ABC Safe Drug Act

Key Points

• This bill, introduced by Senator Cotton, would stop federal programs like Medicare, the VA, and the military from buying medicines that use ingredients made in China. The goal is to move the supply chain for important drugs away from China and toward the U.S. or other approved countries.
• The change would happen in stages: by 2028, at least 60% of a drug's active ingredients must come from outside of China, and by 2030, 100% of those ingredients must come from other countries that meet U.S. safety standards.
• Drug companies would be required to update their labels to clearly list the country where every active ingredient in the medicine was made, giving the government and the public more information about where their pills come from.
• To help companies move their operations, the bill offers a major tax break. Businesses that build or expand factories in the United States to make drugs or medical devices could deduct 100% of those costs from their taxes through the year 2030.
• While the bill aims to improve national security and bring jobs back to the U.S., it could lead to higher costs for some medicines if alternative ingredients are more expensive to produce than those currently made in China.