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New bill would tax US firms 25% for outsourcing work abroad

In committeeS. 2976Latest action

Sponsor: Bernie Moreno · Senator · OH

AIDecoded by AI · checked against the record
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Official title: HIRE Act

119th Congress

Topics: Jobs & the economy

Introduced:

Read the official bill on Congress.gov

In plain words

The plain-language version comes first. The official text is always the reference.

The HIRE Act would impose a 25% federal tax on U.S. businesses paying foreign workers for services benefiting American customers.

55-second read · 5 questions answered below

What does this do?

The HIRE Act would create a 25% federal excise tax on U.S. businesses that pay foreign workers or companies to perform services for American customers, such as call centers or data processing. If services serve both U.S. and foreign customers, only the U.S.-facing portion is taxed. Businesses also could no longer deduct these outsourcing payments from their income taxes, meaning the cost is taxed twice.

Who does it affect?

U.S. companies that outsource customer service, tech support, or other labor overseas would be directly affected, along with foreign workers performing that outsourced work. American workers in competing domestic industries and consumers who might see higher prices could also be affected.

Why does it matter?

The tax would raise costs for businesses that outsource labor abroad, potentially encouraging them to hire domestically instead, and could lead to higher prices passed on to consumers.

What does it cost, and who pays?

  • 25% excise tax on outsourcing payments
  • funds job training via new fund
  • higher penalties for non-payment

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Read the official bill on Congress.gov

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Where does it stand?

  1. IntroducedOct 6, 2025
  2. Senate committeeYou are here · Oct 6, 2025
  3. Senate vote
  4. House
  5. The president's desk

Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.

Latest action: — Read twice and referred to the Committee on Finance.

Data as of October 9, 2026
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