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Impact Global Solutions

Outsourcing Consultant for CPAs & Accountants

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The HIRE Act Update:
What the Senate Hearing Really Signaled

On September 5, 2025, Senator Bernie Moreno (Ohio) attempted to fast-track the Halting International Relocation of Employment (HIRE) Act by asking the Senate to pass it by unanimous consent. What followed was a short but important exchange that reshapes how CPA firms should interpret the bill’s trajectory.
 
What Actually Happened in the Chamber

  • Senator Moreno’s Push for Immediate Passage
    Moreno asked the Senate to immediately consider and pass the HIRE Act, framing it as a way to stop “corporations taking good jobs and shipping them overseas.”
    He emphasized that:
    • U.S. jobs — especially in call centers — have been moved abroad for lower wages.
    • His bill would impose a 25 % fee on the value of contracts for outsourced work.
    • The revenue would fund trade schools and worker upskilling
 
  • Objection From Senator Jacky Rosen (Nevada)
    Rosen praised the goal of protecting American workers but objected to bypassing the normal legislative process.
    Key points she made:
    • The issue deserves “serious debate” and bipartisan work.
    • States have different needs (e.g., Nevada vs. Ohio).
    • Rushing such a complex piece of legislation through unanimous consent isn’t appropriate.
    • She’s committed to work with Moreno but wants it to go through committee review and regular order.
 
  • Moreno’s Response
    Moreno accepted Rosen’s offer, saying he looked forward to working with her to refine and advance the bill.
 

Bottom line: the bill was blocked from immediate passage but not killed — it will now move into the regular committee and negotiation process with bipartisan discussions promised.

Practical Interpretation for CPA Firms

1. The January 1, 2026 effective date is unlikely.
The objection means the bill must now go through the full legislative cycle (committee review, debate, amendments, votes in both chambers). That process typically extends well beyond a few months.

2. A version of the bill could still advance.
Rosen didn’t oppose the concept — she opposed the process. Both senators expressed a desire to “work together” to address outsourcing. This suggests the idea has bipartisan appeal.

3. Expect changes to key details.
The 25 % fee and the mechanics of enforcement/controls (such as definitions, exemptions, and how payments are tracked) will likely be negotiated. Firms shouldn’t assume the exact numbers or reporting burdens in the introduced bill will survive intact.
 
Action Steps for CPA Firms

  • Inventory Exposure Now
    Identify all payments to foreign service providers and how they’re currently booked (deductible expense, vendor type, country of service).
 
  • Review Contracts for Flexibility
    Add “change in law” clauses or renegotiation triggers so you’re not locked into unfavorable economics if new taxes/fees arise.
 
  • Watch for Committee Markups
    The most significant changes — percentages, definitions, carve-outs — will appear during committee work.
 
 
Professional Viewpoint
Our assessment: The HIRE Act is unlikely to pass on the fast January 2026 timeline originally suggested. However, the bipartisan tone signals that some version of the bill is likely to move forward. Firms should prepare for changes in the fee percentage, deductibility rules, and compliance controls rather than assume the current draft will remain unchanged.
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