ABC Safe Drug Act
Sponsored By: Senator Sen. Cotton, Tom [R-AR]
Introduced
Summary
Cut U.S. ties to Chinese active pharmaceutical ingredients while pushing factories and disclosure back home. The bill would block many federal health programs from buying drugs unless their active ingredients come from countries other than the People's Republic of China that meet FDA safety standards, and it would boost U.S. drug and device factories with a temporary tax write-off.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Drug label country-of-origin rule
If enacted, drug labels would have to list the country where each active ingredient was made. The bill would add this requirement to the Federal Food, Drug, and Cosmetic Act. Drug makers and labelers would need to update labels when the law takes effect.
100% expensing for pharma plants
If enacted, companies that build or expand U.S. drug or medical device plants could deduct the full cost of qualifying buildings and equipment in the year placed in service. This 100% expensing would apply to property placed in service after December 31, 2024 and before January 1, 2031 (not applying to property placed in service after December 31, 2030).
Federal drug sourcing limits
If enacted, federal health agencies could only buy certain drugs based on where active ingredients are made. Starting January 1, 2028, purchases must have at least 60% of APIs made in qualifying non-China countries that meet FDA standards. Starting January 1, 2030, purchases must have 100% of APIs made in those countries. HHS could grant waivers for programs that show need, but no waivers would be allowed for drugs bought on or after January 1, 2031.
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Sponsors & CoSponsors
Sponsor
Sen. Cotton, Tom [R-AR]
AR • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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