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This bill requires the Secretary of Labor to maintain a public list of employers that relocate call centers or contract call center work overseas, makes those employers ineligible for federal grants or guaranteed loans for five years, and requires businesses to disclose the physical location of customer service agents and the use of artificial intelligence in customer service communications.
Sec. 2, Definitions: Defines key terms including 'call center' as an operation where employees handle incoming calls, emails, or electronic communications for customer assistance; 'relocating' as closing a call center or at least 30% of its volume and moving operations outside the U.S.; 'contracting call center work overseas' as transferring at least 30% of call center volume through a contract to an entity outside the U.S.; 'employer' as a business with 50 or more employees or 1,500 hours per week; 'business entity' as any for-profit organization conducting commerce in the U.S.; 'customer service communication' as any telecommunication or wire communication between a consumer and a business entity in commerce; and 'artificial intelligence' as a machine-based system that generates outputs like predictions or decisions.
Title I, Sec. 101, List and ineligibility for grants or loans: Employers must notify the Secretary at least 120 days before relocating a call center or contracting work overseas, with a civil penalty of up to $10,000 per day for violations. The Secretary must create and maintain a public list of such employers, who remain on the list for up to 5 years unless they relocate a call center back to the U.S. with equal or more employees or amend contracts to require U.S. performance. Employers on the list are ineligible for new federal grants or guaranteed loans for 5 years, with exceptions for national security, substantial U.S. job loss, or environmental harm. Existing grant or loan recipients on the list must pay a monthly penalty of 8.3% of the total disbursed and receive no further disbursements, and the grant or loan is canceled if they remain on the list for one year. Agencies must give preference in federal contracting to U.S. employers not on the list. This section takes effect one year after enactment.
Sec. 102, Rule of construction related to federal benefits: Nothing in this title allows withholding or denial of federal benefits like unemployment compensation, disability payments, or worker retraining funds to workers employed by employers that relocate operations outside the U.S.
Sec. 103, Report regarding federal call center work locations: Within one year of enactment, the Secretary of Labor must submit a report to Congress documenting the location and amount of call center work conducted by or for the federal government, including amounts done by federal employees versus contractors, all locations of such work, and any job losses from using artificial intelligence for customer service in federal call center work.
Sec. 104, Requirement that call center work under a federal contract be performed inside the United States: The head of an agency awarding a civilian or defense-related federal contract must require as a condition of the contract that any call center work performed under the contract or subcontract be performed inside the United States.
Title II, Sec. 201, Required disclosures by business entities engaged in customer service communications: At the beginning of each customer service communication, a business entity must require its employees or agents to disclose their physical location and, if outside the U.S., that the consumer may request immediate transfer to a U.S.-based agent. Exceptions apply if all participants are in the U.S., if the consumer knowingly contacts a foreign entity, for emergency services, or as excluded by the Federal Trade Commission. If artificial intelligence is used, the business must disclose that a nonhuman is being used and that the consumer may request transfer to a U.S.-based human operator, including by voice command. Upon consumer request, the business must immediately transfer to a U.S.-based human agent. Each year, businesses must certify compliance to the FTC. The FTC must issue regulations within one year of enactment, and these requirements apply to communications occurring one year after enactment.
Sec. 202, Enforcement: Failure to comply with section 201 is treated as a violation of FTC regulations on unfair or deceptive acts. The FTC has the same powers to prevent violations as under the Federal Trade Commission Act, with penalties and privileges under that Act. This does not limit the FTC's authority under other laws.
Summary of the bill text as introduced in House (Aug 12, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.
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Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 27, 2026.