WASHINGTON, DC – USDA is issuing payments under the 2026 Pima Cotton and Wool Trust Funds, providing financial support to domestic textile manufacturers and helping sustain demand for U.S.-grown cotton and wool.
The programs, authorized under the 2014 Farm Bill, are designed to offset trade-related disadvantages facing U.S. manufacturers, particularly tariff structures that favor the import of finished goods over domestic production. Payments aim to strengthen the domestic supply chain by supporting yarn spinners, fabric producers, and apparel manufacturers.
For agriculture, the impact runs upstream. Stronger domestic textile production helps maintain demand for Pima cotton and wool, supporting prices and market stability for producers. The Pima Cotton Trust distributes $16 million annually, while the Wool Trust provides up to $30 million per year through 2031.
Funds are allocated across industry segments, including cotton promotion, yarn spinning, and apparel manufacturing, as well as wool fabric production and import duty offsets.
Maintaining domestic processing capacity is a key concern, as long-term declines in U.S. textile manufacturing have reduced direct market channels for fiber producers.
Farm-Level Takeaway: Textile support programs help sustain demand for U.S. fibers.