Textile EPR: What the 2026 policy outlook means for US fashion companies
Textile Extended Producer Responsibility (EPR) is no longer a distant_ future policy concept. With growing awareness and policy debate about the scale and challenges of textile waste across the United States_ more and more states are looking to implement textile EPR. A policy that would make producers and importers responsible for managing textiles from production through end of life_ textile EPR schemes are already being rolled out across Europe_ with France and the Netherlands leading the way_ it's clear that the policy is rapidly becoming an operational reality that US fashion brands_ retailers_ and textile producers can no longer afford to just monitor passively.
The main takeaway from a recent webinar organized by the American Circular Textiles (AMCIRC)_ a coalition of industry members working to advance national textile policies that support domestic production_ supply chain resilience_ and circular growth_ AMCIRC_ together with a panel of experts_ examined the 2026 outlook for state-level textile EPR legislation in the United States. With California passing the country's first textile EPR law in September 2024_ the Responsible Textile Recovery Act (SB 707)_ and Washington and New York actively exploring similar legislation_ plus the preparation for mandatory textile EPR by 2028_ American brands are facing a convergence of regulatory pressure across major markets.
"Companies don't just need supportive policies. They need support navigating policy and a collective seat at the table_" pointed out Rachel Kibbe_ founder and CEO of American Circular Textiles_ during the webinar. For the US fashion industry_ the question is no longer if textile EPR will expand across the country_ but rather how quickly other states will follow_ how consistent legislation will be_ and how prepared companies will be when it does.
Why Textile EPR is gaining momentum now
The current push for textile EPR policy is closely tied to the reality of textile waste. Globally_ an estimated 92 million tons of textile waste are generated each year. The United States alone generates 17 million tons of textile waste annually_ with roughly 85 percent ending up in landfills or incinerators_ according to EPA data from 2018. The equivalent of one garbage truck per second. Less than one percent of that is recycled back into new textile products.
The rise of textiles has become one of the fastest-growing waste streams in the US_ costing local governments and taxpayers billions of dollars in disposal and environmental management. Today_ policymakers increasingly view EPR as a key mechanism to help shift that financial burden from municipalities to textile producers_ while also incentivizing reuse_ repair_ and recycling infrastructure. "The goal of EPR is to move responsibility for textiles at end of life from taxpayers to producers_ while financing reuse_ repair_ and recycling at scale_" said Kibbe.
California Sets the US Precedent for Textile EPR
In September 2024_ California enacted the Responsible Textile Recovery Act_ making it the first state in the country to adopt a comprehensive textile EPR law. Under the legislation_ apparel and textile producers selling into California will be required to join a single_ state-approved Producer Responsibility Organization (PRO). That PRO will design_ fund_ and operate a statewide system for the collection_ reuse_ repair_ and recycling of covered textile products.
The legislation focuses on reuse and repair_ as well as recycling_ and introduces eco-modulated producer fees_ requiring investment in infrastructure and consumer education. At the same time_ producers will not be charged fees until an EPR plan is approved and a PRO selected. CalRecycle is scheduled to approve a PRO as early as March 2026_ with producers registering with the chosen PRO as soon as July 2026. For many textile and apparel companies_ California will serve as their first practical exposure to textile EPR compliance. "Virtually everybody is going to be affected by California. It's a huge market_ a big state. California will be instructive as to how new legislation in other states might pan out_ and you will get experience in how that works because almost everyone selling nationally will be affected by it_" pointed out one of the webinar panellists_ Shelia Millar_ lawyer and partner at Keller & Heckman LLP.
Washington & New York: Textile EPR policy in motion_ not just copy-paste
The state of California may be the first to introduce textile EPR_ with plan implementation and producer fee payments scheduled to start by July 2030_ but it is certainly not alone. Lawmakers in the states of Washington and New York are actively considering textile EPR legislation_ with a clear focus on learning from California's experience.
Panelist and Washington State Representative Christine Reeves_ one of the sponsors of House Bill 1420_ the state's textile EPR_ noted that one aspect policymakers are grappling with is how to balance ambition with feasibility. When asked if she hoped to get the bill passed in a year_ she responded: "I think any legislator who tells you they don't want to get their bill passed in a year_ probably is not in the right job. Of course_ I want to get legislation passed. That's the symbol of success in the market. But I'm willing to kill bills that aren't right yet. We've got to get it right. Intent is great_ but implementation matters."
In addition to developing scalable systems_ industry stakeholders have raised a recurring concern about fragmented_ state-by-state compliance requirements_ with different definitions of what's covered and what's not. "Our concern is that if we come up with a state-by-state solution_ ultimately compliance is going to become so burdensome_ because every state's going to have a different idea about how to comply with EPR_" added Reeves. She acknowledged that the feedback they've received from stakeholders has directly shaped the bill's evolution. "What I heard from companies was not that they didn't want to comply_" she said_ "but that compliance can't become so burdensome that it breaks the system."
The EPR business reality: costs_ complexity_ & uncertainty
Legal experts and panelist Millar stressed that while EPR is often framed as the "polluter pays_" the financial reality behind the framework is much more complex. Implementing textile EPR does cost money_ and someone ultimately bears the cost. "Costs are going to go up_" said Millar. But clarity around how much and how that cost will be often remains elusive in many states. "The two things that are anathema to business are uncertainty and inconsistency_" she continued. "Even when companies support the concept of EPR_ unclear definitions and shifting requirements make compliance extremely difficult."
Differences in how states define "covered products" and "producers" create additional challenges for national and global brands. For example_ in California_ the bill includes a specific list of items covered_ including clothing_ footwear_ and accessories_ but the legislative language says it includes only those defined items_ making it debatable if this also means the lining in suitcases. In New York_ the definition of apparel and textiles is similar to that in California_ but it includes the language 'includes but is not limited to.' Inconsistent legislative language may prove more disruptive than the fees themselves.
Repair_ reuse_ & recycling_ opportunities under constraints
Policymakers consistently highlight repair and reuse as preferred outcomes under textile EPR_ but panelists were candid about the infrastructure gap. "We can have the best intent_" said Reeves_ "but if implementation doesn't match impact because the infrastructure isn't there_ we actually end up doing harm instead of good." Repair services across the country remain fragmented_ and skilled labor is limited; recycling infrastructure for blended or chemically treated textiles is still emerging.
For many_ chemical recycling remains controversial_ but several speakers acknowledged it may be necessary for certain material streams."It's hard to recycle materials_ and anything that we can do to enhance any type of recycling is likely to be beneficial from a public policy standpoint_" pointed out Millar. At the same time_ overcoming the stigma linked to reuse and thrift shopping is another impact point in textile EPR that needs to be addressed. Buying second-hand is "not cool if you're poor_ or black or brown_ but it's exciting if you're labelling it as vintage or saying you're doing your environmental part in other communities_" said Reeves. "The work we've got to do as we think about who's solving this problem matters to us is how we integrate both of those things."
International examples offer potential insights into how EPR can actively shape consumer behavior and market development. France's long-running textile EPR program_ in place since 2008_ includes consumer repair incentives funded through producer fees_ offering partial reimbursements for garment repairs such as mending_ tailoring_ or zipper replacements. The goal is not only to extend product life_ but to normalize repair as part of everyday consumption.
As panelist Andriana Kontovrakis_ Director of EPR Solutions at Reverse Logistics Group_ pointed out during the webinar_ these types of solutions clearly demonstrate how EPR can move beyond waste management and into behavior change. Incentives tied to repair and durability can help "shift value back into products that are designed to last_ rather than those designed for quick replacement_" explained Kontovrakis.
Five steps brands should take now to prepare for Textile EPR
Although many details remain undecided_ the direction of textile EPR in the US is clear: it's coming_ and producers will be responsible not only for funding end-of-life systems_ but for adapting their operations to support reuse_ repair_ and circular outcomes at scale.
The uncertainty linked to the policy is precisely why companies must start preparing now_ noted Kontovrakis. Businesses that delay action until regulations are finalized risk higher compliance costs_ rushed implementation_ and greater operational disruption.
Rather than waiting for each state to introduce its own textile EPR_ Kontovrakis recommends that brands and textile producers begin laying the groundwork now. "Starting early saves time_ money_ and risk_" she noted_ adding that textile EPR compliance is fundamentally about data_ governance_ and long-term systems_ not last-minute reporting. In the webinar_ she outlined five foundational steps she recommended companies should start addressing today_ regardless of where final legislation lands.
- Map obligations & define responsibilities Understand where you sell_ in which markets_ which products are covered_ and where textile EPR is emerging.
- Establish clear internal ownership Appoint a textile EPR lead with authority across legal_ sustainability_ supply chain_ and design teams.
- Prepare your data systems Sales and material data drive textile EPR compliance. Companies should collect what data they have_ know who owns it_ and how it is updated before curating it and managing it.
- Integrate Textile EPR into design & sourcing "Eco-modulation turns design decisions into financial decisions_" said Kontovrakis_ making early alignment essential.
- Operationalize compliance Textile EPR is ongoing_ not a one-off. Reporting calendars_ regulatory tracking_ and budget forecasting must become standard practice.
From voluntary circularity to mandated accountability The fashion industry has spent years piloting voluntary sustainability initiatives. The emergence of textile EPR marks a decisive shift toward mandated accountability_ in which end-of-life responsibility is enforced by law. For fashion brands and manufacturers in the US_ the next few years will test more than compliance; they will also test their strategic foresight.
"Textile EPR doesn't just check a regulatory box. It forces companies to build the foundation for a more resilient_ circular business_" concluded Kontovrakis. While many policymakers aim to make it a collaborative process_ working towards a shared goal in mind_ the time to prepare for it is now.