See article below also; there are also other lower cost / free options like FreeTaxUSA, TaxAct etc.
Direct File didn't have that many users according to this article, and it's expensive to develop and maintain a fully functional filing infratstructure which tax prep companies make profitable by selling premium services.
https://www.usatoday.com/story/money/personalfinance/2025/11/06/direct-file-killed-free-taxes/871311...
Just under 141,000 returns were filed during the tax year 2023 pilot program with a dozen states. The next year with 25 states participating, 296,531 returns, or less than 0.5% of approximately 146 million total returns, were filed. Yet, the program cost taxpayers at least $41 million, or at least $138 per return, the report said.
