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WASHINGTON D.C. — U.S. Representative Zach Nunn (IA-03) today 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.
“Just 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,” said Rep. Nunn. “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. This 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.
“There are only a handful of American companies that make infant formula, so our nation was shaken in 2022 when a supply chain crisis hit the industry and left store shelves empty,” said Rep. Houlahan. “We need to strengthen our supply chain, and can do that by supporting small, domestic infant formula manufacturers like those in my community in Pennsylvania. This bipartisan tax credit proposal would promote competition, sustain production growth, and ensure greater access to infant formula options for families nationwide. I’m proud to work with across the aisle with Representatives DeLauro and Nunn on this important effort.”
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 2022 infant formula shortage was generated because of two key issues: food safety and supply,” said Rep. 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 bipartisan Infant Formula Made in America Act of 2025 would create a transferrable 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. Additionally, this bill provides a production tax credit to allow companies to receive $2.00 per pound of infant formula produced.
Text of the bill can be found here.
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