AAFA Reacts to Administration Actions Restricting USAID and Vital Foreign Assistance Programs

February 7, 2025 | WASHINGTON, D.C. Today, the American Apparel & Footwear Association expressed alarm to actions taken in the last two weeks that AAFA believes is tantamount to the dismantling of the United States Agency for International Development and U.S. foreign assistance.

“USAID is an indispensable partner to the industry, providing critical support for our industry on worker rights, worker empowerment, worker health, renewable energy, climate impact, education, and sustainability in the countries where we operate. Moreover, USAID is essential to supporting these countries’ response to natural disasters and strengthening democratic institutions. All these actions and more help build strong alliances between workers and communities in the United States and these countries. In short, our industry, and our country, will suffer without USAID and its vital funding,” said AAFA president and CEO Steve Lamar.

“While we always welcome deliberative efforts to ensure foreign assistance programs use U.S. taxpayer resources effectively and efficiently abroad, the actions and rhetoric of the past few days do not seem to be part of such an effort," added AAFA senior vice president of policy Nate Herman. “Sudden funding cuts, staff terminations, and program delays that have been triggered are adversely impacting numerous national economic and security goals worldwide.”

Just a few of the programs that have been harmed include: 

USAID Regional Trade and Investment Project – A five-year project that supports textile and apparel Foreign Direct Investment and job creation in the Northern Triangle countries. Such work helps reduce dependency on China, while creating quality jobs in Central America that support U.S. workers and reduces immigration pressures.

Hilando Oportunidades – An innovative partnership led by NC State University and Gaston College to provide technical training for Hondurans textile workers vulnerable to migration pressures. More than 1000 individuals have already graduated from this program, which shows promise of evolving into a training hub that offers degree programs. Instead of become illegal migrants, these individuals are remaining as productive members of their communities, where they support their families in a cross border partnership that benefits the U.S. textile and apparel industry. 

The USAID Global Labor Program - Part of the Democracy, Human Rights, and Governance section, which operates 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. The program 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.

The USAID Africa Trade and Investment (ATI) Program – Geared to drive FDI 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 40+ U.S. brands source competitively priced African products, reducing reliance on China. By linking African producers with global buyers, ATI supports 30,000 U.S. jobs, directly strengthens supply chains, economic security, and U.S. trade leadership.

The 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, at the workplace, and in society.

In addition, there are a range of programs run by NGOs, and funded by USAID, that partner with industry in Bangladesh, Cambodia, Central America, and other countries to provide training and education to workers and factory management on worker empowerment, worker health, and to prevent violence against women.
AAFA is urging the Administration to work with Congress and stakeholders to ensure that USAID remains fully funded and fully staffed, and that key programs such as those mentioned above remain vital, robust, and operational in support of key 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, and more. AAFA members partner with USAID government staff, contractors, and related parties to improve live and livelihoods around the world while advocating for stability in the regions with which they interact.