US Congressman introduce Buying American Cotton Act

US Congressman Greg Murphy, MD, alongside Terri Sewell, has introduced the Buying American Cotton Act (BACA) in the US House of Representatives, proposing a tax credit to incentivise the use of US-grown cotton in consumer products. The bipartisan legislation aims to strengthen demand for domestic cotton amid rising global competition and ongoing pressure on rural farming communities.

“American cotton growers, especially those in Eastern North Carolina, play a critical role in our nation's farm economy. They help supply countless industries with high-quality raw material to produce clothing, home goods, industrial and medical products, and much more. I am proud to put Eastern North Carolina first by introducing the Buying American Cotton Act to support its rich tradition of producing high-quality cotton for the United States and the world," said Murphy.

Under the proposal, the tax credit would be available to the first US entity that sells an eligible cotton-containing product directly to a consumer. The credit would be determined based on verified US cotton origin, the volume of US-grown fibre used, and the location of manufacturing.

"Alabama’s cotton growers are an essential part of our agricultural community. At a time of growing uncertainty for farmers, I’m proud to join Congressman Greg Murphy to introduce the Buying American Cotton Act which will protect American jobs and provide more stability for cotton growers right here in Alabama,” said Congresswoman Sewell.

Industry groups have welcomed the move, noting that farmers in North Carolina’s 3rd Congressional District alone produced more than 113,000 bales of cotton in 2024. The America's Cotton Marketing Cooperatives (AMCOT) said the legislation would create tax-driven incentives for lasting changes in sourcing behaviour, improving demand consistency for US cotton and strengthening domestic agriculture, manufacturing, and supply chain resilience.

“We commend the Senate and House sponsors and co-sponsors for their leadership in advancing this critical legislation. BACA would help reorient the massive US textile and apparel supply chains back toward US raw cotton and US manufactured cotton product. Its timing is especially critical for farm and textile communities that continue to lose market share to foreign-produced fibers,” said Meredith Allen, chairman of AMCOT.

Fibre2Fashion News Desk (HU)