The Textile Waste Reduction Act establishes an Interagency Working Group on Textile Circularity to coordinate federal efforts in advancing textile recycling and reuse across nine agencies including the EPA, Department of Energy, and FTC. Within 225 days of enactment, these agencies must develop a charter outlining the group's goals and operations, with the EPA serving as chair. The working group will assist with developing a National Textile Circularity Strategy, share information across agencies, and create a common federal framework for textile circularity principles and data standards. The bill also defines key terms such as "textile circularity" (production systems that minimize waste and keep textiles in circulation) and "textile waste" (discarded textiles excluding recovered materials) to establish clear parameters for implementation. Congress will receive progress reports from the working group at least every two years to track the government's efforts in reducing textile waste and promoting a circular economy for the textile industry.