President Donald Trump is expected to sign an executive order Monday aimed at dramatically lowering prescription drug prices in the United States.
The order introduces a new pricing model that ties U.S. drug costs to the lowest prices paid in other countries. Trump announced the move Sunday evening on his Truth Social platform, calling it “one of the most consequential Executive Orders in our nation’s history.”
What the order does
The executive order directs federal health agencies to enforce a “most favored nation” policy. Under this model, the U.S. will pay no more for medications than the lowest-priced country globally.
“Prescription drug and pharmaceutical prices will be reduced, almost immediately, by 30% to 80%,” Trump wrote. “Our citizens’ healthcare costs will be reduced by numbers never even thought of before.”
He added that the policy will help the U.S. save trillions of dollars in public healthcare spending.
Why now?
Trump has repeatedly criticized the pharmaceutical industry for charging Americans far more than patients in other countries. In his social media post, he accused drug companies of hiding behind inflated research and development costs.
“For years, they claimed the extra costs were for innovation. In reality, those costs were unfairly passed on to the American people,” Trump said.
By tying drug prices to international benchmarks, the administration hopes to neutralize those pricing disparities.
What happens next?
The executive order takes effect immediately, though implementation will require rule-making by federal agencies. It remains unclear which drugs will be affected first or how quickly consumers will see changes at the pharmacy counter.
Health policy experts expect legal challenges from the pharmaceutical industry. However, Trump says the federal government is prepared to defend the measure.
“I will not be bought,” he wrote, referencing the influence of drug company lobbyists and campaign contributions.
Background on U.S. drug pricing
The U.S. consistently pays more for prescription medications than any other developed country. Proposals to lower prices have circulated in Congress for years but have faced heavy opposition from pharmaceutical companies.
Trump previously introduced a similar rule during his first term, but courts blocked it before it took effect. This latest executive action revives that effort with broader language and more direct enforcement.
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.