A new proposal in the United States Congress could threaten thousands of jobs in the Philippines’ multibillion-dollar business process outsourcing (BPO) sector — a vital pillar of the country’s economy and a major source of foreign revenue.
The Keep Call Centers in America Act of 2025 (S. 2495) seeks to discourage American companies from moving their customer service operations overseas. The measure would penalize firms that offshore more than 30% of their call center activities through fines, funding restrictions, and public disclosure requirements.
Under the proposal, the U.S. Secretary of Labor would be directed to publish a “Do Not Reward” list identifying companies that outsource call center jobs abroad. Businesses placed on this list would lose eligibility for federal grants, loans, and contracts for up to five years — unless they bring an equivalent number of jobs back to the United States.
The bill also requires companies to inform customers if their calls are being handled by overseas agents and to give them the option to speak with a U.S.-based representative. Firms that use artificial intelligence in customer service would need to make similar disclosures, or face penalties of up to $10,000 per day for non-compliance.
Analysts warn that the proposed law could undermine one of the strongest economic links between Washington and Manila. The Philippine BPO industry, valued at around $35 billion, employs nearly two million workers, with about 70% of its business tied to American clients. The sector contributes roughly 9% of the country’s GDP and has long been considered a backbone of the services economy.
The IT & Business Process Association of the Philippines (IBPAP) said it is closely monitoring developments in the U.S. Senate.
“We need to understand it a little bit more. I think I know what their intention is, but I don’t know the likelihood of this passing,” IBPAP President and CEO Jonathan Madrid said during an industry event. “Obviously, it is something we are monitoring… we need to study it more.”
Madrid said the organization has been coordinating with the American Chamber of Commerce to assess the potential effects and prepare local stakeholders for possible scenarios.
Economists say the measure could have far-reaching consequences.
“The proposed bill poses a clear risk to the Philippine IT-BPM industry, especially in the call center segment,” said John Paolo Rivera, a senior research fellow at the Philippine Institute for Development Studies.
If enacted, the law could force U.S. companies — particularly those that rely on federal contracts — to scale back outsourcing to maintain government funding eligibility, threatening one of the Philippines’ most resilient industries.
The bill, introduced in the U.S. Senate last month, is still in the early stages of the legislative process. Industry leaders in both countries say they are hopeful that ongoing discussions will highlight the mutual benefits of maintaining cross-border business operations.
