In 2025, the apparel and footwear industry is facing a critical challenge as the United States Agency for International Development (USAID) faces significant funding cuts and program dismantlement. These changes, implemented by the current administration, have sent shockwaves through the industry, raising concerns about the future of global supply chains, worker rights, and sustainability initiatives.
USAID's Role in the Apparel and Footwear Industry
USAID has long been a cornerstone of international development, providing critical support to industries like apparel and footwear. The agency's programs have been instrumental in promoting worker rights, improving working conditions, and fostering sustainable practices in key manufacturing regions around the world.
For the apparel and footwear industry, USAID's initiatives have been particularly vital. Programs such as the USAID Regional Trade and Investment Project, the Hilando Oportunidades training program, the USAID Global Labor Program, the USAID Africa Trade and Investment (ATI) Program, and the USAID Prevention and Response to Gender-Based Violence (GBV) Project have all played a crucial role in ensuring that global supply chains are ethical, sustainable, and equitable.
The Abrupt Funding Cuts and Their Implications
The recent funding cuts and staff terminations at USAID have been met with alarm by industry leaders. Steve Lamar, President and CEO of the American Apparel & Footwear Association (AAFA), has been vocal about the potential consequences of these cuts. According to Lamar, the dismantling of USAID's programs threatens to undermine decades of progress in global labor rights, health, renewable energy, climate impact mitigation, education, and sustainability.
The abrupt nature of these cuts has left many in the industry scrambling to adjust. Key programs that were once the backbone of USAID's support for the apparel and footwear industry are now facing delays, reductions, or even complete elimination. This has created a sense of uncertainty and instability, not just for manufacturers and suppliers, but also for workers around the world who rely on these programs for their livelihoods.
Key Programs Affected by the Cuts
Several key USAID programs have been adversely affected by the funding cuts. These programs were essential for promoting worker rights, improving working conditions, and fostering sustainable practices in the apparel and footwear industry. Some of the most notable programs affected include:
- USAID Regional Trade and Investment Project: This program was designed to promote regional trade and investment, helping to create jobs and stimulate economic growth in key manufacturing regions.
- Hilando Oportunidades Training Program: This program provided training and capacity-building for workers in the apparel and footwear industry, helping them to develop the skills they need to compete in a global economy.
- USAID Global Labor Program: This program focused on improving labor rights and working conditions in key manufacturing regions, helping to ensure that workers were treated fairly and with dignity.
- USAID Africa Trade and Investment (ATI) Program: This program was designed to promote trade and investment in Africa, helping to create jobs and stimulate economic growth on the continent.
- USAID Prevention and Response to Gender-Based Violence (GBV) Project: This program was focused on preventing and responding to gender-based violence in the workplace, helping to create a safer and more equitable work environment for women and girls.
These programs were not just important for the apparel and footwear industry; they were also critical for promoting U.S. foreign policy objectives and advancing national economic and security interests around the world. Their loss will be deeply felt, both within the industry and beyond.
The Industry's Response to the Cuts
The AAFA, which represents more than 1,100 name brands in the apparel and footwear industry, has been at the forefront of the response to the USAID funding cuts. The association has urged the administration to work with Congress and other stakeholders to ensure that USAID remains fully funded and staffed, and that key programs continue to operate robustly.
According to Steve Lamar, the AAFA is committed to working with policymakers to find a solution that protects the interests of the apparel and footwear industry, while also advancing U.S. foreign policy objectives. "USAID's programs have been instrumental in promoting worker rights, improving working conditions, and fostering sustainable practices in key manufacturing regions," Lamar said. "We cannot afford to lose these programs, and we will do everything in our power to ensure that they continue to receive the funding and support they need."
The Broader Implications for Global Supply Chains
The impact of the USAID funding cuts will be felt far beyond the apparel and footwear industry. Global supply chains, which rely on stable and predictable conditions in key manufacturing regions, will be particularly vulnerable to the loss of these programs. Without the support of USAID, many manufacturers and suppliers may struggle to maintain the high standards of worker rights, health, and sustainability that have been promoted by these programs.
This could have serious consequences for consumers, who have come to expect that the clothes and shoes they buy are made in factories that respect worker rights and adhere to sustainable practices. If these standards are allowed to erode, it could damage the reputation of the apparel and footwear industry as a whole, and lead to a loss of consumer trust.
A Call to Action
The AAFA is urging policymakers, industry leaders, and consumers to take action to protect USAID's programs and ensure that they continue to receive the funding and support they need. This includes:
- Advocating for Full Funding of USAID: The AAFA is calling on Congress to fully fund USAID and ensure that the agency has the resources it needs to continue its critical work around the world.
- Supporting Key Programs: The AAFA is urging policymakers to protect key programs like the USAID Regional Trade and Investment Project, the Hilando Oportunidades training program, and the USAID Global Labor Program.
- Raising Awareness: The AAFA is working to raise awareness about the importance of USAID's programs and the potential consequences of the funding cuts. This includes engaging with the media, policymakers, and the public to highlight the need for continued support.
- Encouraging Stakeholder Collaboration: The AAFA is encouraging collaboration between the administration, Congress, and other stakeholders to find a solution that protects the interests of the apparel and footwear industry, while also advancing U.S. foreign policy objectives.
Conclusion
The recent funding cuts to USAID and the dismantling of its programs represent a significant challenge for the apparel and footwear industry. These programs have been instrumental in promoting worker rights, improving working conditions, and fostering sustainable practices in key manufacturing regions around the world. Their loss will be deeply felt, not just within the industry, but also by workers, consumers, and policymakers who rely on these programs to advance U.S. foreign policy objectives.
As the industry moves forward, it will be important to remain vigilant and proactive in advocating for the protection of USAID's programs. The AAFA and its members are committed to working with policymakers and other stakeholders to find a solution that ensures the continued funding and operation of these critical initiatives. Together, we can help to safeguard the future of the apparel and footwear industry, while also promoting worker rights, health, renewable energy, climate impact mitigation, education, and sustainability around the world.
