# The Formula 3.0 Act: Making Infant Formula Cheaper and More Available

This bill removes tariffs (import taxes) on infant formula and the raw ingredients used to make it. Right now, when companies import finished infant formula or the base powder used to manufacture it in the United States, they pay taxes that increase the cost. This bill eliminates those taxes completely, which should lower prices for families buying formula.

The bill specifically targets two things: finished infant formula products that are ready to use, and "infant formula base powder"—a dry mixture of proteins, fats, and carbohydrates that manufacturers add vitamins and minerals to in order to create finished formula. The base powder is particularly important because many U.S. formula manufacturers import these ingredients from other countries and then complete the manufacturing process here. By removing the tax on these imported ingredients, companies can reduce their production costs, which could translate to lower prices on store shelves.

There are some guardrails built in. The bill only allows duty-free imports of infant formula base powder from companies that the FDA has already approved to sell infant formula in the United States, or companies that have received special permission from the FDA to do so. This ensures that only legitimate, regulated manufacturers benefit from the tariff removal and helps maintain safety standards. The changes take effect 120 days after the bill becomes law, giving companies time to adjust their operations.

For consumers, the main benefit is straightforward: cheaper infant formula. Since formula is an essential product that families must buy regularly, even modest price reductions can meaningfully help household budgets. The bill essentially treats infant formula like other essential goods by removing the tax barrier that was making it more expensive than it needed to be.

Formula 3.0 Act

Smith, Adrian

Formula 3.0 Act This bill provides duty-free treatment to certain infant formula and infant formula base powder. The bill defines infant formula base powder as a dry mixture of protein, fat, and carbohydrates that requires only the addition of vitamins and minerals in order to meet the definition of the term infant formula in the Federal Food, Drug, and Cosmetic Act. It must be (1) imported by a party that has been determined by the Food and Drug Administration (FDA) to be authorized to lawfully market infant formula in the United States or has received a letter of enforcement discretion from the FDA relating to the marketing of its infant formula in the United States, and (2) intended to be used in manufacturing infant formula in the United States. The bill also removes the limitation on the aggregate quantity of certain infant formula containing oligosaccharides (carbohydrates) that may enter the United States in any calendar year.