United States 119th Congress Status: In Committee 1 R cosponsors

S 2976 — HIRE Act

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

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced October 06, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Prognosis

Stalled 16% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Halting International Relocation of Employment Act or the HIRE ActThis bill imposes a 25% federal excise tax on and disallows tax deductions related to payments made to foreign persons for labor or services benefiting consumers in the United States (outsourcing payments). The bill also provides funding for workforce development initiatives.Specifically, the excise tax applies to outsourcing payments, which the bill defines as any premium, fee, royalty, service charge, or other payment madein the course of a trade or business,to a foreign person (excluding a corporation or partnership organized under the laws of the United States or a U.S. possession), andfor labor or services which benefit (directly or indirectly) U.S. consumers.Further, a federal tax deduction is not allowed for outsourcing payments or the excise tax on such payments.Under the bill, the Internal Revenue Service may require persons to report information related to outsourcing payments. The bill imposes penalties for failing to report such information or pay the excise tax. The bill also establishes and provides funding for the Domestic Workforce Fund, which is to be used forworkforce development and retraining programs,apprenticeship programs and partnerships with industry to expand domestic employment in sectors impacted by outsourcing, and state grants for workforce development for communities with high levels of job displacement.The funding provided by the bill for the Domestic Workforce Fund is equivalent to the amounts received from the tax and penalties imposed by the bill.

Bill Text

How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes an excise tax on outsourcing payments made by U.S. taxpayers to foreign persons for services provided to U.S. consumers and creates a trust fund for workforce development programs.

  • Subtitle D of the Internal Revenue Code of 1986

    CHAPTER 50B--OUTSOURCING Sec. 5000E. Outsourcing payments. (a) Imposition of Tax.--There is hereby imposed a tax on any United States person making an outsourcing payment a tax equal to 25 percent of the amount of such payment.

    This addition creates a new chapter that imposes a 25% excise tax on payments made by U.S. persons to foreign entities for services directed at U.S. consumers.

  • Section 275(a)(6) of the Internal Revenue Code of 1986

    50A → 50B

    This change makes the excise tax on outsourcing payments non-deductible for tax purposes.

  • Section 6651(a) of the Internal Revenue Code

    not exceeding 25 percent in the aggregate → 50 percent

    This adjustment increases the penalty for failure to pay taxes imposed under the new Chapter 50B.

  • Subchapter A of chapter 98 of the Internal Revenue Code of 1986

    SEC. 9512. DOMESTIC WORKFORCE FUND. (a) Establishment.--There is established in the Treasury of the United States a trust fund to be known as the `Domestic Workforce Fund'...

    This establishes a trust fund to support workforce development programs funded by the new excise tax.

  • Part IX of subchapter B of chapter 1 of the Internal Revenue Code of 1986

    SEC. 280I. OUTSOURCING PAYMENTS. No deduction shall be allowed under this chapter for any outsourcing payment (as defined in section 5000E(b)).

    This addition prohibits deductions for outsourcing payments, creating a financial disincentive for such payments.

Action History

  1. Introduced in Senate

  2. Read twice and referred to the Committee on Finance.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 546 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (546)

546 members have not signed on to this bill.

Show all 546 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does S 2976 do?
Halting International Relocation of Employment Act or the HIRE ActThis bill imposes a 25% federal excise tax on and disallows tax deductions related to payments made to foreign persons for labor or services benefiting consumers in the United States (outsourcing payments). The bill also provides funding for workforce development initiatives.Specifically, the excise tax applies to outsourcing payments, which the bill defines as any premium, fee, royalty, service charge, or other payment madein the course of a trade or business,to a foreign person (excluding a corporation or partnership organized under the laws of the United States or a U.S. possession), andfor labor or services which benefit (directly or indirectly) U.S. consumers.Further, a federal tax deduction is not allowed for outsourcing payments or the excise tax on such payments.Under the bill, the Internal Revenue Service may require persons to report information related to outsourcing payments. The bill imposes penalties for failing to report such information or pay the excise tax. The bill also establishes and provides funding for the Domestic Workforce Fund, which is to be used forworkforce development and retraining programs,apprenticeship programs and partnerships with industry to expand domestic employment in sectors impacted by outsourcing, and state grants for workforce development for communities with high levels of job displacement.The funding provided by the bill for the Domestic Workforce Fund is equivalent to the amounts received from the tax and penalties imposed by the bill.
Who sponsors S 2976?
S 2976 is sponsored by Moreno, Bernie (Republican).
What is the current status of S 2976?
This bill is in committee in the Senate. Introduced October 06, 2025. It must pass committee before a floor vote.
Where can I track S 2976?
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