USDA Announces Rate Increase for Economic Adjustment Assistance for Textile Mills Program

WASHINGTON, Feb. 24, 2026 - The U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) today announced a payment rate increase for the Economic Adjustment Assistance for Textile Mills (EAATM) Program to five cents per pound, as mandated by the One Big Beautiful Bill Act.

“This rate increase will provide an estimated additional $15 million per year to the domestic textile industry, supporting an important U.S. manufacturing sector,” said Dudley Hoskins, USDA’s Under Secretary for Marketing and Regulatory Programs. “USDA is grateful for Congress’s continued investment in the cotton industry and support of our mission to put American farmers first.”

Payments are offered to domestic textile mills using upland cotton to incentivize capital investments. Capital investments must be in the United States and include acquiring, constructing, installing, modernizing, developing, converting or expanding land, plant, buildings, equipment, facilities, or machinery. Approximately 1.8 million bales of upland cotton are consumed domestically per year and are reported for purposes of the EAATM Program.

“The National Cotton Council commends USDA for the timely implementation of the One Big Beautiful Bill Act payment rate increase for the EAATM Program. In the increasingly competitive textile marketplace, this increase will allow mills to continue to make the upgrades and investments necessary to preserve a critical manufacturing base in the United States, and support demand for U.S. cotton.”— National Cotton Council

The One Big Beautiful Bill Act payment rate increase from three to five cents per pound is the first time the payment rate has increased since EAATM was established in 2008.

Existing program participants have already been notified of the rate change and have executed updated agreements consistent with the new statutory rate. No additional action is required from current program participants. For more information about the EAATM Program, contact the USDA Warehouse & Commodity Management Division at (816) 926-6474 or EAATM.ELS@usda.gov.

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