By Jamie Martin
The US Department of Agriculture has announced its 2026 payments under two important programs: the Pima Cotton Trust Fund and the Wool Apparel Manufacturers Trust Fund. These programs support American textile and apparel manufacturers impacted by costly trade policies.
Over the past two decades, many US manufacturers have struggled due to tariff inversion. This policy makes it cheaper to import finished clothing than to manufacture items in the United States using imported fabric. As a result, many companies shifted 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.
The annual trust fund payments help counter this challenge by providing financial relief. The support is equal to the benefits companies would receive if tariff reductions were still in place. This allows manufacturers to invest in workers, expand production, and compete fairly.
The Pima Cotton Trust provides sixteen million dollars per year through 2031. Funds are divided among cotton promotion organizations, domestic yarn spinners, and US manufacturers that cut and sew cotton shirts using imported fabric.
The Wool Trust offers up to thirty million dollars annually through 2031. It includes payments for wool fabric manufacturers, compensation for duties paid, and support tied to wool imports and quotas.
Manufacturers must apply by March deadlines each year to receive payments. By law, funds are distributed by mid-April.
Together, these programs reflect a broader effort to support American manufacturing, protect skilled jobs, and strengthen the domestic textile industry for the future.
Categories: National