Congress Targets AI and Offshore Call Centers With New Bill Mandating Disclosure and Federal Funding Penalties

Congress proposes the Keep Call Centers in America Act to require AI and offshore call disclosures. Customers can request a U.S.-based human representative.

Categorized in: AI News Customer Support
Published on: Aug 05, 2025
Congress Targets AI and Offshore Call Centers With New Bill Mandating Disclosure and Federal Funding Penalties

Talk to a Human or Pay the Price: Congress Proposes Call Center Bill Mandating AI and Location Disclosures

If you’ve ever been stuck repeating “representative or agent” or pressing zero with no luck, a new bill in Congress might change your experience for the better. On July 30, 2025, Senators Ruben Gallego (D-AZ) and Jim Justice (R-WV) introduced the Keep Call Centers in America Act, a bipartisan effort focused on call center operations and transparency around AI use and offshore work.

What’s the Bill About?

This legislation targets two main issues affecting customer support: the offshoring of call center jobs and the growing use of AI in handling customer service calls. Call centers currently employ about 3 million Americans, but projections show a loss of 150,000 jobs by 2033. Plus, a recent survey found that 70% of people find automated phone systems more frustrating than talking to a human.

The bill would require businesses to disclose upfront whether your call is being handled by an AI system or a human agent located outside the U.S. If either is true, customers can request to be transferred to a U.S.-based human representative. This kind of transparency aims to improve customer service quality and keep more jobs at home.

Key Requirements for Businesses

  • Disclose if the caller is speaking to AI or an offshore agent at the start of the interaction.
  • Allow customers to request a transfer to a U.S.-based human representative.
  • Certify yearly compliance with these rules to the Federal Trade Commission (FTC).
  • Applies to businesses with 50 or more employees or those with 50 employees working at least 1,500 hours weekly combined.

Consequences for Offshoring

The bill introduces stiff penalties for companies relocating call center jobs overseas. Employers must notify the Department of Labor (DOL) at least 120 days before moving or outsourcing call center work abroad. Offshoring companies would be publicly listed by the DOL and lose eligibility for new federal grants or guaranteed loans for five years.

Additionally, companies with existing federal grants could face monthly penalties of 8.3% of the total award already paid out and risk cancellation of those awards if they remain on the offshore list for a year. Exceptions are allowed if denying federal funding would threaten national security, cause major domestic job losses, or harm the environment.

Companies can get off the offshore list by bringing call center jobs back to the U.S. at equal or higher employment levels or by changing contracts to require U.S.-based operations.

Federal Contracting and Reporting

All call center work under federal contracts must be done in the U.S. Federal agencies will prioritize contracts with companies not on the offshore list. The DOL will also report to Congress on the extent of federal call center work, including job losses linked to AI use.

What This Means for Customer Support Professionals

This bill aims to protect American customer support jobs and bring more transparency to how calls are handled. Unions like the Communications Workers of America (CWA) argue that outsourcing and AI have been used to cut costs at the expense of good jobs and quality service.

If passed, businesses will need to adjust their operations to comply. For customer support workers, this could mean more opportunities to handle calls domestically and clearer communication with customers about who or what they’re speaking with.

How Should Companies Prepare?

Even though the bill doesn’t directly change existing telemarketing or consumer communication laws, it overlaps with obligations around consumer transparency and consent. Businesses using AI or offshore call routing should watch the bill’s progress and consider updating policies in advance. The requirements would take effect one year after the bill becomes law, offering some time to prepare.

Where It Stands Now

The Keep Call Centers in America Act is still early in the legislative process. Its future depends on committee review and congressional support. It highlights growing attention to how technology, labor, and customer experience intersect in call centers.

For anyone working in or managing customer support, staying informed about this bill is smart. Clear disclosures and more U.S.-based support agents could soon be the norm, potentially improving both job security and customer satisfaction.

For those interested in learning more about AI’s role in customer service and how to work effectively alongside it, check out Complete AI Training’s latest courses.


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