED,
     NOTIFICATION_FAILED,
     NOTIFICATION_TECHNICAL_FAILURE,
+    NOTIFICATION_TECHNICAL_FAILURE_BILLABLE,
     NOTIFICATION_TEMPORARY_FAILURE,
     NOTIFICATION_PERMANENT_FAILURE,
     NOTIFICATION_RETURNED_LETTER,
@@ -1649,6 +1653,7 @@ def check_code(self, cde):
     NOTIFICATION_SENDING,
     NOTIFICATION_SENT,
     NOTIFICATION_DELIVERED,
+    NOTIFICATION_TECHNICAL_FAILURE_BILLABLE,
     NOTIFICATION_FAILED,
     NOTIFICATION_TEMPORARY_FAILURE,
     NOTIFICATION_PERMANENT_FAILURE,
@@ -1664,6 +1669,7 @@ def check_code(self, cde):
     NOTIFICATION_PENDING,
     NOTIFICATION_FAILED,
     NOTIFICATION_TECHNICAL_FAILURE,
+    NOTIFICATION_TECHNICAL_FAILURE_BILLABLE,
     NOTIFICATION_TEMPORARY_FAILURE,
     NOTIFICATION_PERMANENT_FAILURE,
     NOTIFICATION_PROVIDER_FAILURE,
diff --git a/migrations/versions/0505_add_tech_fail_billable.py b/migrations/versions/0505_add_tech_fail_billable.py
new file mode 100644
index 0000000000..e2fa59e999
--- /dev/null
+++ b/migrations/versions/0505_add_tech_fail_billable.py
@@ -0,0 +1,19 @@
+"""
+Revision ID: 0505_add_tech_fail_billable
+Revises: 0504_fix_template_link
+Create Date: 2026-02-23 00:00:00
+
+"""
+from alembic import op
+
+revision = "0505_add_tech_fail_billable"
+down_revision = "0504_fix_template_link"
+
+NOTIFICATION_TECHNICAL_FAILURE_BILLABLE = "technical-failure-billable"
+
+def upgrade():
+    op.execute("INSERT INTO notification_status_types (name) VALUES ('{}')".format(NOTIFICATION_TECHNICAL_FAILURE_BILLABLE))
+
+
+def downgrade():
+    op.execute("DELETE FROM notification_status_types where name = '{}'".format(NOTIFICATION_TECHNICAL_FAILURE_BILLABLE))
diff --git a/tests/app/dao/test_ft_billing_dao.py b/tests/app/dao/test_ft_billing_dao.py
index ed823971c1..16dee6ac0a 100644
--- a/tests/app/dao/test_ft_billing_dao.py
+++ b/tests/app/dao/test_ft_billing_dao.py
@@ -319,8 +319,8 @@ def test_fetch_billing_data_for_day_bills_correctly_for_status(notify_db_session
     sms_results = [x for x in results if x[2] == "sms"]
     email_results = [x for x in results if x[2] == "email"]
     letter_results = [x for x in results if x[2] == "letter"]
-    assert 7 == sms_results[0][7]
-    assert 7 == email_results[0][7]
+    assert 8 == sms_results[0][7]
+    assert 8 == email_results[0][7]
     assert 3 == letter_results[0][7]
 
 
diff --git a/tests/app/v2/notifications/test_get_notifications.py b/tests/app/v2/notifications/test_get_notifications.py
index cc51b41f50..11aa191564 100644
--- a/tests/app/v2/notifications/test_get_notifications.py
+++ b/tests/app/v2/notifications/test_get_notifications.py
@@ -464,7 +464,7 @@ def test_get_all_notifications_filter_by_status_invalid_status(client, sample_no
     assert len(json_response["errors"]) == 1
     assert (
         json_response["errors"][0]["message"] == "status elephant is not one of [cancelled, created, sending, "
-        "sent, delivered, pending, failed, technical-failure, temporary-failure, permanent-failure, provider-failure, "
+        "sent, delivered, pending, failed, technical-failure, technical-failure-billable, temporary-failure, permanent-failure, provider-failure, "
         "pending-virus-check, validation-failed, virus-scan-failed, returned-letter, "
         "pii-check-failed, accepted, received]"
     )
diff --git a/tests/app/v2/notifications/test_notification_schemas.py b/tests/app/v2/notifications/test_notification_schemas.py
index 45e7beb459..ba4e95e44b 100644
--- a/tests/app/v2/notifications/test_notification_schemas.py
+++ b/tests/app/v2/notifications/test_notification_schemas.py
@@ -46,7 +46,7 @@ def test_get_notifications_request_invalid_statuses(invalid_statuses, valid_stat
     partial_error_status = (
         "is not one of "
         "[cancelled, created, sending, sent, delivered, pending, failed, "
-        "technical-failure, temporary-failure, permanent-failure, provider-failure, pending-virus-check, "
+        "technical-failure, technical-failure-billable, temporary-failure, permanent-failure, provider-failure, pending-virus-check, "
         "validation-failed, virus-scan-failed, returned-letter, pii-check-failed, accepted, received]"
     )
 
@@ -103,7 +103,7 @@ def test_get_notifications_request_invalid_statuses_and_template_types():
     for invalid_status in ["elephant", "giraffe"]:
         assert (
             "status {} is not one of [cancelled, created, sending, sent, delivered, "
-            "pending, failed, technical-failure, temporary-failure, permanent-failure, provider-failure, "
+            "pending, failed, technical-failure, technical-failure-billable, temporary-failure, permanent-failure, provider-failure, "
             "pending-virus-check, validation-failed, virus-scan-failed, returned-letter, "
             "pii-check-failed, accepted, received]".format(invalid_status)
             in error_messages