Bill · S. 2976· Senate(119-S-2976)
HIRE Act
- Introduced
- 10/6/2025
- Last activity
- 10/6/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Bernie Moreno
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The HIRE Act seeks to amend the Internal Revenue Code of 1986 to impose a 25 percent excise tax on outsourcing payments. An outsourcing payment is defined as a payment made by a United States person to a foreign person for labor or services that benefit consumers in the United States. This bill also prohibits the deduction of these outsourcing payments for tax purposes. The revenue generated from these taxes and penalties will be used to establish and fund the Domestic Workforce Fund. This fund is intended to support workforce development, retraining, and apprenticeship programs. These provisions are set to take effect for payments made after December 31, 2025.
Yes· 3 of 7
Does this raise the taxes companies pay?+7
The bill imposes a 25 percent excise tax on payments made by United States persons to foreign persons for labor or services.
Is this likely to create jobs?+5
The Domestic Workforce Fund supports apprenticeship programs and industry partnerships to expand domestic employment.
Would union members be better off under this?+5
The bill focuses on expanding domestic employment through apprenticeship and workforce development programs.
The opposite
Would business owners be better off under this?-6
The bill imposes a new excise tax and denies the deduction for outsourcing payments, increasing business costs.
Does this make it easier to run a small business?-2
The loss of tax deductions for outsourcing payments may increase costs for businesses relying on international service providers.
Who it would affect, and how
Potential Positive Impacts for People
-
Workforce Development and Retraining: The bill creates a Domestic Workforce Fund to pay for programs administered by the Department of Labor, which can help workers gain new skills (Section 3).
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Expansion of Domestic Employment: The creation of the Domestic Workforce Fund allows for apprenticeship programs and industry partnerships designed to expand jobs in sectors hit by outsourcing (Section 3).
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Support for Impacted Communities: The fund provides for grants to States to support workforce development initiatives specifically targeted at communities experiencing high levels of job displacement (Section 3).
Potential Negative Impacts for People
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Increased Costs for Businesses: United States persons making outsourcing payments will be subject to a tax equal to 25 percent of the payment amount (Section 2).
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Loss of Tax Deductions: Businesses will no longer be allowed to take a deduction for any payments classified as outsourcing payments (Section 4).
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Higher Penalties for Non-compliance: There is an increased penalty for the failure to pay the tax imposed by this act, substituting a 50 percent rate for the previous 5 percent rate (Section 2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Corporate Taxes+7Increases Job Creation+5Improves Economic Growth+3Improves Small Business Support-2
- Demographic And Interest Groups
- Good For Union Workers+5Good For Low Income Households+4Good For Rural Residents+2Good For Business Owners-6
- Social Issues And Justice
- Improves Poverty Reduction+3
- 10/6/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.