On March 4, 2026, Federal Communications Commission (FCC) Chairman Brendan Carr floated a sweeping proposal targeting the offshoring of American call center operations. A few weeks later at its Open Meeting on March 26, 2026, the FCC unanimously adopted the proposal in a Notice of Proposed Rulemaking (NPRM) filed under CG Docket No. 26-52.
The NPRM was officially published in the Federal Register on April 23, 2026, triggering the formal comment period. The rulemaking was initiated as part of FCC Chairman Brendan Carr’s “Build America Agenda” in response to the fact that nearly 70% of U.S. businesses outsource at least one department — including customer service operations — to foreign locations.
The FCC identified three core problems driving the rulemaking: (1) consumer frustration stemming from language and cultural barriers; (2) privacy, data protection, and national security risks associated with offshore call centers accessing sensitive U.S. consumer data; and (3) the use of foreign call centers as hubs for illegal robocall and fraud operations targeting American consumers.
Covered Entities Under FCC Proposal
The proposed rules would apply to providers of telecommunications services, Commercial Mobile Radio Service (CMRS), interconnected VoIP, cable television, and Direct Broadcast Satellite (DBS) services, as well as their affiliates and third-party vendors. Notably, the NPRM also seeks comment on whether coverage should be extended to all calls subject to the Telephone Consumer Protection Act (TCPA), which could significantly expand the universe of affected parties beyond traditional communications providers.
Key FCC Proposals
The NPRM sets forth three main proposals to address the core problems outlined above.
- Mandatory Onshoring and Customer Service Requirements
- Offshore call volume cap: The FCC proposes limiting the percentage of customer service calls that may be routed to foreign call centers, using 30% as an illustrative benchmark, while seeking comment on whether a higher or lower threshold is appropriate and on what measurement period (annual, quarterly, monthly, or daily) should apply.
- English proficiency: Offshore call center staff would be required to be proficient in both spoken and written American Standard English, including tone, idioms, and cultural context; the NPRM seeks comment on applicable testing regimes.
- Mandatory call disclosure: At the start of every call handled offshore, providers would be required to inform customers that their call is being handled outside the United States and identify the country of the call center.
- Right to transfer: Customers would also have the right to request immediate transfer to a U.S.-based representative, with transfer wait times no longer than those for domestic calls.
2. Sensitive Transaction and Data Security Protections
- Domestic-only sensitive transactions: Any call or communication — regardless of channel (voice, text, chat, or email) — involving access to or transmission of sensitive consumer data (passwords, multifactor authentication information, Social Security numbers, bank account or credit card information) would be required to be handled exclusively by U.S.-based call centers.
- Foreign adversary prohibition: The NPRM proposes a hard prohibition on using call centers located in “foreign adversary” nations as defined by Commerce Department regulations, including China, Russia, Iran, North Korea, Cuba, and Venezuela.
3. Robocall Deterrence
- Bond and fee requirements: The FCC seeks comment on requiring international gateway providers that transmit calls from foreign countries to the U.S. to post bonds, with questions about bond amounts, drawdown triggers, and replenishment obligations.
- Tariff mechanisms: As an alternative to bonds, the FCC seeks comment on government-imposed fees on unlawful foreign-originated call traffic.
Compliance and Reporting
In addition, covered providers would be required to track and report to the FCC their compliance with all adopted rules, including English proficiency testing results, call volumes by location (domestic vs. foreign), transfer rates, wait times, and dropped call data. The FCC also proposes amending its broadband consumer label rules to require disclosure of the percentage of customer service calls handled by U.S.-based representatives.
Applicable Comment Periods
Industry Response and Approval Timeline
The Communications Workers of America (CWA) acknowledged that the NPRM “contains key elements modeled on CWA’s policy” but stated the FCC’s approach is “insufficient in achieving the public’s goals of bringing good jobs back to our communities, improving customer service, and protecting consumer data and privacy.”
Industry stakeholders — particularly those that rely on offshore call center contractors — have been advised to map their offshore call center footprint, review third-party call center contracts for potential agency liability exposure, and monitor parallel legislative activity as the proceeding develops.
There is no established timeline for a final rule at this stage, as the FCC will review all initial and reply comments before determining whether to proceed with final rulemaking, modify proposals, or issue a further notice. Parallel legislative activity in Congress — including the bipartisan Keep Call Centers in America Act of 2025 and the Foreign Robocall Elimination Act may also influence the final form of any adopted rules.
