by Caroline DeLoach, Director of Sustainability, Atlantic Packaging & A New Earth Project
If you work in sustainable packaging, you’ve probably heard this line before: “It’s technically recyclable.” But until we modernize the systems that actually collect, sort, and reprocess our materials, “technically recyclable” remains just that: technical, not practical.
Designing packaging for circularity is critical. But without the infrastructure to match, it’s like building electric vehicles without investing in charging stations. This is where federal policy needs to step up — and that’s exactly what the CIRCLE Act proposes to do.
We’re supporting this legislation because it’s smart, strategic, and overdue.
What is the CIRCLE Act?
The Creating Infrastructure for Recycling and Circularity for Local Economies (CIRCLE) Act, introduced by Reps. Tom Suozzi (D-NY) and Brian Fitzpatrick (R-PA), is a bipartisan bill aimed at catalyzing real investment in the U.S. recycling system — a system that’s long been underfunded, unevenly developed, and lacking in transparency.
At the heart of the bill is a 30% investment tax credit for businesses that invest in qualified recycling and circularity infrastructure. That could include everything from advanced sortation systems to processing equipment to cutting-edge material recovery technologies. The credit is structured to phase out over 10 years, encouraging near-term acceleration without locking in permanent subsidies.
Equally important, the bill extends a direct rebate mechanism to local governments, helping municipalities modernize their systems without shouldering the full financial burden, which too often gets passed down to residents.
This approach mirrors the kinds of incentive structures that have helped scale solar, wind, and battery storage. The principle is simple: if we want circular systems to work, we need to reduce the upfront risk and reward long-term investment.
Why This Bill Deserves Support
According to The Recycling Partnership, the CIRCLE Act could unlock:
- $8.8 billion worth of valuable materials currently being landfilled or incinerated. That’s not just waste; it’s lost economic opportunity. Recovering these materials supports U.S. manufacturing, packaging innovation, and supply chain resilience.
- More than 200,000 new jobs, from logistics to engineering to technology. And not just in major cities; these roles could be spread across rural and suburban areas where recycling access is currently limited.
- $11 billion in new wages across the country, strengthening the economic case for investing in circularity at a national scale.
- $9.4 billion in potential cost savings for local governments and taxpayers, driven by reduced landfill use, improved material recovery, and more efficient waste operations.
- Broader access to recycling in underserved communities, especially in rural areas where transfer stations and MRFs are few and far between. This is how we make circularity equitable and inclusive: by making it accessible everywhere.
And here’s a stat that often gets overlooked: recycled materials already make up 40% of manufacturing inputs across material categories. With more consistent sortation, better contamination control, and expanded end markets, that figure can grow — enabling brands to meet their recycled content goals without relying on volatile international markets.
A Rare Moment of Agreement
One of the most encouraging aspects of the CIRCLE Act is its bipartisan foundation. At a time when few issues seem to cross the aisle, this bill represents common ground: economic development, environmental progress, and material efficiency.
It’s also a chance for the packaging industry — and the broader sustainability community — to rally around a federal policy that can move the needle beyond individual brand efforts or local pilot programs.
What You Can Do
If you’re a brand, manufacturer, retailer, or organization working toward circularity, this is a moment to take action. Here’s how:
- Add your voice to the coalition by reaching out to The Recycling Partnership. They’re organizing sign-on support from companies that care about the future of U.S. recycling and sustainable materials.
- Contact your member of Congress or your policy and government affairs teams and urge them to support the CIRCLE Act. Whether you're on the product side or the advocacy side, momentum matters.
- Educate your teams and peers about what this bill could mean for the packaging landscape. Circularity isn’t just about material design: it’s about systems, economics, and access.
The U.S. has never had a coherent, well-funded strategy for modernizing recycling infrastructure. The CIRCLE Act gives us a real shot at changing that — not just to recover more materials, but to reimagine what’s possible when policy, innovation, and investment work together.
