AAFA president and CEO Steve Lamar is urging the US administration to collaborate with Congress and relevant stakeholders to ensure the US Agency for International Development (USAID) continues to receive full funding and staffing after US President Donald Trump issued an executive order halting all funding, pending a 90-day review.
The state department also released a memo instructing that USAID-funded on-the-ground projects cease operations.
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Lamar describes USAID as playing a “pivotal role” as an ally to the fashion sector, however this week (11 February) reports claim US President Donald Trump has fired the watchdog responsible for overseeing the agency after an independent report revealed the impact of his recent staff reductions and pause on foreign assistance.
According to the nonprofit think tank Center for Global Development (CGD), if USAID funding were suspended for one year, it would cause a significant economic impact, surpassing 1% of Gross National Income (GNI) in 23 countries.
Eight of these nations would experience a severe decline of 3% or more. Additionally, eight low-income and eight lower-middle-income countries would lose more than 20% of the foreign aid they currently receive.
Some of the countries most exposed are Democratic Republic of Congo, Ethiopia, Haithi, Jordan, Honduras and the Central African Republic, reported CGD.
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By GlobalDataAccording to government data, the US is the largest global donor of international aid, contributing $68bn in 2023.
AAFA president and CEO Steve Lamar explains USAID offers “indispensable aid in areas such as worker rights, empowerment, health, renewable energy, climate influence, education, and sustainability in the nations where we have a presence”.
He continues: “Beyond this, USAID is vital for aiding these nations in responding to natural calamities and fortifying democratic frameworks. These endeavours are instrumental in forging robust bonds between American workers and communities and those abroad. In essence, the absence of USAID and its essential financial support would be detrimental to both our industry and our nation.”
Impacted USAID initiatives
– The USAID Regional Trade and Investment Project: This five-year initiative promotes textile and apparel Foreign Direct Investment (FDI) and job creation in the Northern Triangle countries. Its efforts help diminish reliance on China by fostering quality employment opportunities in Central America that also benefit US workers and alleviate immigration pressures.
– Hilando Oportunidades: A collaborative effort spearheaded by NC State University and Gaston College providing technical training to Honduran textile workers at risk due to migration pressures. Over 1,000 individuals have completed this programme, which is on track to become a significant training centre offering degree programmes. Graduates are choosing to stay within their communities as productive citizens, supporting their families through a cross-border partnership that also benefits the US textile and apparel industry.
– The USAID Global Labor Program: Operating under the Democracy, Human Rights, and Governance sector across 30 countries globally, this programme seeks to bolster conditions conducive to freedom of association — a cornerstone of sound labour relations — particularly in regions with fragile rule of law. It emphasises empowering democratic unions to represent workers via social dialogue and collective bargaining. The Solidarity Centre is a key partner in this endeavour, providing technical support, capacity enhancement, and engaging with governments, private entities, unions, and civil society organisations. Notable achievements include promoting labour rights in Cambodia and northern Central America.
– The USAID Africa Trade and Investment (ATI) Program: Designed to stimulate FDI and job growth within Africa’s textile and apparel sector while simultaneously benefiting US companies, ATI has enabled $500m in exports and $100m in investments. It has assisted over 40 US brands in sourcing competitively priced African goods, thus diminishing dependence on Chinese imports. By connecting African producers with international buyers, ATI not only backs 30,000 jobs in the US but also directly bolsters supply chains, economic stability, and US trade leadership.
– The USAID Prevention and Response to Gender-Based Violence (GBV) Project: This programme operates in more than 40 countries to curb violence against women through training, education, and resource provision to governments, industries, and workers.
Furthermore, numerous programmes conducted by NGOs with USAID funding collaborate with the industry in Bangladesh, Cambodia, Central America, among other locations. These programmes deliver training and education on worker empowerment, health, and prevention of violence against women to both workers and factory management.
The AAFA is advocating for the preservation of these critical programmes so they remain effective and active in supporting vital US economic interests as well as diplomatic, foreign policy, and humanitarian goals.
AAFA members account for over 1,100 renowned brands that have a worldwide footprint in fashion sourcing, manufacturing, sales and merchandising. The AAFA works closely with USAID government personnel and contractors to enhance lives and livelihoods globally while promoting stability within the regions they engage with.
