Federalbrief
Dec 29, 2025

President Donald Trump on Friday announced a new agreement with a major pharmaceutical manufacturer that will tie the

Trump Announces Major Drug Pricing Agreement Aimed At Lowering Costs



President Donald Trump on Friday announced a new agreement with a major pharmaceutical manufacturer that will tie the company’s U.S. drug prices to the lowest rates offered in other developed countries, expanding the administration’s “most-favored-nation” policy for prescription drug costs.

 

The deal, unveiled during an Oval Office event with AstraZeneca Chief Executive Officer Pascal Soriot, follows a similar arrangement the administration announced in September with Pfizer. It marks the second major pharmaceutical pricing agreement under the White House’s executive order seeking to reduce medication costs for Medicaid and direct-to-consumer purchases.

Under the terms described by the White House, AstraZeneca will provide “most-favored-nation,” or MFN, pricing to all state Medicaid programs, meaning that U.S. patients will pay no more than the lowest price available for the same drugs in other developed countries. The administration said the agreement could save American taxpayers hundreds of millions of dollars annually.

“For many years, Americans have paid the highest prices anywhere in the world for prescription drugs,” Trump said. “Today, AstraZeneca is committing to offer all of their prescription medications to Medicaid at the most-favored-nation price—the lowest price anywhere in the world.”

The administration said the deal will benefit about 9 million patients currently taking AstraZeneca products. It will apply to a range of the company’s medications, including those used to treat asthma, chronic obstructive pulmonary disease (COPD), cardiovascular conditions, and cancer.

The agreement also includes a commitment from AstraZeneca to invest $50 billion in U.S. manufacturing and research and development by 2030. According to a White House fact sheet, the company will build a new pharmaceutical production facility in Charlottesville, Va., which is expected to create 3,600 jobs.

The new site will manufacture active pharmaceutical ingredients used in the company’s respiratory and oncology products.

The administration said the most significant price reductions will be seen in certain respiratory medicines. For example, the COPD treatment BEVESPI AEROSPHERE will reportedly be discounted by an average of 654 percent, while AIRSUPRA, an inhaler for asthma, will see a 96 percent price reduction for direct buyers. The company will also extend discounts to consumers who purchase drugs directly through a federal platform currently being developed by the Department of Health and Human Services.

Friday’s announcement comes just 10 days after Trump revealed a similar MFN agreement with Pfizer, which agreed to provide Medicaid with lower drug prices and participate in the new “TrumpRx” online platform.

That site will allow patients to buy medications directly from manufacturers at substantial discounts compared with retail pharmacy prices. Pfizer said at the time that many of its products, including vaccines, blood thinners, and cancer treatments, would be available at an average discount of 50 percent through the program.

The “most-favored-nation” pricing initiative is part of Trump’s broader effort to reduce the gap between U.S. and foreign prescription drug prices. The administration argues that American consumers have been subsidizing lower costs abroad because foreign governments use price controls and centralized purchasing to negotiate cheaper rates, while U.S. law restricts similar negotiations for federal programs like Medicare.

According to data cited by the White House, Americans pay more than three times as much as residents of other high-income countries for the same brand-name medications, even after accounting for rebates and insurance discounts. Officials said the new pricing model is intended to prevent pharmaceutical companies from charging higher prices domestically while offering lower prices internationally.

In addition to lowering drug costs, the administration said the AstraZeneca agreement will strengthen domestic supply chains and reduce reliance on overseas production. The White House said the Virginia facility would serve as a “strategic hub” for the production of advanced pharmaceutical ingredients used in chronic disease treatments.

The president framed the announcement as part of his ongoing effort to ensure that American patients “get the best deal anywhere in the world” on prescription drugs.

“This agreement will bring immediate relief to millions of Americans struggling with the cost of their medications,” Trump said. “It’s another step in putting American patients first.”

Democrat Party Weaknesses Revealed Amid Ongoing Govt. Shutdown

An op-ed published over the weekend painted a bleak political outlook for Democrats heading into next year’s midterms.

The op-ed by conservative commentator and former Wall Street executive follows Democratic Senate Minority Leader Chuck Schumer’s last week to deny Republicans enough votes to keep the government open and funded at current levels.

Writing in The Hill, Peek blamed the shutdown squarely on Schumer, noting that it “highlights three weaknesses undermining the Democratic Party as we head toward next year’s midterm elections.”


For one, she notes, Democratic Party leadership continues to face pressure from its progressive wing, which has gained significant influence over the party’s agenda. Schumer is reportedly wary of a potential primary challenge from New York Representative Alexandria Ocasio-Cortez, a dynamic that observers say may be shaping some of his recent political decisions.

“Second, President Trump has pushed Democrats to burrow into their far-left rabbit holes by occupying the all-powerful center,” Peek added. “Third, Democrats are pushing endlessly to spend more money; voters think that’s a mistake.”


Schumer is facing renewed pressure from within his party following backlash over his decision earlier this year to work with Republicans to avert a government shutdown. The move angered many Democrats, who accused him of conceding too much in negotiations, she says.

In the weeks that followed, some progressive activists and lawmakers called for Ocasio-Cortez (D-N.Y.) to mount a primary challenge against Schumer in the 2028 Senate race, Peek noted.

Polling from the left-leaning firm Data for Progress conducted after the March spending vote indicated growing dissatisfaction among Democratic voters. The survey found that Schumer had the lowest favorability rating among prominent New York Democrats and that he trailed Ocasio-Cortez by 19 points in a hypothetical primary matchup, the conservative analyst went on

Once known for his opposition to government shutdowns, Schumer now appears to be taking a more hardline stance, a shift that some political analysts attribute to pressure from his party’s progressive wing, she noted, adding:

Schumer is not the only moderate Democrat looking over his shoulder. In an August interview with Fox News, former House Speaker Kevin McCarthy (R-Calif.) said, “The only Democrats out there that are resonating and getting money are the socialists.”

He is right. All of the funding, excitement and energy in the Democratic Party is behind progressives. That may work in New York or other deep-blue states, but it’s unlikely to work in swing states like Pennsylvania or Ohio.

Right now, it isn’t even working in Minneapolis, where democratic socialist candidate Omar Fateh is trying to oust incumbent Democratic Mayor Jacob Frey. In a major slap in the face, the Democratic-Farmer-Labor Party, the official Democrat organization in Minnesota, rescinded the city party endorsement of Fateh.

As in New York, it is the young, urban voter driving the leftward push. Minnesota went for Kamala Harris last November by only 4 points, even though her running mate, Tim Walz, is governor of the state. Currently, polls show Fateh trailing Frey by about 13 points.

Young voters have emerged as a key source of support for Democratic Socialist candidate Zohran Mamdani, who is leading the race for mayor in heavily Democratic New York City. Mamdani’s message — focused on “unrealistic promises to make life more affordable,” as well as opposition to Israel’s policies, has resonated strongly with progressive voters, Peek noted.

Polling shows Mamdani ahead of former Governor Andrew Cuomo in the Democratic primary. Campaign finance filings indicate he has raised substantially more money than Cuomo, bolstered by contributions from major donors including philanthropist Elizabeth Simons, daughter of hedge fund founder James Simons, and by groups connected to organizations linked to left-wing financier George Soros.

“Democrats’ leftward lunge may have endeared the party to progressive billionaires, but it’s unlikely to improve the party’s image or win back the White House in 2028. Progressives are notoriously anti-police and anti-ICE; they favor open borders and extending benefits to non-citizens,” writes Peek.

Thune Erupts in Rare Anger, Blasts Dems for ‘Holding Government Hostage’ Amid Shutdown



Senate Majority Leader John Thune (R-SD), typically known for his calm, measured demeanor, erupted in frustration on the Senate floor Wednesday, accusing Democrats of prolonging the government shutdown and using social welfare programs as political leverage.

Thune’s rare display of anger came during a heated exchange over legislation to temporarily fund the Supplemental Nutrition Assistance Program (SNAP), which provides food aid to low-income families.

Democrats, led by Sen. Ben Ray Luján (D-NM), pushed for a standalone bill to keep SNAP benefits flowing as the shutdown approached its 30th day.

Thune fired back, noting that Republicans had already voted 13 times to reopen the government, only to be blocked by Senate Democrats.

“Let me just point out, if I might, that we are 29 days into a Democrat shutdown,” Thune said, his voice rising. “SNAP recipients shouldn’t go without food. People should be getting paid in this country. And we’ve tried to do that 13 times. You voted no 13 times.”

As Democrats pressed for an immediate vote, Thune grew visibly exasperated, turning toward the Democratic side of the chamber.

“You all just figured out, 29 days in, that, oh, there might be some consequences? There are people who’ll run out of money? Yeah, we’re 29 days in,” he said, slapping the lectern for emphasis. “At some point, the government runs out of money. My aching back. You finally realize this thing has consequences.”

The exchange underscored the deepening frustration among Senate Republicans, who argue that Democrats are deliberately stalling a reopening of the government to extract concessions on unrelated spending priorities, including renewed subsidies under the Affordable Care Act.

“This isn’t a political game,” Thune said. “These are real people’s lives that we’re talking about.”

WATCH:


The impasse comes as millions of SNAP recipients face the prospect of missing benefits at the end of the month.

Both parties have introduced competing bills to address the program’s funding lapse. Luján’s Democratic-backed measure focuses solely on SNAP, while Sen. Josh Hawley (R-MO) has proposed a broader Republican bill that includes funding for both food aid and military pay.

Thune, however, dismissed both standalone efforts as distractions from the larger issue — Democrats’ refusal to approve a continuing resolution that would reopen the government in full.

“We don’t need one-off fixes,” Thune told reporters after his floor speech.

“We need to pass a clean, bipartisan bill and get people back to work.”

Democrats, led by Senate Minority Leader Chuck Schumer (D-NY), have insisted they will not back the GOP’s proposed continuing resolution unless it includes a long-term extension of healthcare subsidies. Republicans have accused them of holding the government “hostage” to force through a partisan health care agenda.

Behind the scenes, there are signs of movement. Thune told reporters earlier Wednesday that bipartisan talks had “ticked up significantly” and that discussions with key Democrats were “constructive.” Asked when he would personally step into negotiations, Thune replied, “It will happen pretty soon.”

Still, Thune’s eruption on the floor reflects mounting impatience within the GOP. Normally even-tempered, the senator apologized afterward for his outburst but said Democrats’ tactics had left him no choice.

“Sorry, I channeled a little bit of anger there,” he told reporters. “But it’s a high level of frustration. They realize this is a losing argument. They’re trying to buy time — and every day they delay makes things worse.”

The government shutdown, now nearing its fifth week, has furloughed hundreds of thousands of federal workers and frozen pay for millions more. Essential programs such as food assistance and housing vouchers are operating on borrowed funds.

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The White House has also applied pressure, with President Donald Trump declaring earlier this week that “Schumer and Senate Democrats are holding the entire government hostage.”

“You can call it the Schumer shutdown or the Democrats’ shutdown,” Trump said during a Rose Garden event on Tuesday. “They’re doing the wrong thing, and the public knows it.”

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