CIRCLE Act Targets $30B Recycling Industry Boost

Members of the U.S. Congress will review the Cultivating Investments in Recycling and the Circular Local Economy Act of 2025 (CIRCLE Act, referred to as the Circular Economy Act). This is a bipartisan bill recently introduced by New York Democratic Congressman Tom Suozzi and Pennsylvania Republican Congressman Brian Fitzpatrick.

House Resolution No. 4466, currently under review by the House Committee on Fundraising, plans to establish a targeted 30% investment tax credit (applicable to qualified investments in new or upgraded recycling infrastructure) to improve recycling infrastructure and strengthen domestic manufacturing. This credit policy will be phased out over 10 years.

Suozzi stated: "Streamlining the recycling process and reducing recycling costs can save up to $9.4 billion for local governments and taxpayers in my district and across the country — as fewer recyclables are unnecessarily sent to costly landfills and incinerators. By reducing waste, we lower the cost of living while creating jobs in the recycling industry, which is obviously a good thing."

The bill will create 200,000 new jobs and reintroduce 169 million tons of recyclables back into the market. (Image source: hapabapa/iStock via Getty Images)

Direct subsidy

The Circular Economy Act introduces significant economic incentives aimed at fundamentally reforming the United States' recycling infrastructure. Among these measures is a 30% investment tax credit for private sector investments in recycling equipment, technology, and infrastructure. This provision is designed to unlock private capital and drive innovation across the recycling industry. Additionally, municipalities that invest directly in waste reduction initiatives will receive direct subsidies intended to modernize local systems without increasing the tax burden on residents.

The strategic design of the bill aims to strengthen domestic manufacturing by building a more robust supply chain for recycled materials, ultimately enhancing the global competitiveness of the United States. Supporters of the bill, including the Recycled Materials Association (ReMA), emphasize that the "Circular Economy Act" can bring multiple benefits—creating jobs, saving taxpayer money, and reducing the amount of waste sent to landfills and incinerators—effectively balancing fiscal responsibility and environmental management.

The Circular Economy Act has received broad support from environmental advocates and industry groups, with organizations such as recycling cooperatives expressing approval and believing that the act has the potential to transform the U.S. recycling system. These stakeholders recognize that the act can drive economic growth by developing a more circular economy, representing a rare point of consensus between business interests and environmental advocates.

Industry organizations expressed support for the bill.

Keefe Harrison, CEO of The Recycling Partnership, stated that investing in America's recycling infrastructure means investing in the American economy.

Harrison added: "The Circular Economy Act presents an opportunity to incentivize private sector investment, helping to generate over $30 billion in economic benefits from recycling investments—including 200,000 new jobs, $950 million in taxpayer savings, and 169 million tons of recyclables returned to the domestic market. The Recycling Partnership is committed to building a better recycling system in the United States and is proud to support the Circular Economy Act."

The Plastics Industry Association (PLASTICS) of the United States has also expressed support for the bill.

Chris Rager, Vice President of Government Affairs at the American Plastics Industry Association, said: "The Circular Economy Act is a practical, growth-promoting solution that will strengthen America's recycling infrastructure through private investment. The American Plastics Industry Association is proud to join a broad industry coalition in supporting the introduction of this groundbreaking act."

Rager pointed out that by establishing targeted tax credits, the bill will enable manufacturers and recycling enterprises to modernize their operations, increase material recycling rates, and create jobs in communities across the United States.

He concluded: "This reinforces the role of recycling as a key component of America's circular economy strategy. We commend the legislators for advancing this sensible policy, which supports innovation, economic competitiveness, and responsible resource management."