Boost for Cotton Mills: Payment Rate Increased

You might care about this because the US Department of Agriculture has updated a program that helps American textile mills. This program, called Economic Adjustment Assistance for Textile Mills or EAATM, provides financial help to companies that use US-grown cotton. The money can be used to acquire, build, or improve their equipment and facilities for making cotton products. This new rule increases the payment these companies receive. Starting August 1, 2025, mills will get five cents for every pound of eligible cotton they use, up from the previous three cents. This change comes from a new law called the One Big Beautiful Bill Act. The program encourages domestic use of US upland cotton by offering this financial support to eligible businesses. These businesses include those that spin cotton into yarn, make paper from cotton, or produce non-woven cotton products. This update is particularly interesting because it means more financial support for American textile manufacturers. The EAATM program has been in place for a while, designed to help these businesses stay competitive and invest in their operations. While the payment rate had been lowered in the past, this new rule increases it. This is a direct financial benefit to participating mills. It shows the government's continued support for the domestic cotton industry. The change simply updates the payment amount as required by a recent law. It does not add new rules or burdens for the companies that choose to participate. Instead, it offers an enhanced incentive, making it a straightforward, positive change for those eligible. This legal document is most relevant to businesses that operate textile mills in the United States. Specifically, if your company uses upland cotton to spin yarn, make paper, or create non-woven cotton products, this financial assistance program applies directly to you. Farmers who grow upland cotton might also find this interesting, as it supports the demand for their crop within the country. Anyone working in the agricultural sector, particularly with cotton, or those in the textile manufacturing industry, should pay close attention to this rule. It also matters to legal professionals who advise these industries or study federal agricultural policies and economic aid programs.