Hoyer, Warren, Sherman, 160 Lawmakers Introduce Direct File Act to Guarantee Free, Easy Tax Filing for Americans
February 27, 2026
WASHINGTON, DC – Congressman Steny H. Hoyer (MD-05), Ranking Member of the Financial Services and General Government (FSGG) Appropriations Subcommittee, U.S. Senators Elizabeth Warren (D-MA), Chris Coons (D-DE), and Ron Wyden (D-OR), Ranking Member of the Senate Finance Committee, and Representatives Brad Sherman (CA-32), Don Beyer (VA-08), Judy Chu (CA-28), and Mark Pocan (WI-02) 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.
“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 Congressman Hoyer. “We will keep fighting to bring back Direct File and to expand it nationwide.”
“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 Congressman Hoyer. “We will keep fighting to bring back Direct File and to expand it nationwide.”
“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.”
As House Majority Leader in the 117th Congress, Congressman Hoyer helped secure funding for Direct File in the Inflation Reduction Act. More than 140,000 Americans across twelve states participated in the Direct File pilot in 2024. 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. Additionally, the program was projected to allow an estimated 700,000 Marylanders file their federal and state taxes for free.
Despite Direct File’s success, the Trump Administration ended the program. 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 2025, Congressman Hoyer joined 175 Members of Congress to condemn the Trump Administration's decision to eradicate the program and demand that this decision be reversed.
“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.”
As House Majority Leader in the 117th Congress, Congressman Hoyer helped secure funding for Direct File in the Inflation Reduction Act. More than 140,000 Americans across twelve states participated in the Direct File pilot in 2024. 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. Additionally, the program was projected to allow an estimated 700,000 Marylanders file their federal and state taxes for free.
Despite Direct File’s success, the Trump Administration ended the program. 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 2025, Congressman Hoyer joined 175 Members of Congress to condemn the Trump Administration's decision to eradicate the program and demand that this decision be reversed.
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.
“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.”
“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.”