Senate and House Democrats are working to restore the IRS’s Direct File program, which ended last fall under the Trump administration. Sen. Elizabeth Warren from Massachusetts and Rep. Brad Sherman from California have introduced the Direct File Act. This bill would make the free online filing platform permanent and require the IRS to operate it.  

According to Accounting Today, the IRS tested Direct File in 12 states in 2024 and expanded it to 25 states in 2025, but ended the program in November. The new bill would prevent the IRS from making agreements that restrict free online filing, require annual reports on how people use the system, and have the IRS link Direct File with state tax systems. It also aims to reduce tax fraud by making sure the IRS receives third-party income information earlier in the tax season. 

“It’s a no-brainer: Americans should be able to file their taxes easily and for free,” Warren said in a statement. Sherman added that the bill “offers a straightforward, no-cost filing option that will make the process simpler and more affordable for working families.” 

Supporters note that 94% of people who used the pilot program rated their experience as “excellent” or “above average.” They say that if Direct File is fully launched, it could save families billions of dollars in time and fees.