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Lawler, Malliotakis, Pascrell, Others Introduce Bipartisan Legislation to "Near Shore" Critical U.S. Supply Chains

Today Congressman Mike Lawler (R-NY-17) joined Representatives Nicole Malliotakis (R-NY-11), Bill Pascrell (D-NJ-09), Gus Bilirakis (R-FL-12), Nydia Velázquez (D-NY-07), and James Moylan (R-GU) in introducing the Supply Chain Security and Growth Act, bipartisan legislation that would leverage Investment Tax Credits (ITCs) to facilitate a rapid movement of critical U.S. supply chains to Puerto Rico from less desirable and unreliable locations such as China.

"The global economic crisis of the past few years was a wakeup call to the vulnerabilities of our supply chains and how important it is that we act expeditiously to secure them," said Congressman Lawler. "That’s why I’m proud to join colleagues from both parties in introducing the Supply Chain Security and Growth Act. This legislation will help shake our reliance from China on critical supplies such as pharmaceuticals by incentivizing manufacturers to near shore their facilities to friendlier ports like Puerto Rico – creating jobs for Americans while bolstering the security of our economy and our country."

"Right now, the lion share of our active pharmaceutical ingredients are being manufactured in Asia, predominately China, posing a severe threat to our medical supply chains and national security," Congresswoman Malliotakis said. "Our legislation seeks to incentivize manufacturers to "near shore" their facilities to friendlier locations, such as Puerto Rico, to not only reduce our reliance on foreign nations and protect Americans from life-threatening drug shortages, but promote American jobs and economic development in our U.S. territories. Moving our critical supply chains will allow us more control over production processes and quality standards, and more opportunities to invest in and manufacture materials for the pharmaceutical, semiconductor and aerospace sectors."

Currently, 252 drugs, including antibiotics and chemotherapies, are facing shortages in the U.S. with no pattern of predictability, while 80 percent of all active pharmaceutical ingredients (APIs) for essential medicines in the U.S. have no domestic manufacturing source. In 2021, China was the leading source for U.S. pharmaceutical imports by weight and value, accounting for 95 percent of our country's ibuprofen imports, 91 percent of hydrocortisone imports, 70 percent of acetaminophen imports, and 40 to 45 percent of penicillin imports.

"The global pandemic exposed the absolute need for America to fix its broken supply chains and become less reliant on foreign nations for our critical needs," said Congressman Pascrell. "We have made enormous progress bringing jobs and industrial capacity home but lots of work remains. This legislation will fill a big piece of the puzzle and bring our nation even closer to where we need to be by incentivizing crucial investments in Puerto Rico to produce what we need right here."

"Throughout the country, Americans are continuing to suffer from shortages in critical medications because our pharmaceutical supply chain relies too heavily on foreign sources – especially those located in China- which are vulnerable to disruptions amidst growing Chinese aggression," said Congressman Bilirakis. "I’m proud to be working with my colleagues on this important legislation that will solve this problem by encouraging the development of medications that are Made in the USA."

"The COVID-19 pandemic highlighted the precariousness of our supply chains and the negative impact that shortages can have on working families," said Congresswoman Velázquez. "Resilient supply chains are imperative to protecting consumers and national security, and we must work to move key production facilities back to the United States. Moving critical supply chains to Puerto Rico will strengthen supply chains and prevent future disruptions while creating jobs for U.S. citizens and stimulating the island's struggling economy."

"I have spent much of my time in both the Guam Legislature and now in Congress working to bring back critical industries to Guam," said Delegate James Moylan. "The Supply Chain Security and Growth Act of 2024 is a practical measure which would offer tax incentives to important industries such as pharmaceuticals, semiconductors, and aerospace. I thank my colleague Congresswoman Malliotakis for her work on this and am grateful she asked me to be an original cosponsor of this bill. I look forward to seeing this spur investment in Guam and the Lower 48 to development of our own domestic pharmaceutical and semiconductor industries."

Congressman Lawler is one of the most bipartisan members of the 118th Congress and represents New York's 17th Congressional District, which is just north of New York City and contains all or parts of Rockland, Putnam, Dutchess, and Westchester Counties.