The US Government Accountability Office has laid out policy options for building a textile circular economy, including extended producer responsibility programmes and tax credits tied to reuse and waste reduction. In an October 2026 report drawing on interviews with 49 stakeholders and site visits in Washington, Oregon, France and the Netherlands, the agency said circularity could support repair and recycling jobs but faces hurdles from the lack of nationwide collection and processing infrastructure. Stakeholders were split on whether Washington or individual states should lead, with several industry groups favouring a federal approach for consistency.
According to www.just-style.com, the US Government Accountability Office (GAO) has outlined a set of policy options — including extended producer responsibility (EPR) programmes and circularity-linked tax credits — that could support a textile circular economy in the United States, while flagging the absence of nationwide collection and processing systems as a practical hurdle.
Watchdog maps options for textile circularity
In its October 2026 report, the GAO said a textile circular economy relies on repair, reuse and recycling to extend material use. The agency said a shift toward circularity in textiles could support new jobs and markets linked to repair and recycling, help reduce environmental harm, and influence consumer practices.
At the same time, the watchdog said stakeholders pointed to practical hurdles, notably the absence of nationwide systems and facilities to collect and process textiles, alongside funding limitations. The report defines textiles to include apparel as well as products such as carpets, footwear and towels, and links the policy discussion to rising levels of textile consumption and waste globally.
The GAO identified a “number of policy options” based on a review of relevant literature, site visits and interviews with 49 stakeholders from across the public and private sectors. The report was produced after the agency was asked to examine how a textile circular economy could be developed in the US.
EPR and tax credits among leading options
Among the options, the GAO highlighted extended producer responsibility programmes for textiles, which would make companies responsible for what happens to products after use, alongside other requirements. Another option flagged by the agency was the use of tax credits linked to textile circularity.
According to the agency, such credits are designed to “reduce or offset the amount of taxes paid by businesses” when they take steps such as reusing textiles or reducing textile waste. The GAO said “some US states and other countries are proposing, enacting, or implementing most of the identified policy options” that could support the development of a textile circular economy.
It pointed to activity in US states and in the European Union, among others, where legislation has been proposed or enacted to establish textile EPR programmes. The agency’s evidence-gathering included site visits in Washington and Oregon, as well as travel to France and the Netherlands, where it met private-sector organisations involved in various aspects of textile circularity.
Stakeholders split on federal versus state leadership
Stakeholders interviewed for the review also weighed in on whether action should be led federally or left to states. Several, including industry groups, said they would prefer a federal approach, arguing it could support coordination, compliance and consistent implementation across states.
A federal approach, those stakeholders argued, would also help businesses navigate other countries’ legal requirements. The agency added that a nationally led model would still require additional coordination and resources, and would depend on the federal government’s legal authority to put such an approach in place.
The review drew on legislation, regulations, federal agency documents and academic research, alongside interviews with 49 stakeholders across government, industry, academia and non-profit organisations. The October 2026 report follows the GAO’s previous work from December 2024 on federal efforts to address textile waste.
Source: Just Style
Compiled from international media by the SCI.AI editorial team.
