Domestic Manufacturing Revitalization Act of 2026
Sponsored By: Senator Cassidy, Bill [R-LA]
Introduced
Summary
Creates a package to jumpstart domestic PPE production and steer hospital purchases toward U.S.-made supplies. This bill would pair a Medicare pilot that reimburses hospitals for buying qualifying domestic personal protective equipment with tariffs and tax credits to encourage U.S. manufacturing.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 1 costs, 2 mixed.
20% PPE factory investment credit
If enacted, the bill would give a 20% investment tax credit for qualified PPE manufacturing property placed in service after Dec. 31, 2025 and before Jan. 1, 2036. The facility must be in the U.S. and mainly used to make qualified PPE. Property placed in service in 2026 or 2027 must meet at least 60% domestic content; property placed in service after Dec. 31, 2027 must meet at least 75% domestic content.
Per-item PPE production credit
If enacted, the bill would create a per-item tax credit for qualifying PPE made in the United States and sold to unrelated buyers. Credit amounts would be $0.25 per N95, $0.10 per surgical mask, $0.05 per medical glove, $0.50 per gown, and $250 per ventilator or major equipment. Items must meet HHS safety certification and domestic-content tests (60% for 2026–2027, 75% after 2027). The credit would apply to PPE produced after Dec. 31, 2025 and end on Dec. 31, 2035.
Higher import duties and funding
If enacted, the bill would raise U.S. duties on listed PPE and consumables toward a 300% equivalent. The increase phases in: a 10% share of the total at 180 days, 25% at 2 years, 50% at 4 years, and the full rate at 5 years. Treasury would transfer the extra duties collected each year to HHS to pay the Medicare pilot; any money left after reimbursements would go to the Medicare Part A trust fund. Importers would pay higher duties as the rates phase in, which could raise downstream prices.
Medicare pilot to buy U.S. PPE
If enacted, the bill would require HHS to set up a Medicare pilot within 2 years to pay hospitals that buy "domestic" PPE and medical supplies. Participating hospitals would need to buy at least 40% domestic PPE at first, with the Secretary able to change that share for emergencies. Hospitals must report purchases on Medicare cost reports and collect yearly manufacturer attestations under penalty of perjury. Each year HHS would reimburse hospitals dollar-for-dollar for reported domestic purchases using tariff money. After the third program year, hospitals that miss the buying rules could face escalating Medicare payment cuts (2% up to 8%), and those cuts can continue after the pilot ends.
Limit on claiming both PPE credits
If enacted, the bill would bar taxpayers from claiming the 20% investment credit for a PPE facility and also claiming the per-item production credit for PPE made at that same facility in the same taxable year. If you take the investment credit for property that is part of a facility, you could not take the production credit for items from that facility that year.
Sponsors & CoSponsors
Sponsor
Cassidy, Bill [R-LA]
LA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov