Press Releases

U.S. Representative Earl L. "Buddy" Carter (R-Ga.-01) and U.S. Senator Tim Scott (R-Sc.) introduced a proposal today to make the U.S. pharmaceutical supply chain less dependent on foreign countries such as China.

According to the Food and Drug Administration, approximately 72 percent of active pharmaceutical ingredients (API) used in the U.S. drug supply are manufactured in more than 150 countries, with 13 percent coming from China alone. The Manufacturing API, Drugs, and Excipients (MADE) in America Act will work to mitigate drug shortages while incentivizing the domestic manufacturing of drugs, API, personal protective equipment (PPE), and diagnostics. This will be achieved through a new tax credit for manufacturers that operate in certain American Opportunity Zones. 

"The COVID-19 pandemic has made it more clear than ever that America cannot continue to rely on foreign entities like China for anything, especially when it comes to lifesaving medications," said Carter. "The reason our pharmaceutical and medical supply chains are dependent on nations like China and India is simple. They can produce cheaper factories, provide lower-cost labor, utility costs and raw materials, impose fewer regulations, and more. This legislation is designed to significantly reduce the advantage that foreign countries provide and encourage companies to maintain, expand or relocate their production activities back to the United States and its territories through a tax credit that will serve the most disadvantaged communities in our nation. I appreciate Senator Scott working with me on this important mission to secure America's pharmaceutical independence." 

"As the nation begins to reopen, Opportunity Zones will play a critical role in our economic recovery,” Scott said. “Additionally, one major lesson we have learned from the COVID-19 crisis is that our pharmaceutical and medical supply chains are overly dependent on foreign nations. By combining the promise of Opportunity Zones and the need to bring our supply chains back home, MADE in America is a two for one deal that will make our nation stronger for years to come. I want to thank Representative Carter for his hard work on this important proposal.”

The MADE in America Act would address vulnerabilities in the U.S. supply chain in two distinct ways.

First, for America's national security, the legislation incentivizes the domestic manufacturing of drugs, API, PPE, and diagnostics in order to make the U.S. supply chain less dependent on foreign countries like China. This is achieved through a new tax credit that would only apply to manufacturers operating in certain Opportunity Zones across the United States. This will work to bring manufacturing back to the United States through incentives aimed at leveling the playing field, rather than through punitive and ultimately counter-productive mandates.

Additionally, the legislation includes measures aimed at mitigating drug shortages including improving FDA reporting of facility inspections, working more closely with overseas regulators and streamlining FDA standardization processes for overseeing pharmaceutical manufacturing and the supply chain. 

Representative Carter introduced the legislation in the House, and Senator Scott is circulating a legislative discussion draft in the Senate.