This bill aims to reduce America's dependence on Chinese-manufactured pharmaceutical ingredients by gradually phasing out federal purchases of drugs containing ingredients made in China. Starting in 2028, federal health programs like Medicare, the VA, and the Department of Defense can only buy drugs where at least 60% of the active ingredients come from non-Chinese sources that meet FDA safety standards. By 2030, this requirement jumps to 100%—meaning all active ingredients must come from countries other than China. The bill includes an escape hatch: if a federal program can't find suitable alternatives, the Health and Human Services Secretary can grant temporary waivers, but these waivers expire on January 1, 2031. To encourage American pharmaceutical manufacturing, the bill also offers tax incentives allowing companies to immediately write off 100% of the cost of new drug and medical device manufacturing equipment placed in service between 2025 and 2030, rather than depreciating it over time. Additionally, drug manufacturers will be required to clearly label which country each active ingredient comes from so consumers and government agencies can make informed choices.

ABC Safe Drug Act

Cotton, Tom

Anyone But China Safe Drug Act or the ABC Safe Drug ActThis bill restricts federal health care programs from purchasing drugs with active ingredients manufactured in China and provides tax incentives for the purchase of certain pharmaceutical and device manufacturing property for use in the United States.The bill phases in restrictions on federal health care programs’ purchase of drugs. By January 1, 2030, federal health care programs may not purchase any drug that contains active ingredients from China or countries that do not meet the health and safety standards of the Food and Drug Administration. The Department of Health and Human Services may issue a waiver for an agency or program that is unable to meet this requirement; this waiver authority expires in 2031. The bill also requires all drugs to be labeled with the country of origin of each active ingredient in the drug. Drugs that are not labeled with this information are deemed misbranded.Finally, the bill allows 100% tax expensing for qualified pharmaceutical and medical device manufacturing property placed in service between 2025 and 2030. Qualified pharmaceutical and medical device manufacturing property is any tangible property placed in service in the United States as part of the construction or expansion of property for the manufacture of drugs or devices.