President Donald Trump signed an executive order on Wednesday directing federal agencies to stockpile key pharmaceutical ingredients to reduce America’s dependence on foreign drug supplies.
The order requires filling the Strategic Active Pharmaceutical Ingredients Reserve with six months’ worth of materials for 26 critical medicines. Officials must complete the task within months using existing federal funds.
Only 10% of active pharmaceutical ingredients used in U.S. drugs are manufactured domestically. Nearly 40% of finished prescription drugs are made here.
The executive order criticizes the Biden administration for failing to advance pharmaceutical independence “despite spending billions of dollars on efforts to secure supply chains.” It notes the strategic reserve remains “nearly empty.”
Trump established the reserve during his first term through a 2020 executive order. That directive aimed to boost domestic production of essential medicines and medical supplies.
The Assistant Secretary for Preparedness and Response must develop a list of 26 critical drugs within 30 days. The agency will also identify available funds to finance the reserve.
Officials have 120 days to prepare the existing repository for receiving ingredients. The order prioritizes purchasing domestically manufactured ingredients, “if possible.”
Beyond the initial 26 drugs, the order requires a plan for stockpiling ingredients for 86 essential medicines. The plan must include cost estimates for opening a second reserve facility within one year.
Active pharmaceutical ingredients offer advantages over finished drugs. They typically cost less and last longer on shelves.
The order frames pharmaceutical independence as a national security issue. It warns about “concentration of foreign, sometimes adversary, nations” controlling key drug materials worldwide.