Keep Call Centers in America Act: Job Impact Explained

Written by: Matt Beucler, CEO, Plura AI

Key Takeaways for Contact Center and CX Leaders

• The Keep Call Centers in America Act (S.2495) requires 120-day advance notice before offshoring call-center work and places violators on a public Department of Labor list that can block federal grants and loans.

• Three employment scenarios point to a net reduction of roughly 150,000 U.S. customer-service roles by 2027 as operators accelerate automation to manage higher domestic labor costs.³

• 100% U.S.-infrastructure AI platforms can meet the Act’s requirements while handling large volumes without proportional headcount growth and with lower total cost than traditional onshore or offshore models.

• Operators face layered financial exposure from monthly penalties, loss of federal contracting preference, and AI disclosure rules that require clear consumer notification and transfer options.

• Plura AI’s 100% U.S.-infrastructure AI platform provides a scalable domestic alternative that supports compliance, disclosure, and federal-contracting requirements.

How S.2495 Works and Where It Stands in 2026

S.2495 was introduced on July 29, 2025 by Sen. Ruben Gallego (D-AZ) and Sen. Jim Justice and referred to the Senate Committee on Commerce, Science, and Transportation, where it remains at the Introduced stage as of May 2026.² Most provisions would take effect one year after enactment.

These mechanics shape how contact centers plan offshoring, federal work, and AI deployment:

• 120-day notice. Employers with 50 or more call-center employees must notify the Secretary of Labor at least 120 days before relocating a call center or contracting 30% or more of call volume overseas. Violations carry civil penalties of up to $10,000 per day.

• Public list. The Secretary of Labor maintains a publicly available list of employers that relocate or offshore call-center work. Listed employers remain on the list for up to five years.

• Federal grant and loan ineligibility. Employers listed under S.2495 are ineligible for new direct or indirect federal grants or guaranteed loans for 5 years after being added to the list (with limited exceptions).

• Monthly penalties on existing awards. Employers on the list with existing federal grants or loans pay a monthly penalty equal to 8.3% of prior disbursements and face cancellation of the award if they remain listed after one year.

• Federal contracting preference. All call-center work performed under a federal contract or subcontract must be performed inside the United States. Agencies must give contracting preference to employers not on the relocation list.

• Disclosure requirements. At the start of each customer-service communication, agents must disclose their physical location. If AI is used, the business must disclose that a nonhuman system is handling the call and inform the consumer of their right to request immediate transfer to a U.S.-based human agent.

The companion FCC Notice of Proposed Rulemaking (CG Docket No. 26-52, published April 23, 2026) proposes limiting the percentage of offshore customer-service calls, using 30% as an illustrative benchmark while seeking comment on the final threshold.² It also proposes that sensitive consumer data such as passwords, Social Security numbers, and bank or card data be handled exclusively by U.S.-based centers, which extends the regulatory perimeter beyond S.2495.

See how Plura’s platform handles S.2495 disclosure and notice flows in a live demo.

Projected Job Impacts for 2026–2027

The Bureau of Labor Statistics projects customer service representative employment will decline from 2,814,000 jobs in 2024 to 2,660,300 by 2034, a net loss of 153,700 positions over the decade, driven primarily by automation and self-service systems.⁴ The BLS also forecasts 341,700 average annual openings through 2034, all from workers transferring out or exiting the labor force rather than from occupational growth.

Against that baseline, three scenarios model the 2026–2027 employment picture under S.2495:

Scenario	Primary Driver	Projected Net U.S. Role Change by End-2027
Baseline (BLS trend continues)	Automation and self-service adoption at current pace	Net reduction consistent with BLS automation trends
Accelerated offshoring (pre-enactment rush)	Operators accelerate offshore moves before 120-day notice takes effect	Greater net reduction due to accelerated offshoring
Accelerated AI adoption (domestic cost pressure)	Rising domestic labor costs and 35-45% annual turnover accelerate AI substitution	Substantial net reduction due to accelerated AI adoption

These scenarios draw on BLS baseline data and industry analysis, not official government forecasts. Actual outcomes depend on enactment timing, enforcement, and the pace of AI deployment across verticals.

AI Automation as a Response to S.2495

U.S. contact centers carry an annual agent turnover, which forces continuous recruiting and retraining and pushes effective domestic labor costs well above the base hourly rate. Contact centers allocate 60-70% of operating costs to agent labor, so labor becomes the primary lever when regulatory pressure raises the cost of offshore alternatives.

A 2023 Stanford-led study by Erik Brynjolfsson found that an AI-based conversational assistant increased productivity by an average of 14% per hour for more than 5,000 customer support agents.³ That 14% gain means one AI-augmented agent can handle the volume that previously required more than one agent, which compresses headcount for a given workload. Under S.2495’s domestic-only mandate for federal contract work, this compression makes AI deployment more attractive than proportional hiring because the productivity gain reduces cost even when infrastructure remains fully domestic.

Federal Contracting Penalties and Public-List Impact

The financial mechanics of S.2495’s public list create compounding exposure for operators with federal contract revenue. Employers on the list pay a monthly penalty equal to 8.3% of prior grant or loan disbursements and face cancellation of the award if they remain listed after one year. New federal contract awards may be clawed back if the employer does not return operations to the U.S. within 180 days.

Healthcare plans that derive 40-70% of revenue from Medicare and Medicaid could lose access to federal funding, grants, and loans if they continue using global CX partners under the Act. For operators in healthcare, insurance, and financial services, the public list functions as a direct threat to the revenue base, not just a reputational concern.

Public listing under S.2495 increases accountability and shapes how organizations evaluate their CX strategy and workforce location decisions, beyond the direct monetary penalties. Procurement teams at federal agencies are directed to give contracting preference to employers not on the list, which means listed operators face a structural disadvantage in competitive bids regardless of price.

Industry leaders consistently note that while customer service work can be outsourced, accountability for compliance and outcomes remains with the domestic leadership team.

Shifting Toward Higher-Skilled Domestic Roles

Operators forced to repatriate work under S.2495 cannot simply replace offshore seats with domestic seats at the same skill level. The economics favor a smaller, more capable domestic workforce paired with automation.

The roles that remain after AI substitution focus on oversight, conversation design, compliance monitoring, and escalation handling. AI contact centers carry a 0% turnover rate compared to traditional operations’ high turnover, so the human roles that remain tend to be held by workers with longer tenure, deeper product knowledge, and higher skill floors. Training investment per remaining human seat rises, while total headcount falls.

See how Plura routes routine calls to AI and escalates complex interactions to U.S.-based agents.

TCO Comparison: U.S. AI Infrastructure vs. Offshore vs. Legacy Onshore

Attribute	Offshore BPO	Legacy Onshore Human Centers	100% U.S.-Infrastructure AI (Plura)
Deployment model	$8-$14/hr per agent (India/Philippines), 4-8 weeks to recruit and train additional agents	$25-$42/hr loaded onshore, 2-4 weeks training per new hire	Scales instantly to 10x volume overnight with zero additional hiring or training
Channel support	Voice and basic digital, channel handoffs typically require separate vendor contracts	Voice-primary, SMS and digital require additional tooling and headcount	Voice, SMS, RCS, and webchat on one stateful conversation database
Compliance controls	FCC CG Docket 02-278 disclosure requirements raise audit and transparency costs, data residency outside U.S.	Domestic data residency, compliance bolted on via third-party tools	SOC 2, HIPAA, ISO certification, GDPR, SHAKEN/STIR caller ID verification, TCPA compliance, DNC compliance, real-time DNC scrubbing on every outbound contact1
Infrastructure ownership	Foreign-hosted, subject to FCC NPRM 30% cap and sensitive-data prohibition proposals	Domestic, typically routes voice through third-party CPaaS (Communications Platform as a Service)	FCC-licensed audio bridging carrier, voice originates on Plura’s own domestic infrastructure
Scalability	4-8 weeks to recruit and train additional agents, 45-60% annual attrition offshore	High annual turnover, linear headcount scaling, domestic labor market struggles with peak-season surges	Instant scale, 50-seat equivalent costs $180K-$300K annually vs. $1.2M fully loaded offshore
Annual TCO (100-seat equivalent)	$35,000-$50,000/month for 50-seat equivalent offshore	$4M-$7M annually for 100-seat traditional contact center	$300,000-$700,000 annually for equivalent volume on Plura

Operator Action Checklist for S.2495 Planning

The cost and risk profile above only turns into savings if operators plan deliberately. Contact center leaders and C-suite executives evaluating S.2495 exposure can work through these steps with qualified legal and operational counsel:

1. Audit current offshore call volume. Identify what percentage of total call volume routes to non-U.S. agents or contractors. The 120-day notice window described in the bill triggers when offshore volume reaches 30% for employers with 50 or more call-center employees.

2. Map federal contract and grant exposure. Identify all active federal grants, guaranteed loans, and federal contracts. Listed employers face 8.3% monthly penalties on existing disbursements and ineligibility for new awards.

3. Monitor the Department of Labor public list. Establish a process to check the list quarterly. Appearing on it triggers immediate procurement and funding consequences.

4. Review vendor contracts for offshore exposure. Every BPO or subcontractor agreement that routes call-center work outside the U.S. introduces S.2495 exposure. Consult counsel on contract amendment timelines relative to the 120-day notice window.

5. Model TCO for domestic AI alternatives. A 100-seat contact center running on U.S.-infrastructure AI costs $300,000-$700,000 annually versus $4M-$7M for a traditional onshore operation.³ Run these comparisons before assuming repatriation requires proportional headcount.

6. Pilot a U.S.-infrastructure AI deployment on a defined call type. Start with a high-volume, lower-complexity flow such as inbound qualification or appointment confirmation to establish baseline conversion and compliance metrics before broader rollout.

7. Confirm AI disclosure compliance posture. S.2495 describes disclosure at the start of each customer-service communication when AI is used, including the consumer’s right to request transfer to a U.S.-based human agent. Work with counsel to confirm how your AI platform’s disclosure workflow supports these requirements.

Conclusion and ROI Calculator CTA

S.2495 creates three simultaneous pressures on contact-center operators: a 120-day notice requirement that slows offshore moves, a public list that affects federal funding and contracting preference, and a disclosure mandate that puts AI usage in front of every customer. The FCC NPRM (CG Docket No. 26-52) adds a proposed 30% offshore cap and a prohibition on offshore handling of sensitive consumer data.

Operators best positioned for this environment combine domestic infrastructure with automation rather than relying on rapid domestic hiring alone. Regulatory pressure on offshore call centers accelerates modernization and raises operating costs, which pushes firms toward automation and operating-model redesign instead of a direct headcount swap. The math favors domestic AI, with a roughly sixfold cost advantage for AI seat-equivalents compared with fully loaded offshore teams, as shown in the TCO comparison above.

Plura runs on 100% U.S. infrastructure by architecture. Voice origination, model hosting, data storage, and call recording all sit on domestic infrastructure. The platform supports the full compliance stack detailed in the TCO comparison above, including SOC 2, HIPAA, and real-time DNC scrubbing.¹ Every outbound contact is checked against federal and state DNC registries in real time before dial. Operators using Plura report “100% U.S.-handled” in their broadband consumer label disclosures.

Calculate your S.2495 compliance cost in real time with Plura’s ROI tool.

Frequently Asked Questions

What is the Keep Call Centers in America Act, and who does it apply to?

The Keep Call Centers in America Act (S.2495) is a Senate bill introduced on July 29, 2025, that applies to employers with 50 or more call-center employees. It describes a 120-day advance notice requirement before relocating a call center outside the United States or contracting a significant share of call volume to overseas vendors, as outlined in the bill summary above. The bill covers customer-service operations broadly and includes specific provisions for federal contractors, stating that all call-center work performed under a federal contract or subcontract must be performed inside the United States. As of May 2026, the bill remains in committee and has not been enacted. Most provisions would take effect one year after enactment. Operators with federal contract revenue, federal grants, or federally guaranteed loans face the most direct financial exposure under the bill’s public-list and penalty mechanics.

How does the public list under S.2495 affect federal contracting and funding?

The Secretary of Labor must maintain and publish a list of employers that relocate call centers or contract call-center work overseas. Employers on the list are ineligible for new direct or indirect federal grants or guaranteed loans for up to five years. Employers with existing federal grants or loans that are added to the list must pay a monthly penalty equal to 8.3% of prior disbursements, and the award may be canceled if the employer remains on the list after one year. Federal agencies are directed to give contracting preference to employers not on the list, which creates a structural procurement disadvantage for listed operators beyond the direct financial penalties. Removal from the list requires meeting specific repatriation or contract-amendment criteria. For operators in healthcare, insurance, and financial services with significant Medicare, Medicaid, or federal contract revenue, the list represents a direct threat to the revenue base, not just a reputational concern.

Does S.2495 require disclosure when AI handles customer-service calls?

Section 201 of S.2495 describes disclosure at the start of each customer-service communication when a nonhuman AI or machine handles the call. The consumer must also be informed of their right to request immediate transfer to a U.S.-based human agent. This disclosure framework applies regardless of where the AI infrastructure is hosted. Operators deploying AI for customer service need to confirm that their platform’s disclosure workflow supports these requirements. Plura’s platform is built to support this disclosure at the conversation level, with warm-transfer routing to U.S.-based human agents when a consumer requests it. Operators should consult qualified legal counsel on how their specific deployment aligns with S.2495’s disclosure provisions once the bill is enacted.

Why is 100% U.S.-infrastructure AI a different category from standard AI voice tools?

Most AI voice platforms are API resellers built on top of third-party telecom carriers. They do not own the carrier stack, cannot issue branded caller ID at the carrier level, and their infrastructure dependencies may include foreign data centers or model-hosting environments. Under the FCC NPRM (CG Docket No. 26-52) and S.2495, those foreign infrastructure dependencies create compliance exposure that the platform itself cannot resolve. Plura is its own FCC-licensed audio bridging carrier. Voice originates on Plura’s domestic infrastructure, not a third-party CPaaS. Model hosting, data storage, and call recording all sit on U.S. infrastructure by architecture. That distinction matters for operators that need to report “100% U.S.-handled” in broadband consumer label disclosures or satisfy federal contract requirements under S.2495. It also matters for HIPAA-adjacent verticals where sensitive consumer data cannot leave domestic infrastructure under the FCC NPRM’s proposed sensitive-data prohibition.

What is the realistic cost difference between repatriating offshore call-center work to domestic human agents versus deploying U.S.-infrastructure AI?

The cost gap between domestic human repatriation and U.S.-infrastructure AI is large. Offshore call center labor runs $8-$14 per loaded agent hour in India and the Philippines, but the fully loaded cost including turnover, training, quality assurance, management, and technology runs $14-$22 per hour. U.S. onshore human agents cost $25-$42 per loaded agent hour, and a 100-seat traditional contact center costs $4M-$7M annually. A 50-seat offshore team costs approximately $1.2M annually fully loaded. As shown in the TCO analysis above, Plura’s cost per seat-equivalent is roughly one-sixth that of a fully loaded offshore team, and a 100-seat equivalent on Plura runs $300,000-$700,000 per year. The AI model also removes the high annual turnover that forces continuous recruiting and retraining in both offshore and domestic human operations. Operators evaluating S.2495 planning options should model the full TCO of each path, including potential exposure from remaining on the Department of Labor public list.