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S. 2976 119th Congress Senate

HIRE Act

Official title: A bill to amend the Internal Revenue Code of 1986 to impose an excise tax on payments by United States taxpayers to foreign persons for services provided to Un… Show full official titleShow less

Official title: A bill to amend the Internal Revenue Code of 1986 to impose an excise tax on payments by United States taxpayers to foreign persons for services provided to United States consumers, and for other purposes.

Introduced: October 6, 2025 Introduced by: Bernie Moreno Republican · Ohio See on congress.gov
Taxation
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 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Oct 6, 2025
Read twice and referred to the Committee on Finance.
Oct 6, 2025
Introduced in Senate
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What's happening now October 6, 2025

Read twice and referred to the Committee on Finance.

 Plain-English summary Congressional Research Service

Halting International Relocation of Employment Act or the HIRE Act

This 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 made

  • in 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), and
  • for 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 for

  • workforce 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. 

 Related & companion bills 1
  • HR 7559 To amend the Internal Revenue Code of 1986 to deny deduction for outsourcing payments.
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Lobbying activity 35

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

Bodies those filers lobbied

A filing lists the bills it worked on and the parts of government it contacted in separate sections, so these are the bodies those filers named anywhere in the filing, not a per-bill breakdown.

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APA
U.S. Congress. (2026). S. 2976: HIRE Act. 119th Congress. Open America. https://openamerica.io/bill/119-S-2976/
MLA
"S. 2976: HIRE Act." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-S-2976/.
Bluebook (legal)
S. 2976, 119th Cong. (2026), https://openamerica.io/bill/119-S-2976/.
Markdown link
[S. 2976: HIRE Act](https://openamerica.io/bill/119-S-2976/)
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