Two Democrats are introducing a bill to create a more stable market for the essential product.
More than two years after safety concerns at a major infant formula manufacturing plant sparked a nationwide shortage, two Democratic lawmakers areThe question now is whether the hundreds of lawmakers in both parties who declared the shortage a crisis in 2022 still remember the desperation parents felt then — and whether these representatives and senators can act on behalf of the babies who rely on formula now.
The manufacturing tax credits could be the boost that formula brands need to buy or build their own manufacturing facilities rather than relying on contract manufacturers such as Perrigo, which also makes private-label formulas for chain stores. Those credits might also encourage companies with existing factories to build excess production capacity so they could scale manufacturing up quickly in the event of a shortage.
Scale matters for reasons other than pure competition. Upstart companies such as Bobbie or ByHeart, which operates its own factories, have not yet grown large enough to pursue the state-level contracts to provide formula at reduced costs to participants in the Special Supplemental Nutrition Program for Women, Infants and Children. Those families were especially vulnerable during the shortage because they could use their benefits to purchase only a single brand of formula.
Despite the bipartisan expression of urgency about the shortage in 2022, and despite their care in focusing on time-limited tax credits rather than an ongoing appropriation, both Casey and DeLauro told me they’ve yet to find Republican co-sponsors for the House and Senate versions of the bill.
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