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.

1. Map obligations & define responsibilities
Understand where you sell, in which markets, which products are covered, and where textile EPR is emerging.
2. Establish clear internal ownership
Appoint a textile EPR lead with authority across legal, sustainability, supply chain, and design teams.
3. 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.
4. Integrate Textile EPR into design & sourcing
"Eco-modulation turns design decisions into financial decisions," said Kontovrakis, making early alignment essential.
5. 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.