This bill, called the HIRE Act (Halting International Relocation of Employment Act), creates a new tax on American companies that pay foreign workers to provide services to U.S. customers. Starting in 2026, any U.S. business that hires foreign workers for jobs that benefit American consumers will have to pay a 25% tax on those payments. For example, if a company pays $100,000 to a foreign call center to handle customer service for U.S. clients, they'd owe a $25,000 tax on that payment.

The bill also prevents companies from deducting these outsourcing payments as a business expense on their taxes, making the cost even higher. Companies will need to report these payments to the IRS and certify under penalty of perjury what they're paying for. If a company fails to pay the tax, the penalties are steep—up to 50% of the unpaid amount. The bill does allow for partial taxation if a company's foreign workers serve both U.S. and international customers; only the portion serving U.S. customers gets taxed.

All the money collected from this new tax goes into a special fund called the Domestic Workforce Fund, which will be used to pay for job retraining programs, apprenticeships, and grants to states to help workers displaced by outsourcing. The goal is to discourage companies from moving jobs overseas while funding programs to help American workers adapt to changing job markets.