The Trump Administration to end Direct File, which allows 1.7 million Arizona taxpayers to file their taxes for free
WASHINGTON – In response to recent reporting that the Trump administration plans to end the Direct File program, Senator Ruben Gallego (D-AZ) joined over 175 Congressional Democrats demanding the administration reverse course and commit to preserving and expanding the program.
Direct File is a free, easy-to-use tax filing program that has already delivered significant benefits to taxpayers. In 2024, during the program’s pilot phase, Direct File saved the average user $160 in tax return fees and hours of effort preparing their return. Despite its popularity, the tax prep industry has fought Direct File at every turn, spending millions on lobbying to kill the program and encouraging Republican members of Congress to do the same.
“Ending this free, easy-to-use, and popular program would be an insult to American taxpayers, eliminating an important alternative to commercial options provided by the tax prep industry,” wrote the lawmakers in a letter to Treasury Secretary Scott Bessent and Acting IRS Commissioner Michael Faulkender. “It’s no secret why: a free, easy-to-use tax filing program requires the [tax prep] industry to compete for taxpayer business and is a direct threat to the industry’s bottom line.”
Even before reports that the Trump administration planned to end Direct File, the administration had already sabotaged the program during its time in office. This filing season, the Trump administration fired the team at the Treasury Department that had been running awareness campaigns about Direct File, scaled back communications promoting the program, and did little to partner with local groups and media outlets to promote the program. In February, Elon Musk, the head of the Department of Government Efficiency (DOGE), tweeted that the team that helped build Direct File, “has been deleted.” While Direct File remained operational after Musk’s tweet, “Direct File usage immediately fell by roughly one quarter.”
“The Trump Administration’s dismantling of a program that makes tax filing easier and free for millions of Americans is shameful. Taxpayers have spoken loudly and clearly: Direct File works well for them, and more Americans want access to it,” concluded the lawmakers.
Arizona was one of just 12 states selected to pilot the Direct File program last year. Following its success in the state, Senator Gallego called for its nationwide expansion.
Read the full letter HERE.
Senator Gallego is fighting for tax policy that supports working people over billionaires. He’s backing legislation to expand the Child Tax Credit, boost the Earned Income Tax Credit (EITC), help families afford childcare, deliver tax cuts for veterans, and ensure the ultra-rich do not get richer at the expense of working people.
4/22/25