WASHINGTON, D.C. — Federal officials are issuing payments to U.S. textile manufacturers to offset trade-related disadvantages and support domestic production of cotton and wool goods.
What This Means for You
- Federal payments aim to support U.S.-based textile manufacturing jobs
- Programs offset trade policies that make overseas production cheaper
- Eligible companies must meet strict criteria to receive funds
The U.S. Department of Agriculture announced 2026 payments under two federal programs designed to assist domestic manufacturers: the Pima Agriculture Cotton Trust Fund and the Agriculture Wool Apparel Manufacturers Trust Fund.
These programs provide financial support to companies affected by tariff inversion — a trade dynamic where it is cheaper to manufacture goods overseas and import finished products than to produce them domestically.
How the Programs Work
The Pima Cotton Trust, established under the 2014 Farm Bill, distributes $16,000,000 annually through 2031 to support segments of the domestic cotton supply chain.
Funds are allocated as follows:
- 25 percent to organizations promoting Pima cotton
- 25 percent to U.S.-based yarn spinners producing ring-spun cotton
- 50 percent to manufacturers cutting and sewing cotton shirts using imported fabric
The program is intended to offset higher tariffs on imported cotton fabric compared to finished apparel, which can disadvantage U.S. manufacturers.
The Wool Trust, also created under the 2014 Farm Bill, provides up to $30,000,000 annually through 2031 to support domestic wool manufacturers.
Payments under the Wool Trust include support for wool fabric producers, tariff-rate quota monetization, duty compensation for wool materials, and refunds for duties paid on certain imports.
Industry Impact
Federal officials said the payments are intended to help domestic manufacturers maintain operations, expand production, and compete globally.
“U.S. textile companies produce world-renowned quality products and employ a highly skilled workforce,” said Deputy Secretary of Agriculture Stephen Vaden.
The programs are designed to reduce financial strain caused by trade policies and to stabilize employment in the textile sector.
Next Steps
Applications for the Pima Cotton Trust are due March 15 each year, while Wool Trust applications are due March 1. Payments are issued by April 15.
More information is available at https://www.fas.usda.gov/programs.
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