Casey wants to spur baby formula production with new tax credits for producers expanding facilities

21 March 2024- U.S. Senator Bob Casey (D-PA) and U.S. Representative Rosa DeLauro (D-CT-03) introduced the Infant Formula Made in America Act to create a new tax credit program to support new or expanding small U.S. infant formula producers. More than two years after a massive infant formula recall impacted families across the Nation, Casey and DeLauro are taking action to increase domestic formula production so that parents are able to feed their children without fear of contaminated formula.

“The infant formula shortage was a terrifying burden on families. Too many parents and caregivers were left tired and scared, and we need to make sure this never happens again—there is no greater fear than not being able to feed your child,” said Senator Casey. “The Infant Formula Made in America Act is a vital step in expanding the supply chain, investing in American manufacturers, and keeping infant formula on the shelves.”

In May 2022, as it became increasingly difficult for families to access infant formula following a massive recall of contaminated infant formula from major supplier, Abbott Nutrition, Senator Casey led 30 of his colleagues in a letter to the Infant Nutrition Council of America, calling on infant formula manufacturers to make every effort possible to get parents and families the formula they need to feed their kids. Shortly after, Casey introduced the Protect Infants from Formula Shortages Act to protect families and patients who rely on infant formula by requiring manufactures to notify the FDA of potential supply disruptions and give the FDA additional tools to work with manufacturers to help prevent potential shortages. The bill advanced out of the Senate Health, Education, Labor and Pensions (HELP) Committee as a part of the bipartisan Food and Drug Administration Safety and Landmark Advancements Act, setting up the legislation to pass via the Fiscal Year 2023 spending bill in December.

The FDA took steps to evaluate and remediate the crisis—releasing a report and a commitment to making changes, including the announcement that they had already started making changes to their processes. The agency enlisted an independent entity to recommend how they can do better in the future and further, developed a strategy to prevent foodborne illnesses from contaminated formula.

This bill creates a new tax credit program to support new or expanding small infant formula producers in the United States. This could create a secure, diversified domestic industry capable of meeting children’s and families formula needs. Small infant formula producers—those with less than $750 million in revenue—will be eligible for support to help them grow to compete in this concentrated market.

The Infant Formula Made in America Act is cosponsored by U.S. Senator Martin Heinrich (D-NM).

Read more about the Infant Formula Made in America Act here.