Skip to site menu Skip to page content

US garment factories to win big under FABRIC Act reintroduction

The Fashioning Accountability and Building Real Institutional Change (FABRIC) Act is being reintroduced in the US, with an aim to protect over 75,000 American garment workers and help revitalise the US manufacturing industry.

Hannah Abdulla September 17 2026

Congressman Jerry Nadler (NY-12) and US Senator Kirsten Gillibrand (D-NY) said that for too long, garment workers have faced unsafe working conditions, wage theft, and piecework pay, which often prioritises fast fashion over the safety of workers.

The FABRIC Act proposes to address these issues by:

  1. Restructuring pay rates for garment workers and providing minimum wage as a floor with productivity incentives on top.
  2. The bill introduces rules that hold major fashion brands and retailers legally and financially responsible for labour and wage violations committed by their manufacturing partners and sewing contractors.
  3. It introduces recordkeeping and transparency measures, including requiring garment manufacturers and contractors operating in the US to register with the Department of Labor.
  4. Incentivising reshoring: The bill proposes a $100m National Domestic Garment Manufacturing Support Program. It includes a 30% tax credit for clothing companies that move their manufacturing operations back to the United States from overseas.

“America's garment workers have been undervalued and subjected to unfair labor practices for far too long, due to weak regulations across the fashion industry and the rise of fast fashion. With more than 100,000 New Yorkers contributing their labour to a billion-dollar garment industry, it is time to protect these workers and others across our nation and make historic investments in domestic manufacturing by passing the FABRIC Act,” said Congressman Jerrold Nadler. “I’m proud to work with Senator Gillibrand to protect workers’ rights, bring jobs back from overseas, and revitalise the American fashion industry.”

“Garment workers are the backbone of a multibillion-dollar industry, yet for far too long, their labor has been undervalued and exploited,” added Senator Gillibrand. “We cannot champion American innovation while turning a blind eye to abusive labour practices in our own backyard. It’s time to take bold action at the federal level to change the fabric of the American garment industry. The United States was once home to a booming apparel manufacturing industry, and it’s time to reexamine how this industry has evolved over the past 50 years and change how we treat our workers. With the FABRIC Act, we can curb wage theft, protect our workers, and revitalise domestic manufacturing so that 'Made in America' also means ethically made.”

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors