South Iowa News

U.S. Representative Zach Nunn has introduced a bipartisan bill aimed at preventing future infant formula shortages. The legislation, named the Infant Formula Made in America Act of 2025, is co-led by Representatives Chrissy Houlahan and Rosa DeLauro. The bill seeks to diversify the formula supply chain by supporting small-sized manufacturers within 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, a significant shortage occurred when nationwide out-of-stock rates reached 70%, largely due to two brands accounting for 60% of the shortfall. This was exacerbated by a February 2022 recall from a facility responsible for producing 43% of U.S. formula consumption, which increased out-of-stock levels dramatically.

“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.”

Rep. DeLauro emphasized that food safety and supply issues led to the shortage: “The 2022 infant formula shortage was generated because of two key issues: food safety and supply.” She highlighted the need for policies preventing future shortages and noted that market consolidation contributed significantly to past problems.

The proposed act includes provisions for transferrable tax credits for small domestic manufacturers, offering a credit equal to 30% of qualified investments per taxable year and providing a production tax credit of $2 per pound of produced infant formula.