Source: United States House of Representatives – Representative Don Beyer (D-VA)
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.) led 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.
“It’s a no-brainer: Americans should be able to file their taxes easily and for free. Donald Trump canceled Direct File after giant tax prep companies spent millions lobbying to protect their profits,” said Senator Warren. “We’re fighting to lower costs for families by bringing Direct File back and making it the law of the land.”
“Americans shouldn’t have to waste valuable time or hard-earned money just to file their taxes,” said Representative Sherman. “The Direct File Act expands on the successful 2024 pilot and offers a straightforward, no-cost filing option that will make the process simpler and more affordable for working families.”
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.
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.
“Direct File helped hundreds of thousands of American taxpayers file their taxes quickly, easily, and for free – so of course President Trump and Republicans killed it. This year, those Americans will have to go back to expensive tax preparation services owned by President Trump’s donors. This legislation would bring back Direct File, because tax season is already hard enough without having to pay a company to pay your taxes,” said Senator Coons.
“Trump and the Republicans shut down the IRS Direct File program because they’re bought and paid for by the tax software industry and don’t have a problem with middle-class taxpayers getting ripped off every spring,” said Senator Wyden. “This bill is a promise that Democrats are going to restore Direct File the next time we’re in charge of the IRS, and in the meantime, it’s a shame that the Trump administration is a threat to any public service that saves Americans time, hassle and money.”
“The senseless destruction of the IRS’ popular Direct File program last year was just another example of the Trump Administration going out of its way to make life more difficult for the American people,” said Representative Beyer. “The program allowed hundreds of thousands of Americans to file their taxes easily and for free directly with the IRS instead of being forced to go through middlemen. This legislation would codify this important program and prioritize ordinary Americans already struggling with high costs of living ahead of special interests.”
“Direct File worked. It saved everyday taxpayers over $5.5 million in tax preparation fees and it saved them time. But Trump and Republicans killed it, because making the tax filing process simple and free doesn’t benefit their billionaire donors and the giant tax prep companies that profit off of confusion and fees. That’s why I joined Representative Brad Sherman and Senator Elizabeth Warren to introduce the Direct File Act of 2026, which would restore and permanently codify the IRS’s free, government-run online tax filing program so more Americans can file their taxes quickly and at no cost. I am committed to ensuring we bring Direct File back and stop Trump from rigging the system against the people it’s intended to serve,” said Representative Chu.
“The federal government requires Americans to pay their taxes, thus it ought to provide them a free and easy way to do so. That’s why I helped lead Democrats’ efforts to establish Direct File through the Inflation Reduction Act: to save Americans time and money. That logic is lost on the Trump Administration. Trump may not care about lowering Americans’ costs, but Democrats still do,” said Representative Hoyer. “We will keep fighting to bring back Direct File and to expand it nationwide.”
“Direct File is a popular program that allows Americans to file their taxes for free, cutting out the middleman. But big tax-prep companies like TurboTax and H&R Block pushed the Trump administration to kill it,” said Representative Pocan. “It’s time to bring back Direct File permanently nationwide, saving taxpayers time and money.”
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.), John Garamendi (D-Calif.), 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 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.
“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.”