President Trump has taken steps to address the high cost of prescription drugs in the United States by signing an Executive Order on May 12, 2025, to establish Most-Favored-Nation (MFN) Pricing for pharmaceutical products. This measure is intended to ensure that Americans pay prices comparable to those in similarly developed countries. The announcement includes a new agreement with Pfizer aimed at reducing unfair prescription drug prices.
“President Trump’s bold action today to address the root causes of the outrageous and unfair prices paid for prescription drugs by Americans are much welcomed and long overdue—the status quo of the American consumer subsidizing the global market is over,” said Rep. Chris Smith (R-NJ).
Smith noted that U.S. consumers have historically paid higher prices for medication compared to other nations, often subsidizing research and development costs for drugs used worldwide. “For too long, government policies of foreign nations have disadvantaged the United States and forced American patients to pay more for the exact same medication, while at the same time subsidizing the research and development of such drugs, forcing Americans to decide between putting food on the table or buying lifesaving medications for their families,” Smith said.
The United States invests heavily in drug development but faces some of the highest prescription drug costs due to what officials describe as global freeloading. Smith highlighted this disparity: “As Secretary Kennedy noted, the exact same drug, many times manufactured in the same factory right here in New Jersey, is sold in Great Britain for one-tenth the price it is sold for here. Today’s announcement with Pfizer presents a clear path forward on how to deliver better patient outcomes to all Americans seeking healthcare and reinvigorate American manufacturing through renewed investment in American jobs to create high-quality products that save American lives.”
Under the joint agreement negotiated by President Trump, every State Medicaid program will gain access to MFN drug prices on Pfizer products. This move is expected to reduce costs and strengthen Medicaid’s fiscal health while improving care for vulnerable populations.
The initiative also introduces a direct-to-consumer website called TrumpRx, which allows Americans to purchase medicine at discounted rates without insurance.
“Millions of Americans with chronic health conditions will see lowered costs for vital medications and a healthcare ecosystem that can develop more drugs to treat diseases that have historically been cost prohibitive.”
Rep. Chris Smith has consistently advocated for increased investments in disease research and efforts to ease financial burdens on families affected by chronic illnesses. He has supported measures allowing Americans—especially veterans—to buy prescription drugs at lower prices.
“For years, we have heard about drug shortages, increasing prices, and inability to invest in new drug developments due to cost and regulatory barriers—today, President Trump took decisive action to address the fundamental barriers holding back American drug development and delivery, while at the same time, generating new American jobs in the life sciences industry—a critical industry to the State of New Jersey.”
“As FDA Commission Makary said, ‘Today marks the beginning of the end of the great American rip-off,’ all thanks to President Trump’s success—where so many before him have fallen short,” concluded Smith.
Chris Smith has served as a member of Congress representing New Jersey’s 4th district since 1981 after succeeding Frank Thompson. Born in Rahway, New Jersey in 1953, he currently resides in Manchester Township and graduated from The College of New Jersey with a Bachelor of Science degree.
