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CPA Supports Legislation to Expand Domestic Production of COVID-19 Supplies

February 03, 2021

Senate bill would use Defense Production Act to increase American-made medical components

Washington. The Coalition for a Prosperous America (CPA) is praising newly introduced legislation by Sens. Tammy Baldwin (D-WI) and Chris Murphy (D-CT) that would allocate $10 billion for domestically produced pandemic supplies. Specifically, the bill would use the Defense Production Act (DPA) to expand U.S. production of urgently needed healthcare resources, including testing materials, personal protective equipment (PPE), and medical supplies.

“U.S. manufacturers stand ready to meet the ongoing challenges of the COVID-19 pandemic,” said CPA Chair Zach Mottl. “One of the key lessons we’ve learned over the past year is that the United States must reduce its troubling dependence on overseas supply chains. Ramping up domestic manufacturing of  pharmaceuticals and healthcare equipment would create thousands of good-paying jobs while also securing timely supplies of needed healthcare components.” 

Recently, President Biden ordered the use of the Defense Production Act to accelerate domestic manufacturing of key medical equipment. The legislation unveiled by Sens. Baldwin and Murphy would invest $10 billion in domestically manufactured medical supplies to meet DPA needs.

Last year, CPA published research that found the reshoring of U.S. medical equipment production could create 302,000 jobs and add $54 billion to U.S. gross domestic product. A similar CPA study determined that rebuilding America’s pharmaceutical manufacturing sector could create 804,000 U.S. jobs and add $200 billion to annual GDP in the first year.

“This bill should be a no-brainer,” said Michael Stumo, CEO of the CPA. “The United States can’t afford further shortages of medications and medical equipment. We urge Congress to move this legislation forward as swiftly as possible in order to secure America’s medical supply chains.”

Read more about the benefits of rebuilding America’s medical equipment and pharmaceutical manufacturing sectors.


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