The American Apparel & Footwear Association (AAFA) has expressed significant concern over recent administrative actions that effectively dismantle the United States Agency for International Development (USAID) and curtail U.S. foreign assistance programs. AAFA President and CEO Steve Lamar emphasized USAID’s critical role in supporting the industry through initiatives focused on worker rights, health, renewable energy, climate impact, education, and sustainability in key manufacturing regions. He noted that USAID’s efforts are instrumental in fostering strong alliances between U.S. workers and international communities, and that the absence of such support could adversely affect both the industry and the nation.
AAFA Senior Vice President of Policy Nate Herman highlighted that recent abrupt funding cuts, staff terminations, and program delays are negatively impacting numerous national economic and security objectives globally. He expressed concern that these actions do not appear to be part of a deliberate effort to ensure the effective and efficient use of U.S. taxpayer resources abroad.
Several key programs have been adversely affected by these developments:
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USAID Regional Trade and Investment Project: This five-year initiative supports textile and apparel foreign direct investment and job creation in the Northern Triangle countries, aiming to reduce dependency on China while creating quality jobs in Central America that support U.S. workers and mitigate immigration pressures.
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Hilando Oportunidades: An innovative partnership led by North Carolina State University and Gaston College, providing technical training for Honduran textile workers vulnerable to migration pressures. Over 1,000 individuals have graduated from this program, which shows promise of evolving into a training hub offering degree programs. This initiative enables individuals to remain productive members of their communities, supporting their families in a cross-border partnership that benefits the U.S. textile and apparel industry.
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USAID Global Labor Program: Operating in 30 countries worldwide, this program aims to strengthen the environment for freedom of association, essential for healthy labor relations, especially in areas with weak rule of law. It focuses on building the capacity of democratic unions to represent workers through social dialogue and collective bargaining. The Solidarity Center is the primary partner, providing technical assistance, capacity building, and engaging with governments, the private sector, unions, and civil society. Recent efforts include advancing labor rights in Cambodia and northern Central America.
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USAID Africa Trade and Investment (ATI) Program: Designed to drive foreign direct investment and job creation in Africa’s textile and apparel sector while benefiting U.S. businesses, ATI has facilitated $500 million in exports and $100 million in investment, helping over 40 U.S. brands source competitively priced African products, thereby reducing reliance on China. By linking African producers with global buyers, ATI supports 30,000 U.S. jobs, directly strengthening supply chains, economic security, and U.S. trade leadership.
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USAID Prevention and Response to Gender-Based Violence (GBV) Project: A vital initiative that works to prevent violence against women in over 40 countries by providing training, education, and resources to government, industry, and workers to prevent violence against women in the home, workplace, and society.
Additionally, various programs run by non-governmental organizations and funded by USAID partner with the industry in countries such as Bangladesh, Cambodia, and Central America to provide training and education to workers and factory management on worker empowerment, health, and the prevention of violence against women.
AAFA is urging the administration to collaborate with Congress and stakeholders to ensure that USAID remains fully funded and staffed, and that key programs continue to operate robustly in support of U.S. economic, diplomatic, foreign policy, and humanitarian objectives.
AAFA members represent more than 1,100 name brands with a global presence in sourcing, manufacturing, sales, and merchandising. They partner with USAID government staff, contractors, and related parties to improve lives and livelihoods around the world while advocating for stability in the regions with which they interact.
