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Tuesday, March 11, 2025

Nunn Introduces Bipartisan Bill to Prevent Infant Formula Shortage

Nunn Introduces Bipartisan Bill to Prevent Infant Formula Shortage

WASHINGTON D.C. — U.S. Republican Representative Zach Nunn, from Iowa’s 3rd District, Monday, introduced bipartisan legislation to help prevent another infant formula shortage. The Infant Formula Made in America Act of 2025, which is co-led by U.S. Representatives Chrissy Houlahan (PA-06) and Rosa DeLauro (CT-03), will diversify the formula supply chain by supporting small-sized manufacturers based in the United States. In a press release, Representative Nunn said “Just a few years ago, millions of parents were scrambling to feed their babies – some even traveling miles or paying out-of-this-world prices just to get the formula their child needed. We may be past that crisis now, but we should work to stop this from ever happening again. By supporting small-sized American manufacturers making infant formula, we can prevent another shortage and keep children fed and happy.”

In May 2022, the infant formula shortage hit critical levels as nationwide out-of-stock rates reached 70% with just two brands accounting for 60% of the shortfall. The shortage was the result of not only the pandemic but also a February 2022 recall from a facility estimated to produce 43% of the total consumption of formula in the U.S. The shutdown immediately skyrocketed out-of-stock levels of infant formula to 25%, up from 11% in December 2021, and continued to increase into the summer.

Infant formula is the most highly regulated food. In the U.S., oversight and regulation of infant formula is akin to pharmaceuticals rather than food products. Due to the high and costly barriers to entry, there had not been a single new manufacturer registered with the FDA in 15 years until 2022. The bipartisanR39;Infant Formula Made in America Act of 2025 would create a transferable tax credit for small, domestic infant formula manufacturers across the nation. For any taxable year, manufacturers may receive a credit equal to 30% of their qualified investment, including manufacturers impacted during the height of the infant formula shortage crisis in 2022. Additionally, this bill provides a production tax credit to allow companies to receive $2.00 per pound of infant formula produced.

 

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