Bill · S. 1407· Senate(119-S-1407)
ABC Safe Drug Act
- Introduced
- 4/10/2025
- Last activity
- 4/10/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Tom Cotton
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the "ABC Safe Drug Act," aims to prohibit federal health programs from purchasing drugs with active ingredients manufactured in the People's Republic of China. Starting in 2028, agencies must ensure at least 60 percent of active ingredients come from approved countries, increasing to 100 percent by 2030. The bill also introduces a new labeling requirement regarding the country of origin for active ingredients. To support this shift, it provides a tax incentive for manufacturing property. This incentive allows for 100 percent expensing for certain pharmaceutical and medical device manufacturing property placed in service before 2031.
Yes· 3 of 7
Does this give people more protection from unfair business practices?+5
Increased labeling transparency provides consumers with more information regarding drug origins.
Would business owners be better off under this?+5
Pharmaceutical manufacturers benefit from new tax incentives for property investment.
Is this likely to create jobs?+4
The tax incentives for manufacturing property are intended to stimulate domestic industry and job growth.
The opposite· 3 of 5
Does this make trade with other countries easier?-2
The bill imposes trade restrictions on pharmaceutical ingredients from China.
Does this lower the price of prescription medicines?-2
Reducing the supplier pool may lead to higher costs for drug procurement by federal agencies.
Would veterans be better off under this, taking everything together?-1
The restriction on drug sources could negatively impact the availability of medications for veterans.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased transparency regarding drug origins: The bill adds a requirement to specify the country of origin for each active ingredient in a drug's labeling, which may provide more information to consumers (Section 2(b)).
-
Encouragement of domestic manufacturing: By providing 100 percent expensing for qualified pharmaceutical and medical device manufacturing property placed in service in the United States, the bill incentivizes the construction or expansion of manufacturing facilities within the country (Section 3).
Potential Negative Impacts for People
-
Limited drug sources for federal programs: Federal agencies such as the Department of Veterans Affairs, the Department of Defense, and the Department of Health and Human Services will be restricted from purchasing drugs where active ingredients are manufactured in the People's Republic of China (Section 2(a)).
-
Potential for supply shortages or unmet requirements: While the Secretary of Health and Human Services can issue waivers for agencies unable to meet the new requirements, these waivers cannot be issued for drugs purchased on or after January 1, 2031 (Section 2(a)(3)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Consumer Protection+5Increases Job Creation+4Improves Economic Growth+3
- Governance And Ideology
- Improves Government Transparency+4Increases Federal Power+2
- Demographic And Interest Groups
- Good For Business Owners+5Good For Veterans-1
- National Security And Foreign Policy
- Improves International Trade-2Improves Veterans Benefits-1
- Healthcare
- Improves Pandemic Preparedness+2Reduces Prescription Drug Costs-2Improves Veterans Healthcare-1
- 4/10/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate