GAO Report on Textile Circular Economy, Policy Options for the US

GAO looked at policy options to support a textile circular economy, focusing on how the U.S. can create new jobs and reduce environmental harm by keeping textiles in use longer through reuse, repair, and recycling. The main finding was that current efforts lack funding and infrastructure, prompting consideration of policies such as requiring industry responsibility for waste management, removing sales tax on secondhand apparel, and using tax credits to encourage involvement.

GAO Finds Policy Options for Textile Circular Economy

The Government Accountability Office (GAO) identified policy options to help develop a textile circular economy in the U.S. These include making companies responsible for their products after use through an extended producer responsibility program and offering tax credits to businesses that contribute to recycling or reducing waste. Stakeholders, including industry groups, suggest a federal approach might be preferable as it could facilitate coordination across states or countries but would need additional resources and legal authority.

Why GAO Looked Into It

GAO was asked to review aspects of developing a textile circular economy by certain U.S. states and other countries in response to global increases in textile consumption and waste, aiming to establish policies that foster a sustainable industry. This report builds upon previous work from December 2024 on federal efforts to address textile waste. GAO examined legislation, regulations, federal agency documents, academic reports, and interviewed stakeholders including government entities, industry representatives, academia, and nonprofit organizations involved in the development of a textile circular economy. GAO also conducted site visits to Washington and Oregon states, France, and the Netherlands to gather insights from private sector organizations engaged in various aspects of this economic model.

GAO made no recommendations in this report.

The full report, Textile Circular Economy: Policy Options for the U.S., is on GAO’s site, publicly released Oct 16, 2026.