GAO Report Outlines Federal and State Options for a U.S. Textile Circular Economy

The Government Accountability Office released a report that details policy options for developing a textile circular economy in the United States, providing guidance for federal and state decision-makers. The analysis builds on GAO work from December 2024 and draws on interviews with 49 public- and private-sector stakeholders.

The report identifies two primary options: establishing a textile extended producer responsibility program that makes manufacturers accountable for post-use product handling, and creating tax credits that offset taxes for businesses that engage in textile reuse, repair, or recycling. Stakeholders noted that a federal approach could ensure coordination, compliance, and consistent implementation across states, though it would require additional federal resources and legal authority.

Potential benefits highlighted include the creation of new jobs and markets related to textile repair and recycling, reduced environmental harm, and shifts in consumer practices. Challenges cited are limited funding and the lack of a nationwide infrastructure for textile collection and recycling. The GAO observed that several U.S. states, the European Union, and other jurisdictions have proposed or enacted legislation resembling the identified options.

Site visits were conducted in Washington and Oregon, as well as in France and the Netherlands, to meet with private-sector organizations involved in textile circularity. The report also references ongoing state initiatives and international examples that could inform U.S. policy development.

For additional information, contact J. Alfredo Gómez at gomezj@gao.gov.