Consolidated Appropriations Act, 2026
Updated 2 hours ago
Last progress February 3, 2026 (3 weeks ago)
Changes and extends duty-free apparel trade preferences for Haiti and authorizes the President to restore tariff classifications so certain previously-eligible goods can again receive preferential treatment. It sets a 60% applicable-content threshold (effective Dec 20, 2017), imposes an annual quantitative cap on eligible apparel (1.25% of aggregate square-meter equivalents), extends duty-free treatment through Sept 30, 2035, and requires a short notice/report to Congress before any tariff-schedule restorations take effect.
Amend subsection (b)(1)(B)(v)(I) to define the term “applicable percentage” to mean 60 percent or more on and after December 20, 2017.
Amend subsection (b)(1)(C) (Quantitative limitations) to provide that the preferential treatment described in subparagraph (A) shall be extended, during each period after the initial applicable 1-year period, to not more than 1.25 percent of the aggregate square meter equivalents of all apparel articles imported into the United States in the most recent 12-month period for which data are available.
Amend subsection (b)(2) by striking each place a certain phrase appears and inserting “in any of the succeeding 1-year periods.”
Amend subsection (h) (Termination) so that the duty-free treatment provided under this section remains in effect until September 30, 2035.
The President must proclaim any modifications to the Harmonized Tariff Schedule of the United States that are necessary to restore eligibility of certain articles for preferential treatment under section 213A of the Caribbean Basin Economic Recovery Act.
Primary direct impacts: Haitian apparel manufacturers and exporters gain extended access to U.S. duty-free treatment through 2035, which supports production and potential job retention/creation in Haiti. U.S. importers, retailers, and brands sourcing from Haiti can import qualifying apparel without duties, subject to the new annual cap of 1.25% of aggregate square-meter equivalents; this cap could limit scale or shift sourcing decisions if demand exceeds the cap. U.S. apparel producers face continued competition from duty-free Haitian imports. Federal agencies (USTR, Commerce, and Customs/CBP) will need to apply the 60% content rule (retroactive to Dec 20, 2017 where relevant), monitor and enforce the quantitative cap, and process any HTS adjustments. Restoring eligibility for items that lost coverage due to HTS changes helps businesses affected by tariff reclassifications, but restoration is conditional on a presidential proclamation and short congressional notice, creating a brief administrative delay before changes take effect. Fiscal impact: reduced duties on qualifying imports while the program is in effect, but the overall revenue effect is likely limited by the 1.25% annual cap. Compliance and classification activity could increase administrative workload for customs and trade regulators. Overall, the legislation modestly favors Haiti’s apparel sector and U.S. firms sourcing Haitian goods while imposing monitoring and quota-management responsibilities on government agencies.
Read twice and referred to the Committee on Finance.
Updated 1 hour ago
Last progress February 26, 2025 (12 months ago)
Last progress February 26, 2025 (12 months ago)
Introduced on February 26, 2025 by Bill Cassidy