White House Says Trump’s Drugmaker Deals Could Save U.S. Economy $529 Billion Over 10 Years
The White House is putting a new price tag on President Donald Trump‘s prescription drug campaign, saying voluntary agreements with major drugmakers could save the U.S. economy $529 billion over the next decade.
The estimate comes from White House economists analyzing Trump’s “most favored nation” drug-pricing push, a policy designed to bring U.S. prices closer to those paid in other wealthy countries. According to The Associated Press, the White House says agreements with 17 pharmaceutical companies could generate broad economic savings by lowering prescription drug costs, reducing public health spending, and easing financial pressure on households, employers, and government programs.
Reuters reported that a much narrower estimate released by the administration projects $64.3 billion in federal and state health care savings over 10 years, largely through Medicaid. That figure is tied to agreements that require participating manufacturers to offer newly launched drugs in the United States at prices comparable to those in other high-income countries.
The policy is part of Trump’s broader effort to revive and expand “most favored nation” pricing, which he advanced through a May 2025 executive order directing federal officials to seek lower prices from drugmakers or pursue pricing rules if voluntary deals failed. Since then, the White House has announced deals with companies including Pfizer, AstraZeneca, and other major manufacturers. Pfizer agreed to lower prices for Medicaid recipients and participate in TrumpRx, a federal direct-to-consumer drug pricing platform.
AstraZeneca later struck a similar agreement, including Medicaid discounts and participation in TrumpRx. The White House said in December that Trump had announced 14 pharmaceutical deals since Sept. 30, 2025, with manufacturers agreeing to bring prices closer to those paid in other developed nations.
Nine companies, including Merck, Bristol Myers Squibb, Gilead, Roche’s Genentech, Novartis, Amgen, Boehringer Ingelheim, Sanofi, and GSK, agreed to price reductions for Medicaid beneficiaries and cash-paying customers.
The administration has framed the effort as a major cost-of-living measure ahead of the 2026 midterm elections. But the projected $529 billion in economic savings depends on assumptions that remain contested. AP reported that the White House analysis assumes other countries may pay more for some drugs, helping pharmaceutical companies offset lower U.S. prices without significantly reducing revenue.
Democrats like Senate Finance Committee Ranking Member Ron Wyden, D-Ore. have called for greater transparency. “If these deals are so great, why is the Trump administration afraid of showing them to the public?” he said.
