GAO identifies policy options for U.S. textile circular economy

The Government Accountability Office released a report identifying policy options for developing a textile circular economy in the U.S. The report was published on Friday 16 October 2026.

The GAO identified policy options based on relevant literature, site visits, and interviews with 49 stakeholders in the public and private sectors. The stakeholders included government entities, industry groups, academia, and nonprofit organizations. Two of the identified policy options are developing a textile extended producer responsibility program and creating tax credits related to a textile circular economy. An extended producer responsibility program makes companies responsible for what happens to their products after use. Tax credits reduce or offset the amount of taxes paid by businesses when they contribute to textile circularity efforts.

The report found potential benefits could include creating new jobs and markets related to textile repair and recycling, reducing environmental harm, and changing consumer practices. Challenges could include limited funding and domestic infrastructure for nationwide textile collection and recycling efforts.

Some U.S. states and other countries are proposing, enacting, or implementing most of the identified policy options. Several stakeholders told the GAO they prefer a federal approach to develop a textile circular economy. A federal approach may provide for coordination, compliance, and consistent implementation across U.S. states or other countries' legal requirements, according to these stakeholders. However, this would require additional federal coordination and resources and depend on the government's legal authority to implement a federal approach.

The textile industry is part of a massive, global economic sector including fiber sourcing, yarn production, and textile manufacturing. Textiles include apparel and other products such as carpets, footwear, and towels. In response to global increases in the amount of textile consumption and waste, certain U.S. states and other countries have begun to consider and implement policies that can help develop a textile circular economy.

The GAO reviewed legislation, regulations, federal agency documents, and academic reports. The GAO also conducted site visits to the states of Washington and Oregon, as well as France and the Netherlands. This report continues the GAO's previous work from December 2024 on federal efforts to address textile waste.