“If you bid them out we'll save $300 billion … and we don't even do it. We're going to do it.”
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Trump's first term produced no competitive-bidding or direct-negotiation program for government drug purchases; the administration's principal pricing action, the November 2020 Most Favored Nation (MFN) interim final rule for Medicare Part B, was blocked by federal courts in December 2020 and rescinded in December 2021 without taking effect. In his second term, Trump signed a May 2025 MFN executive order and by December 2025 had announced MFN pricing agreements with nine major manufacturers that the White House says will yield billions of dollars in savings. These are genuine, repeated attempts to cut what government programs pay for drugs, but the promised bidding mechanism and $300 billion in savings had not materialized as of July 2026.
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