Federal cotton and wool funds help protect US textile manufacturing
The United States Department of Agriculture has announced payments under the 2026 Pima Cotton Trust Fund and the 2026 Wool Apparel Manufacturers Trust Fund. These programs support American textile and clothing manufacturers affected by long standing trade challenges.
For many years, US textile producers have faced a tariff imbalance. In many cases, importing finished clothing into the United States costs less than importing fabric and making the garments domestically. This situation, known as tariff inversion, encourages companies to move production overseas.
“U.S. textile companies produce world-renowned quality products and employ a highly skilled workforce. “These payments strengthen our domestic manufacturers and ensure a fair playing field for American textiles, helping rebuild this important industry,” said Deputy Secretary of Agriculture Stephen A. Vaden.
“More American companies should take advantage of this program and manufacture more of the clothing we all wear here in the U.S.A,” said Vaden.
To address this issue, the government provides annual trust fund payments. These payments are designed to balance the cost gap and support businesses that keep manufacturing jobs in the United States. The goal is to help companies grow their workforce, increase production, and stay competitive.
The Pima Cotton Trust was created under the 2014 Farm Bill and is funded with sixteen million dollars each year through 2031. The fund supports three main groups. A portion goes to organizations that promote Pima cotton.
Another portion supports yarn spinners who produce cotton yarn in the United States. The largest share supports manufacturers who cut and sew cotton shirts domestically.
The Wool Trust, also created in the 2014 Farm Bill, is funded with up to thirty million dollars each year through 2031. It offers support through four payment types, including compensation for wool fabric manufacturers, duty refunds, and programs tied to wool imports.
Applications for the Pima Cotton Trust are due by March 15 each year. Wool Trust applications are due by March 1. By law, payments must be made by April 15.
These programs help ensure that American textile companies remain strong and competitive while supporting skilled workers and domestic production.