The bill would require the Secretary of Labor to publish a public list of employers that relocate call center work overseas and to bar those employers from federal grants or guaranteed loans for five years. It would also restrict federal funding for entities that relocate, and establish removal criteria if operations return to the United States.
In addition, the act would mandate that call center work performed under federal contracts be conducted inside the United States and would create disclosure requirements for customer service interactions about agent location and use of artificial intelligence, with enforcement by the Federal Trade Commission. The bill includes reporting obligations to Congress on federal call center locations and a one-year timeline for implementing the new disclosures and related rules.
At a Glance
What It Does
Requires notice before relocation, creates a public list of relocating employers, and negates federal funding for those on the list. Also bars US-based call center work for federal contracts unless performed domestically.
Who It Affects
Large U.S. employers with call centers (50+ employees or 1,500+ hours weekly), federal grant/loan programs, and agencies awarding contracts or funds for call center work.
Why It Matters
Aims to deter offshore relocation of call center work, preserve domestic jobs, and increase transparency in how federal funds are used for customer service operations.
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What This Bill Actually Does
The Keep Call Centers in America Act of 2025 imposes several safeguards on where call center work can be performed and how it must be conducted when federal funds are involved. It creates a public registry of employers that relocate call center work overseas and imposes a five-year ineligibility window for new federal grants or guaranteed loans on those listed.
There are mechanisms to remove an employer from the list if operations move back to the United States or if contracts are amended to require U.S.-based staffing. The act also requires that call center work performed under federal contracts be conducted in the United States and establishes a table of contents with separate Title II provisions on disclosures in customer service communications.
In Title II, entities engaged in customer service communications must disclose their physical locations at the start of each interaction, and, if located abroad, inform consumers they can be transferred to a U.S.-based agent. The bill also requires disclosure if AI is used and provides a path for consumers to request human assistance, along with annual certifications to the FTC and eventual agency regulations.
Enforcement is assigned to the FTC, with penalties and clawbacks tied to the federal grant and loan programs, and a one-year effective date to begin implementing these rules. The act also requires a congressionally mandated report on federal call center locations and a preference in federal contracting for not relocating call center work overseas.
The Five Things You Need to Know
The bill requires a public notice 120 days before relocating a call center overseas or contracting call center work overseas; civil penalties can reach up to $10,000 per day of violation.
The Secretary must establish and maintain a public list of relocating employers, with a 5-year retention after each relocation.
On the list, employers lose eligibility for new direct or indirect federal grants or guaranteed loans for 5 years.
Section 104 requires call center work under federal contracts to be performed inside the United States, with a contracting preference for non-listed United States employers.
Title II requires disclosures of physical location and AI usage in customer service communications, plus an option to transfer to a U.S.-based human agent and annual FTC certification.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Public list of relocations and penalties
This section requires employers to notify the Secretary at least 120 days before relocating a call center overseas or contracting call center work overseas. It directs the Secretary to establish and maintain a public list of relocating employers, with removal rules if the operation returns to the United States or the contract requires all workers to be U.S.-based. A civil penalty of up to $10,000 per day applies for noncompliance with the notice requirement.
Rule of construction for federal benefits
This section clarifies that nothing in Title I should be construed to limit workers’ rights to federal unemployment, disability, retraining, or other benefits. It ensures that relocation penalties do not create a barrier to existing or future worker benefits.
Congressional report on federal call center locations
Within one year of enactment, the Secretary of Labor must prepare and submit a report detailing the location and funding of all federal call center work, including the share performed by federal employees versus contractors, all sites, and job losses related to AI-enabled customer service.
US-based performance of federal call center work
Requires that, as a condition of civilian or defense-related federal contracts, call center work be performed inside the United States, aligning contracting requirements with the bill’s domestic-work objective.
Disclosures in customer service communications
Businesses engaged in customer service communications must disclose agent location at the start of each interaction. If located outside the United States, consumers may request transfer to a U.S.-based agent. There are exceptions for wholly U.S.-located entities, emergency services, certain initiated foreign interactions, and FTC-excluded classes.
Enforcement by the FTC
Violations of Section 201 are treated as unfair or deceptive acts under the FTC Act. The FTC administers penalties and has authority to promulgate regulations to carry out Section 201, preserving existing FTC powers and procedures for enforcement.
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Explore Economy in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Domestic call center workers and prospective U.S.-based employees who may retain or gain call-center jobs.
- U.S.-based employers operating call centers who are not listed, or who relocate domestically and thus avoid penalties.
- Federal agencies and taxpayers benefiting from reduced offshoring of critical customer-service functions.
- Labor unions and workforce advocates seeking stronger domestic-job protections.
- Regulated consumers who gain transparency about the location of service agents and the use of AI in customer service.
Who Bears the Cost
- Employers that relocate call centers overseas or contract work abroad and face public listing plus 5-year ineligibility for new federal grants or guaranteed loans.
- Existing grant or loan recipients that subsequently appear on the relocation list and incur penalties (monthly 8.3% penalties and possible grant clawbacks).
- Federal agencies administering grants or contracts that must enforce new rules and penalties, creating administrative costs.
- Contracting authorities that must verify compliance and potentially adjust procurement practices.
- Businesses providing customer service with overseas operations that must establish disclosure and transfer processes to comply with the new rules.
Key Issues
The Core Tension
Balancing the goal of preserving domestic call-center jobs and restricting offshore work with the costs of compliance, potential disruption to services, and the risk of unintended penalties for legitimate global operations.
The bill creates a strong domestic-job and transparency framework, but it also imposes significant compliance and financial penalties on employers, which could affect hiring strategies and the availability of federal funding. The reliance on one-year deadlines for implementing disclosures and regulations may require rapid administrative action by agencies and the FTC, potentially raising transitional costs for both government and industry.
The exemptions (emergency services, certain consumer-initiated foreign interactions, and FTC waivers) create potential gray areas in enforcement and could complicate universal applicability across industries.
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