CallZent’s Powerful Guide to Understanding the Keep Call Centers in America Act of 2025

Is your business ready for a major shift in how customer service is handled in the United States? A proposed piece of legislation called the Keep Call Centers in America Act of 2025 is gaining traction, and it’s designed to encourage businesses to keep their call center jobs right here in the U.S. by rolling out new regulations and financial incentives. For business leaders, this isn’t just a headline—it’s a signal to re-evaluate your entire customer support strategy.

What is the Keep Call Centers in America Act of 2025?

The Keep Call Centers in America Act of 2025 is more than just a proposal; it’s a significant legislative push to protect American jobs, strengthen consumer data security, and bring a new level of transparency to customer interactions. At its core, the Act is a direct response to the long-standing trend of offshoring call center work to countries with lower labor costs.

For years, companies have moved these critical operations overseas to trim their bottom line. But this practice has sparked valid concerns over the loss of U.S. jobs and the security of sensitive customer data being managed abroad.

What’s Driving This New Legislation?

This proposed bill isn’t just about jobs—it’s about rebuilding trust with the American consumer. We’ve all had that frustrating experience of not knowing where in the world the agent we’re talking to is located or who has access to our personal information. The Act takes this head-on by requiring clear disclosures.

It also taps into a broader economic goal of strengthening the domestic workforce. The U.S. call center industry has been a huge source of employment, with an estimated 2.86 million workers in 2025. By creating tax incentives and other perks, the bill aims to nudge companies into reinvesting in American talent. You can discover more insights about call center statistics on Sprinklr.com.

Core Objectives of the Keep Call Centers in America Act of 2025

In short, the Act aims to make keeping call centers in the U.S. a more attractive and straightforward choice for businesses.

The primary goal is to make keeping call centers in America the more attractive option for businesses, blending economic incentives with stricter regulatory oversight.

What Does This Mean for Your Business Strategy?

For any business leader, this Act is a clear signal: it’s time to take a hard look at your current customer support model. Whether you run an in-house team, partner with an offshore provider, or use a mix of both, these proposed rules are bound to have an impact.

This is the perfect opportunity to ask some tough questions about your setup and start exploring more resilient, compliant, and cost-effective solutions. Getting a handle on the fundamentals of what a BPO call center is can give you a solid starting point for making these critical strategic decisions.

Decoding the Key Provisions of the Act

To get ahead of the Keep Call Centers in America Act of 2025, you have to look past the headlines and dig into the actual rules. This isn’t just one simple command; it’s a mix of incentives, penalties, and new transparency requirements all working together to keep operations on U.S. soil. Breaking these down is the first step toward building a strategy that’s not just compliant, but smart.

Think of the Act as using both carrots and sticks to shift business behavior. This infographic gives you a quick visual of how those pieces fit together.

As you can see, the legislation uses both tax incentives to reward domestic operations and penalties to discourage offshoring.

The ‘Bad Actor’ List and Its Consequences

One of the most talked-about parts of this act is the creation of a public “bad actor” list. It’s exactly what it sounds like: a public list of companies that offshore their call center jobs. A business lands on this list if it moves a call center overseas or sends 30% or more of its total call volume to a foreign provider.

Companies are required to give the Secretary of Labor 120 days’ notice before making such a move. Failure to do so could result in a fine of up to $10,000 per day. Once your company is on that list, it stays there for up to five years, and two major things happen:

• Loss of Federal Funding: Listed companies become ineligible for federal grants or guaranteed loans for five years. For many businesses, that’s a massive financial blow.
• Public Reputational Damage: Being publicly called out can seriously damage customer trust and brand perception. In industries where reliability is everything, that kind of hit can be hard to recover from.

New Transparency Rules for Customer Interactions

The Act also gets very specific about how agents talk to customers. Within a year of the bill passing, every business will need to follow two strict new rules:

1. Location Disclosure: If a customer asks, the agent must disclose their physical location.
2. Transfer Rights: If the agent is outside the U.S., the customer must be informed they have the right to be transferred to a U.S.-based agent immediately.

These transparency rules aren’t just for human agents. They apply to everyone and everything—in-house teams, third-party vendors, and even AI chatbots. This fundamentally changes the game for customer service scripting and call routing.

For example, a fintech company that currently uses a team in the Philippines would have to rewrite all call scripts to include the new disclosures. They would also need a solid process for transferring calls back to a domestic agent without a hitch, adding a new layer of operational complexity. As we cover in our guide on security and compliance in Mexico BPOs, having a strong operational framework is non-negotiable for meeting these kinds of regulatory demands.

How the Act Will Reshape Your Business Operations

The ripple effects of the Keep Call Centers in America Act of 2025 will reach far beyond your compliance department—they’re set to fundamentally change how you run your day-to-day business. For many companies, this legislation triggers a serious rethink of budgets, staffing models, and the technology that keeps customer conversations flowing.

The old math of simply comparing labor costs between countries is out the window. Now, you have to weigh the investment of moving or launching a domestic center against the very real risks of losing federal grants or ending up on a public “bad actor” list.

Imagine a mid-sized e-commerce company that currently sends 40% of its support calls offshore. They’ll have to run the numbers on hiring U.S.-based agents versus potentially losing access to the SBA loans they need to expand. It’s a tough calculation with high stakes.

Navigating a Tighter Domestic Labor Market

One of the first hurdles with onshoring is the U.S. labor market itself. With unemployment for administrative roles low, finding and keeping good agents is more competitive—and more expensive. In many cities, wages are climbing past $20 per hour, which can significantly inflate operational costs.

This reality is forcing businesses to get creative with hiring:

• Tier 2 and Tier 3 Cities: Smaller metro areas often have a lower cost of living and less competition for talent, making them prime real estate for new domestic call centers.
• Remote Work Models: A remote-first model within the U.S. dramatically expands your talent pool, allowing you to hire the best people from anywhere in the country.
• Nearshore Partnerships: For companies seeking a strategic middle ground, nearshoring offers a cost-effective solution with strong cultural alignment, all without the compliance headaches tied to traditional offshoring.

Even with this legislative push for domestic centers, flexible remote work is here to stay. To get the most out of it, check out these strategies for mastering remote customer support.

“The Act isn’t just a push for onshoring; it’s a catalyst for operational innovation. Companies that adapt by embracing smarter staffing and technology will thrive.”

The Accelerated Push for AI and Automation

Higher domestic labor costs make efficiency a top priority. This is where the Keep Call Centers in America Act of 2025 becomes an accidental but powerful driver of new technology. To make U.S.-based operations financially viable, businesses have to invest in tools that make agents more productive and automate repetitive tasks.

The global market for conversational AI is expected to jump from $17.05 billion in 2025 to a massive $49.8 billion by 2031. We’re already seeing that companies using AI-powered tools report a 14% increase in agent resolution rates.

By using AI chatbots to handle basic questions or giving agents real-time info with assist tools, you can manage more customer interactions with a smaller, more effective team right here at home. For more practical tips, dive into our guide on how to reduce operational costs without sacrificing service quality.

The Strategic Role of Nearshore BPO Solutions

The Keep Call Centers in America Act of 2025 draws a pretty clear line in the sand: keep your call centers domestic or face the consequences. But while the bill champions bringing jobs back home, it leaves many business leaders wondering about the middle ground. How can you remain cost-effective without risking compliance or customer experience?

This is exactly where nearshore BPO solutions come into play, offering a powerful and strategic way forward.

Nearshoring isn’t traditional offshoring. Instead of working with a team on the other side of the planet, you partner with a call center just across the border in a place like Tijuana, Mexico. This setup hits a sweet spot, giving you the best of both worlds: significant cost savings without the operational headaches and quality dips that often come with far-shore outsourcing.

Bridging the Gap Between Cost and Quality

Let’s be direct: the primary driver for offshoring has always been cost reduction. The problem is, that often means sacrificing quality. Customers get stuck dealing with huge time zone gaps, frustrating communication barriers, and cultural disconnects.

The Act tries to fix this by pushing for domestic operations, but for many businesses, the cost of running a call center in the U.S. is simply too high.

This is where nearshoring shines. A call center or BPO partner in Tijuana operates in the same time zones as most of the U.S., so your customers get help when they actually need it. The agents are typically bilingual and have a deep, natural understanding of American culture, which makes for smoother conversations that build real trust.

Nearshoring offers a compliant, cost-effective alternative that elevates the customer experience. It aligns with the spirit of the Act by prioritizing quality and seamless communication without the financial strain of purely domestic operations.

Consider this real-world example: an e-commerce brand can use a Tijuana-based team to handle its West Coast customer service. The agents are available in real-time, they understand the cultural nuances of the customer base, and they can solve problems quickly—all at a fraction of the cost of hiring in California. That’s the kind of smart positioning you get when exploring nearshore outsourcing solutions.

Why a Nearshore Partnership Is a Smart Move

The Keep Call Centers in America Act of 2025 is aimed at companies moving jobs far overseas, but nearshore partnerships are a completely different ballgame. They give you a path to operational excellence that makes sense for your customers and your bottom line.

Here’s why nearshoring is such a compelling strategy right now:

• Cultural and Time Zone Alignment: Agents in nearshore hubs like Tijuana are on the same page, culturally and chronologically. This completely eliminates those frustrating delays and misunderstandings for your customers.
• Cost-Effectiveness: You’ll see major savings on labor and operational costs compared to a U.S.-based center. It’s a financially sustainable model that doesn’t force you to compromise.
• Access to a Bilingual Talent Pool: Nearshore locations are a goldmine for skilled, bilingual talent who can effortlessly serve both your English and Spanish-speaking customers.
• Proximity for Collaboration: Being just a short drive from the border makes a huge difference. You can easily visit the site, conduct hands-on training, and build a real partnership—not just a distant vendor relationship.

Building Your Compliance Action Plan

Getting ahead of the Keep Call Centers in America Act of 2025 isn’t just about avoiding penalties. It’s about making smart, forward-thinking decisions that protect your business and improve your customer service. Turning this legislative challenge into a strategic opportunity is all about having a clear, step-by-step framework.

First, conduct a thorough audit of your current call center operations. Get a complete picture of where your agents are, what percentage of your call volume is handled offshore, and which vendors you’re working with.

For example, a retail company might discover that 35% of its support calls go to an offshore partner. Under the Act, this pushes them over the 30% threshold that could land them on the public “bad actor” list. Knowing this now gives them time to adjust their strategy before the law takes full effect.

Evaluate Your Financial and Operational Risks

Once you know where you stand, it’s time to run the numbers. Create a detailed cost-benefit analysis that compares your current model against potential alternatives. Don’t just look at agent salaries; factor in everything from recruitment and training costs to technology infrastructure and any federal funding you might be at risk of losing.

Your evaluation should explore three main scenarios:

• Full Onshoring: Calculate the total cost of bringing all operations to a U.S.-based center, including higher wages, facility expenses, and overhead.
• Hybrid Model: Assess a blended approach that keeps a portion of your operations domestic while using compliant partners for specific tasks.
• Nearshore Partnership: Analyze the cost savings and operational benefits of partnering with a nearshore provider like CallZent. This route often provides the cultural alignment and quality you need without the steep price tag of U.S.-based labor.

A proactive compliance plan is your best defense. It transforms a potential regulatory headache into a strategic opportunity to optimize your customer service operations for the future.

Update Policies and Communication Protocols

Finally, it’s time to update your internal policies and customer-facing scripts to meet the new transparency rules. This is a critical step that impacts daily interactions and requires careful planning across your entire support organization.

Use this checklist to guide your preparations.

Your Compliance Readiness Checklist for the Keep Call Centers in America Act of 2025

Working through this list will ensure you’re not just reacting but actively preparing. Your action items should include:

1. Revising Call Scripts: Update every script with clear disclosures about the agent’s location and the customer’s right to transfer to a U.S.-based rep.
2. Training Your Team: Your agents, both in-house and third-party, need solid training on these new rules so they can handle customer questions correctly and with confidence.
3. Strengthening Vendor Agreements: Review contracts with any BPO partners and amend them to ensure full compliance with the Act. This absolutely includes having a solid grasp on how to ensure data security and compliance across all your partnerships.

By taking these deliberate steps now, you can build a resilient customer support strategy that’s ready for the regulatory landscape of 2025 and beyond.

Your Questions About the Act, Answered

New laws always bring questions. The Keep Call Centers in America Act of 2025 is no different, and business leaders deserve clear answers without wading through legal jargon. Let’s break down the most common concerns.

Does This Act Outright Ban Offshoring?

No, the bill does not ban offshoring. Instead, it creates strong financial and public relations deterrents to make companies think twice about moving call center jobs overseas. The core of the Act is the “bad actor” list for companies that outsource 30% or more of their call volume. Landing on this list results in two major consequences:

• Ineligibility for federal grants and loans for five years.
• Significant public relations damage.
  So, while the door to offshoring isn’t completely shut, the Act makes walking through it a much riskier and potentially more expensive decision.

What Are the Actual Penalties for Not Complying?

The penalties are significant. Failing to provide the Secretary of Labor with the required 120 days’ advance notice before moving operations can lead to a fine of up to $10,000 per day.

Beyond that, if a company on the “bad actor” list already has federal awards, they’ll have to pay monthly penalties. If they’re still on the list after a year, the government can cancel the entire award. Additionally, failing to follow transparency rules—like not disclosing an agent’s location upon request—could trigger FTC action for engaging in an unfair or deceptive practice.

Do These Rules Apply to AI and Chatbots?

Yes, absolutely. The Keep Call Centers in America Act of 2025 was written with technology in mind, and its transparency rules cover automated systems.

If your business uses an AI-powered agent or a chatbot, you must disclose that it’s a bot at the start of the conversation. And just like with a human agent, you must provide customers with an easy way to transfer to a person located in the United States. This provision closes a potential loophole, ensuring automation doesn’t sidestep the law’s intent.

The Act’s inclusion of AI shows some real foresight. It ensures that no matter how technology changes, the core ideas of being transparent with customers and giving them access to U.S.-based support stay in place.

Are Nearshore Locations Like Mexico a Safe Bet?

This is the key question for businesses looking to balance cost and compliance. The Act is aimed squarely at traditional, far-flung overseas offshoring hubs. Nearshore partners, like those in Tijuana, Mexico, are in a completely different strategic league.

Working with a nearshore BPO allows you to maintain the high-quality, real-time customer connection that aligns with the spirit of the Act, but without the sky-high costs of a purely domestic operation. Because nearshore centers are so close in terms of culture and time zones, they naturally solve the very issues the legislation was created to address.

For any company that wants to sidestep the headaches and penalties of the Act while still managing its budget effectively, a nearshore solution is more than just a good idea—it’s a compliant and compelling path forward.

Ready to build a customer support strategy that’s resilient, compliant, and cost-effective? At CallZent, we provide world-class nearshore solutions from our Tijuana center, helping you navigate regulatory changes while delighting your customers. Learn how our bilingual, culturally aligned teams can support your growth. Explore our services at CallZent.com.