GAO Outlines Policy Options to Support a Textile Circular Economy in the U.S.

The U.S. Government Accountability Office released a report on Oct. 16, 2026, identifying policy options that federal and state policymakers could consider if the U.S. chooses to develop a textile circular economy, in which reuse, repair and recycling keep textiles in use longer.

According to GAO, options include a textile extended producer responsibility program, which would make companies responsible for what happens to their products after use, and tax credits for businesses that contribute to textile circularity efforts. GAO also listed removing sales tax on secondhand apparel among the options.

GAO said potential benefits could include new jobs and markets in textile repair and recycling, reduced environmental harm and changes in consumer practices. Challenges could include limited funding and domestic infrastructure for nationwide collection and recycling.

Some U.S. states, the European Union and other countries have proposed, enacted or implemented most of the identified options, according to GAO. Several stakeholders, including industry groups, told GAO they prefer a federal approach for consistency and coordination. GAO said such an approach would require additional federal coordination and resources and would depend on the government's legal authority.

GAO based the report on literature, interviews with 49 stakeholders and site visits to Washington, Oregon, France and the Netherlands. The report builds on GAO's December 2024 work on textile waste.

Source: U.S. Government Accountability Office.

Originally published by True News: https://truenews.bagleyenterprises.net/stories/166