Sponsors
The bill combines tax incentives to spur domestic pharmaceutical and device manufacturing and new supply‑chain transparency/procurement rules to reduce reliance on a single foreign source, but it risks higher drug costs and potential shortages, reduced competition, short‑term federal revenue loss, and uneven distribution of benefits toward larger firms.
Manufacturers of drugs and medical devices (especially smaller firms that invest) can fully expense qualifying equipment placed in service 2025–2030, providing large first-year tax relief and improved cash flow.
Encourages faster construction and expansion of U.S. pharmaceutical and medical device manufacturing facilities, strengthening domestic production capacity, supporting rural communities, and improving supply-chain resilience over time.
Federal purchasers will get clearer information on API country of origin and the bill shifts procurement away from China for some purchases, improving supply-chain transparency and reducing reliance on a single foreign source for federally procured drugs.
Hospitals, patients, and taxpayers could face higher drug prices if federal purchasers restrict sourcing to non-China suppliers or face reduced supplier competition, increasing costs for federally funded programs and possibly taxpayers.
Patients with chronic conditions and veterans may experience treatment disruptions if equivalent API supplies outside China are unavailable, risking continuity of care and health outcomes.
Allowing 100% bonus depreciation for qualifying assets (2025–2030) will reduce federal tax receipts in the short term, potentially increasing deficits or requiring future offsetting cuts.
Based on analysis of 3 sections of legislative text.
Limits federal health program drug purchases to APIs largely sourced outside China (60% by 2028, 100% by 2030), adds API country-of-origin labeling, and offers temporary 100% bonus depreciation for U.S. pharma/device manufacturing (2025–2030).
Introduced April 10, 2025 by Thomas Bryant Cotton · Last progress April 10, 2025
Requires federal health programs (HHS, VA, DOD, and other federal health care programs) to buy only drugs whose active pharmaceutical ingredients (APIs) are largely manufactured outside the People’s Republic of China: at least 60% non-China API content starting Jan 1, 2028, and 100% non-China API content starting Jan 1, 2030, with limited waiver authority through Dec 31, 2030. Adds a labeling requirement to identify the country of origin for each active ingredient when not already listed. Temporarily allows 100% bonus depreciation for U.S. pharmaceutical and medical device manufacturing property placed in service from Jan 1, 2025 through Dec 31, 2030 to encourage domestic production.