DeLauro, Casey Introduce Infant Formula Made in America Act
Legislation to give small infant formula manufacturers a boost in heavily consolidated market
Today, U.S. Representative Rosa DeLauro (D-CT-03) and U.S. Senator Bob Casey (D-PA) introduced the Infant Formula Made in America Act, legislation that would create a new tax credit program to support new or expanding small U.S. infant formula producers.
In February 2022, following reports of illnesses and deaths of babies due to contaminated formula, a voluntary recall of powdered infant formula products was issued along with a shutdown of a major manufacturing plant. This strained supply chains and triggered a national shortage of infant formula.
By May 2022, nearly half of formula products were out of stock nationwide. While the federal government acted to temporarily allow the importing of infant formula from abroad, a permanent solution that supports U.S. businesses and workers while prioritizing the unraveling of the heavily consolidated infant formula market – in which 4 companies control nearly 97 percent of the market – is desperately needed.
“The 2022 infant formula shortage was generated because of two key issues: food safety and supply,” said Congresswoman DeLauro. “It left families and parents scrambling to find infant formula on scarce shelves, and facing the fear that the formula they had purchased may not be safe for their baby’s consumption if they even found it. No parent should face this, and it is why I am committed to enacting policies that prevent a future shortage. While I have introduced several bills to improve food safety, we must also unravel the heavily consolidated market that greatly contributed to the 2022 shortage. The Infant Formula Made in America Act would give smaller manufacturers a boost to compete with giants in the industry and improve market diversity.”
“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.”
“It took a national crisis of America not being able to feed babies to realize how badly the infant formula industry needs to be reformed, to break up concentration with choices that are accessibly priced for the American family,” said Laura Modi, CEO and Co-Founder of Bobbie. “This bill supports rebuilding manufacturing resiliency in America for new, smaller players so we are never one bacteria away from another shortage. I’m so grateful to Congresswoman DeLauro and Senator Casey for championing this long-term solution; American families and our next generation deserve it.”
The Infant Formula Made in America Act would spur the creation of secure, diversified domestic industry capable of meeting children’s and families’ formula needs by establishing a new tax credit program to support new or expanding small U.S. infant formula producers. Small formula producers would be eligible for support to grow so they are able to compete in this concentrated market. To be eligible for the tax credit program, infant formula would need to be produced and sold in America.
The legislation is endorsed by Bobbie, the National Milk Producers Federation, CROPP Cooperative, Organic Valley, and the North America Society for Pediatric Gastroenterology, Hepatology and Nutrition.
A fact sheet on the legislation is available here. The bill text is available here.
When the infant formula shortage began in spring 2022, DeLauro worked to get safe infant formula back on the shelves to ensure parents could feed their babies. She unveiled a whistleblower report that highlighted the failures of the manufacturer and the Food and Drug Administration (FDA). She supported enactment of the Access to Baby Formula Act, which provided WIC flexibility so families could continue purchasing formula.
Moreover, she introduced legislation, the Keep Infant Formula Safe and on the Shelves Act, which would improve product safety, keep workers safe, and maintain supply. The legislation also would have made cronobacter, the disease that contaminated the recalled product in 2022, a reportable disease – something DeLauro repeatedly called for following the recall. The Centers for Disease Control (CDC) made cronobacter a reportable disease in January 2024.
“The food we give our babies should be the safest products on the market,” continued DeLauro. “It is time to secure the domestic supply of infant formula and ensure no giant corporation can cut corners in production that would result in harm to American families or babies.”