Drugs without China-sourced ingredients: new purchase rules and tax breaks.
This act aims to restrict US government health programs from purchasing drugs with ingredients from China, potentially affecting drug availability and prices. It also introduces tax breaks for companies manufacturing drugs and medical devices in the US, encouraging local production and enhancing supply security. Citizens may experience changes in drug availability and origin.
Key points
Starting in 2028, federal health programs will gradually limit the purchase of drugs with active ingredients from China, completely avoiding them by 2030.
A labeling requirement for the country of origin of each active ingredient in drugs is introduced, increasing transparency for consumers.
Companies manufacturing drugs and medical devices in the US can benefit from temporary tax breaks (100% deduction for investment costs) until the end of 2030, supporting domestic production.
Introduced
Additional Information
Print number: 119_S_1407
Sponsor: Sen. Cotton, Tom [R-AR]
Process start date: 2025-04-10