The USDA has announced payments for 2026 through the Pima Agriculture Cotton Trust Fund and the Agriculture Wool Apparel Manufacturers Trust Fund, providing financial support to U.S. textile manufacturers facing ongoing global trade challenges. These programs are designed to offset the effects of tariff inversion, a policy structure that can make it more cost-effective to move production overseas and import finished goods rather than manufacture domestically. The trust payments help level the playing field by compensating U.S. companies as if favorable duty reductions were still in place, enabling them to expand production, support jobs, and remain competitive. “U.S. textile companies produce world-renowned quality products and employ a highly skilled workforce,” said Deputy Ag Secretary Stephen A. Vaden. “These payments strengthen our domestic manufacturers and ensure a fair playing field for American textiles.” The Pima Cotton Trust, established under the 2014 Farm Bill, provides $16 million annually through 2031 to support domestic cotton manufacturers.
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