Rep. Garamendi, Sen. Warren Join 160 Lawmakers to Introduce the Direct File Act to Guarantee Free, Easy Tax Filing for Americans
Bill One-Pager (PDF) | Bill Text (PDF)
WASHINGTON, D.C. – Today, Congressman John Garamendi (CA-08), U.S. Senators Elizabeth Warren (D-Mass.), Chris Coons (D-De.), and Ron Wyden (D-Ore.), Ranking Member of the Senate Finance Committee, and Representatives Brad Sherman (D-Calif.), Don Beyer (D-Va.), Judy Chu (D-Calif.), Steny Hoyer (D-Md.), and Mark Pocan (D-Wisc.) joined over 150 lawmakers in introducing the Direct File Act, new legislation that would reverse the Trump administration’s decision to end the highly successful Direct File program — which allowed taxpayers to file their taxes online, for free, and directly with the government — and make the program permanent.
The average American taxpayer spends eight hours and $160 each year filing their taxes with tax prep companies. In 2024, the IRS launched Direct File to save families time and money. 94% of users described their experience as “excellent” or “above average,” and more than 70% of taxpayers said they would use Direct File if they were eligible. If fully implemented, Direct File was projected to save families up to $23 billion annually in fees, time, and tax credits.
Despite Direct File’s success, the Trump Administration ended the program after extensive lobbying efforts by tax prep companies. This decision contradicts recommendations from the independent Government Accountability Office and Treasury Inspector General for Tax Administration, ultimately raising costs for Americans and making the tax filing experience even more burdensome.
“A free, direct e-filing tax return system is a fundamental taxpayer right,” said Nina Olson, Executive Director of the Center for Taxpayer Rights and former National Taxpayer Advocate. “Just as the government designs and printed paper tax forms for years, so should it design and maintain a user-friendly electronic filing option for individual taxpayers.”
“Americans across the country are struggling with high costs and having trouble making ends meet, so it’s especially frustrating that we no longer have the option to use the free Direct File online filing software developed by the IRS,” said Susan Harley, managing director of Public Citizen’s Congress Watch division. “The Direct File Act would put back in place this commonsense cost saving option for filers and once and for all ensure that corporations aren’t allowed to keep their stranglehold on tax filing. Public Citizen and our partners applaud Senator Warren, Representative Sherman, and their colleagues for their leadership on this critical issue.”
In addition to directing the IRS to establish and operate a free online tax preparation and filing program, the Direct File Act would:
Prohibit the IRS from entering into agreements that restrict its ability to provide free online tax preparation or filing services.
Direct the IRS to publish an annual report on use levels, patterns of usage, and ways to improve access to Direct File.
Direct the IRS to enable seamless integration between state tax filing systems and Direct File, including through information sharing and a new grant program for states.
Reduce tax fraud by getting third-party income information to the IRS earlier in the tax season, allowing the agency to verify this information before issuing refunds.
In total, 40 Senators cosponsored the legislation, including Minority Leader Chuck Schumer (D-N.Y.), Senators Angela Alsobrooks (D-Md.), Tammy Baldwin (D-Wis.), Michael Bennet (D-Colo.), Richard Blumenthal (D-Conn.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Maria Cantwell (D-Wash.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), John Fetterman (D-Pa.), Ruben Gallego (D-Ariz.), Kirsten Gillibrand (D-N.Y.), Maggie Hassan (D-N.H.), Martin Heinrich (D-N.M.), John Hickenlooper (D-Colo.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Andy Kim (D-N.J.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Ed Markey (D-Mass.), Jeff Merkley (D-Ore.), Chris Murphy (D-Conn.), Patty Murray (D-Wash.), Alex Padilla (D-Calif.), Jack Reed (D-R.I.), Bernie Sanders (I-Vt.), Brian Schatz (D-Hawaii), Adam Schiff (D-Calif.), Jeanne Shaheen (D-N.H.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Mark Warner (D-Va.), Peter Welch (D-Vt.), and Sheldon Whitehouse (D-R.I.)
120 Members of the House of Representatives cosponsored the bill as well, including: Representatives Alma Adams (D-N.C.), Pete Aguilar (D-Calif.), Gabe Amo (D-R.I.), Becca Balint (D-Vt.), Nanette Barragán (D-Calif.), Joyce Beatty (D-Ohio), Suzanne Bonamici (D-Ore.), Julia Brownley (D-Calif.), Andre Carson (D-Ind.), Sean Casten (D-Ill.), Kathy Castor (D-Fla.), Sheila Cherfilus-McCormick (D-Fla.), Gilbert R. Cisneros Jr. (D-Calif.), Yvette Clarke (D-N.Y.), Steve Cohen (D-Tenn.), Herb Conaway (D-N.J.), Lou Correa (D-Calif.), Jim Costa (D-Calif.), Danny Davis (D-Ill.), Madeleine Dean (D-Pa.), Diana DeGette (D-Colo.), Rosa DeLauro (D-Conn.), Suzan DelBene (D-Wash.), Chris Deluzio (D-Pa.), Mark DeSaulnier (D-Calif.), Maxine Dexter (D-Ore.), Lloyd Doggett (D-Texas), Sarah Elfreth (D-Md.), Cleo Fields (D-La.), Lizzie Fletcher (D-Texas), Bill Foster (D-Ill.), Valerie Foushee (D-N.C.), Lois Frankel (D-Fla.), Laura Friedman (D-Calif.), Maxwell Frost (D-Fla.), Robert Garcia (D-Calif.), Sylvia Garcia (D-Texas), Jesús “Chuy” García (D-Ill.), Dan Goldman (D-N.Y.), Jimmy Gomez (D-Calif.), Al Green (D-Texas), Adelita Grijalva (D-Ariz.), Josh Harder (D-Calif.), Jahana Hayes (D-Conn.), Jim Himes (D-Conn.), Steven Horsford (D-Nev.), Chrissy Houlahan (D-Pa.), Jared Huffman (D-Calif.), Glenn Ivey (D-Md.), Sara Jacobs (D-Calif.), Pramila Jayapal (D-Wash.), Hank Johnson (D-Ga.), Robin Kelly (D-Ill.), Tim Kennedy (D-N.Y.), Ro Khanna (D-Calif.), Greg Landsman (D-Ohio), Rick Larsen (D-Wash.), George Latimer (D-N.Y.), Summer Lee (D-Pa.), Stephen Lynch (D-Mass.), John Mannion (D-N.Y.), Doris Matsui (D-Calif.), Sarah McBride (D-Del.), April McClain Delaney (D-Md.), Jennifer McClellan (D-Va.), Betty McCollum (D-Minn.), Kristen McDonald Rivet (D-Mich.), Jim McGovern (D-Mass.), LaMonica McIver (D-N.J.), Rob Menendez (D-N.J.), Kweisi Mfume (D-Md.), Seth Moulton (D-Mass.), Kevin Mullin (D-Calif.), Eleanor Holmes Norton (D-D.C.), Alexandria Ocasio-Cortez (D-N.Y.), Johnny Olszewski (D-Md.), Ilhan Omar (D-Minn.), Frank Pallone (D-N.J.), Chellie Pingree (D-Maine), Ayanna Pressley (D-Mass.), Mike Quigley (D-Ill.), Delia Ramirez (D-Ill.), Emily Randall (D-Wash.), Jamie Raskin (D-Md.), Andrea Salinas (D-Ore.), Linda Sanchez (D-Calif.), Mary Gay Scanlon (D-Pa.), Jan Schakowsky (D-Ill.), Kim Schrier (D-Wash.), Bobby Scott (D-Va.), David Scott (D-Ga.), Lateefah Simon (D-Calif.), Adam Smith (D-Wash.), Darren Soto (D-Fla.), Melanie Stansbury (D-N.M.), Suhas Subramanyam (D-Va.), Tom Suozzi (D-N.Y.), Eric Swalwell (D-Calif.), Mark Takano (D-Calif.), Shri Thanedar (D-Mich.), Bennie G. Thompson (D-Miss.), Dina Titus (D-Nev.), Rashida Tlaib (D-Mich.), Jill Tokuda (D-Hawaii), Paul Tonko (D-N.Y.), Ritchie Torres (D-N.Y.), Lori Trahan (D-Mass.), Juan Vargas (D-Calif.), Marc Veasey (D-Texas), Nydia M. Velazquez (D-N.Y.), Eugene Vindman (D-Va.), James Walkinshaw (D-Va.), Debbie Wasserman Schultz (D-Fla.), Bonnie Watson Coleman (D-N.J.), and Nikema Williams (D-Ga.).
The bill is also endorsed by 115 unions, advocacy groups, and national organizations, including Public Citizen, Americans for Tax Fairness, Economic Security Project Action, Groundwork Collaborative, AFL-CIO, American Federation of Teachers (AFT), American Federation of State, County and Municipal Employees (AFSCME), Service Employees International Union (SEIU), Communications Workers of America, Americans for Financial Reform, National Consumer Law Center (on behalf of its low-income clients), Center for Law and Social Policy (CLASP), Main Street Alliance, Institute on Taxation and Economic Policy, P Street, Patriotic Millionaires, Institute for Policy Studies - Program on Inequality, MoveOn, UnidosUS, 20/20 Vision, Advancing CT Together, Alliance for Retired Americans, Allons Babies, Americans for Democratic Action (ADA), Arkansas Asset Builders, Brazilian Worker Center Inc, California Alliance of Caregivers, CASH Campaign of Maryland, Catalyst Miami, Center for New Revenue, Center for the Study of Social Policy, Children's HealthWatch, Church Women United in New York State, Coalition on Human Needs, Color Of Change, Colorado Consumer Health Initiative, Colorado Fiscal Institute, Community Change Action, Connecticut Voices for Children, Consumer Action, Courage California, Demand Progress, Elevate Idaho Families, End Child Poverty CA powered by GRACE, Fair Share America, Faith in Minnesota, Financial Empowerment Network, Futures Without Violence, Garrett County Community Action Committee, Inc., Golden State Opportunity, Grow Brooklyn, Hawaii Children's Action Network Speaks!, Housing Action Illinois, Idaho Center for Fiscal Policy, In the Public Interest, Income Movement, Indivisible Georgia Coalition, ISAIAH (MN), Jobs with Justice, LIFT Inc, LIFT-DC, Maine Center for Economic Policy, Maine Equal Justice, MakingChange, Inc, Marion County Commission on Youth (MCCOY), Maryland Center on Economic Policy, Maryland Volunteer Lawyers Service, Meals4Families, Minnesota Budget Project, Mothers Outreach Network, My Money Story, National Association of Social Workers, National Coalition for Asian Pacific American Community Development, National Committee to Preserve Social Security and Medicare, National Council of Jewish Women Los Angeles, National Organization for Women, National Rural Social Work Caucus, NETWORK Lobby for Catholic Social Justice, New Jersey Policy Perspective, New Mexico Voices for Children, Northern Santa Barbara County United Way, Northwest Progressive Institute, Oregon Center for Public Policy, Oxfam America, Prepare + Prosper, Prosperity Indiana, Public Good Law Center, RAISE Texas, Responsible Wealth, RESULTS, RESULTS DC/MD, RESULTS.org-Massachusetts, Rise Up WV, RootsAction, San Diego for Every Child, SiX Action, Social Work Grand Challenge to Reduce Extreme Economic Inequality, State Innovation Exchange, Strong Economy For All Coalition, The Arc of the United States, Touch Stones Financial Wellness Services, Unitarian Universalist Fellowship of Hidalgo County Texas, Unitarian Universalists for Social Justice, United for a Fair Economy, United for Respect, United Way of Frederick County, United Ways of the Pacific Northwest, Upper West Side Action Group, Vesta Prosperity, Voices for Progress, Washington Anti-Hunger & Nutrition Coalition, Washington State Budget and Policy Center, Women Employed, and Young Invincibles.
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