The U.S. Department of Agriculture announces payments under the 2026 Pima Agriculture Cotton Trust Fund and the 2026 Agriculture Wool Apparel Manufacturers Trust Fund. The U.S. textile industry has historically enjoyed strong support and assistance from the U.S. Government; however, various trade agreements and other unfair practices during the last 20 years have resulted in a decline not just in textiles, but across domestic manufacturing in general.
Currently, U.S. fabric and clothing manufacturers must comply with a tariff inversion — a tariff policy that reduces the cost of moving production overseas and exporting finished goods back into the United States compared with importing fabric and manufacturing domestically. The annual Pima Cotton and Wool trust payments provide financial support to U.S. companies equal to the benefits manufacturers would receive if duty reductions remained in effect, allowing them to grow payrolls, increase production, and regain market share.
“U.S. textile companies produce world-renowned quality products and employ a highly skilled workforce,” said Deputy Secretary of Agriculture Stephen A. Vaden. “These payments strengthen our domestic manufacturers and ensure a fair playing field for American textiles, helping rebuild this important industry. More American companies should take advantage of this program and manufacture more of the clothing we all wear here in the U.S.A.”
Section 12314 of the 2014 Farm Bill established the Pima Cotton Trust, which USDA administers. The Pima Cotton Trust is currently funded through 2031 with $16 million in Commodity Credit Corporation funds each year.
The purpose of the Pima Cotton Trust is to reduce the economic injury to domestic cotton manufacturers resulting from tariffs on cotton fabric that are higher than tariffs on certain apparel articles made of cotton fabric.
The law mandates payments under the Pima Cotton Trust as follows:
- 25 percent to one or more nationally recognized associations established for the promotion of Pima cotton for use in textile and apparel goods.
- 25 percent to yarn spinners of Pima cotton that produce ring-spun cotton yarns in the United States.
- 50 percent to manufacturers that cut and sew cotton shirts in the United States and that certify that they used imported cotton fabric in the preceding year.
Section 12315 of the 2014 Farm Bill established the Wool Trust, which USDA also administers. The Wool Trust is currently funded through 2031 with up to $30 million in CCC funds per year.
The purpose of the Wool Trust is to reduce the injury to domestic manufacturers resulting from tariffs on certain wool fabric that are higher than tariffs on certain apparel articles made of wool fabric.
The Wool Trust provides four types of payments:
- Payments to manufacturers of certain worsted wool fabrics.
- Monetization of the wool tariff-rate quota.
- Duty compensation payments for wool yarn, wool fiber and wool top.
- Refunds of duties paid on imports of certain wool products.
March 15 of each year is the application deadline for the Pima Cotton Trust, and March 1 of each year is the application deadline for the Wool Trust. The law mandates trust payments by April 15. More information about these programs is available at www.fas.usda.gov/programs.
