Bill > S1407

This bill aims to reduce dependence on pharmaceutical ingredients manufactured in China by implementing a phased approach for federal health programs to purchase drugs with increasingly higher percentages of active pharmaceutical ingredients (APIs) produced in countries other than China. Starting January 1, 2028, federal agencies like Health and Human Services, Veterans Affairs, and Defense must purchase drugs with at least 60% of APIs manufactured in non-Chinese countries that meet FDA health and safety standards, and by January 1, 2030, they must exclusively purchase drugs with 100% of APIs from such countries. The bill also introduces a labeling requirement mandating that drug labels specify the country of origin for each active ingredient. To incentivize domestic pharmaceutical manufacturing, the bill provides a temporary 100% tax expensing provision for pharmaceutical and medical device manufacturing property placed in service between 2024 and 2031, encouraging companies to build or expand manufacturing facilities in the United States. The Secretary of Health and Human Services can issue waivers for agencies unable to meet these requirements, but no waivers will be allowed for drug purchases after January 1, 2031. This legislation is part of a broader effort to reduce reliance on Chinese pharmaceutical supply chains and strengthen domestic drug manufacturing capabilities.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1407/all-info