Lawmakers reintroduce FABRIC Act with $100 million for U.S. garment grants
On Monday, Rep. Jerrold Nadler and Sen. Kirsten Gillibrand reintroduced the FABRIC Act, proposing $100 million in domestic manufacturing grants to support over 75,000 U.S. garment workers. The grant amount doubles the $50 million sought in the prior version and would create a brand guarantor liability for Fair Labor Standards Act violations across subcontracting tiers.
Under the bill, garment workers covered by the Fair Labor Standards Act could no longer receive piece-rate or per-unit base pay, though productivity bonuses tied to output could still be paid on top of an hourly wage. A limited exception would apply to workers under collective‑bargaining agreements that meet specified wage, overtime and dispute‑resolution standards. The statutory floor would remain the federal minimum wage of $7.25 an hour, unchanged since 2009, with employers still required to follow higher state or local minimums where they apply. The legislation does not revive the 30 percent tax credit for moving operations to HUBZones or low‑income communities that appeared in the original 2022 House version.
“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,” Rep. Jerrold Nadler said.
“With more than 100,000 New Yorkers contributing their labor 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,” Rep. Jerrold Nadler said.
The bill has been introduced before, first appearing in the 117th Congress in 2022. It was revived in September 2023 but stalled in committee both times. This marks the third attempt to pass the FABRIC Act through Congress.
What we know
$100 million for domestic manufacturing grants
more than 75,000 U.S. garment workers protected
third trip through Congress
brand guarantor liability for FLSA violations
California’s Garment Worker Protection Act effective Jan. 1, 2022