What is the US Hire Act Bill? Understand Easily Here

The United States has introduced a new legislative proposal known as the Halting International Relocation of Employment (HIRE) Act. Brought forward by Ohio Senator Bernie Moreno, the Bill is designed to discourage outsourcing by American companies. Under its provisions, a 25% excise tax would be levied on payments made to overseas workers for services that ultimately serve U.S. consumers.

This Bill seeks to block the tax deductions on such expenses, and the revenue collected from these measures would be guided into a "Domestic Workforce Fund," which is aimed at financing apprenticeship programs and reskilling initiatives to strengthen the American workforce.

While college grads in America struggle to start careers, globalist politicians and C-Suite execs ship jobs good-paying overseas for cheap.

Their days of ripping this country off are over—American companies have to hire American workers. Period. https://t.co/qqVkibE8gc

— Bernie Moreno (@berniemoreno) September 5, 2025

What is the US HIRE Act Bill 2025?

The U.S. HIRE Act Bill 2025 proposes a 25% tax on outsourcing payments and disallows tax deductions for such expenses, aiming to reshore jobs and fund domestic workforce programs. It could severely impact outsourcing-dependent sectors like India’s IT industry.

What are the key features of the US HIRE Act Bill 2025?

The US HIRE Act Bill 2025 focuses on restricting what it terms as "outsourcing payments." 

• These include any fee, premium, royalty, or service charge paid by a U.S. business to a foreign entity for labour or services that ultimately benefit consumers in the United States. Such payments would attract a 25% excise tax.

• If a payment relates to services used by both U.S. and non-U.S. consumers, the tax would apply only to the portion linked to U.S. consumers.

• The Bill defines a "foreign person" as anyone who is not a U.S. resident, excluding corporations or partnerships formed under the laws of U.S. territories. It also authorises the Treasury Secretary to mandate U.S. businesses to report these transactions.

• A major change proposed in the legislation is the steep rise in penalties for tax non-compliance. The penalty for failing to pay would jump from 0.5% per month to 50% per month, with the usual 25% cap removed. Furthermore, companies would not be able to claim this excise tax as a deductible expense.

Creation of the Domestic Workforce Fund

The US HIRE Act Bill 2025, which is also called for the establishment of a dedicated “Domestic Workforce Fund” under the U.S Treasury. This fund would be financed through the revenue collected from the outsourcing taxes, along with surcharges and related penalties.

The funds, which will be initiated, would support workforce development programs, apprenticeships, and reskilling initiatives run by the Department of Labour in the U.S. It would also provide grants to states, particularly targeting regions heavily impacted by job losses due to outsourcing.

If this bill gets passed, the provisions of the HIRE Act would apply to payments made on or after January 1, 2026.

Conclusion

The U.S. HIRE Act Bill 2025 seeks to curb outsourcing by imposing a 25% excise tax on payments to foreign workers, restricting deductions, and channeling revenues into domestic workforce development. If enacted, it could reshape global outsourcing patterns while strengthening U.S. labor markets through reskilling and apprenticeship programs.