Steny H. Hoyer
02/27/2026 | Press release | Distributed by Public on 02/27/2026 10:04
Hoyer, Warren, Sherman, 160 Lawmakers Introduce Direct File Act to Guarantee Free, Easy Tax Filing for Americans
"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.
In addition to directing the IRS to establish and operate a free online tax preparation and filing program, the Direct File Act would:
"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."
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