Trump Moves to Revive Drug Price Reduction Plan With Executive Order

President Donald Trump is preparing to revive a proposal aimed at significantly reducing drug prices by linking what the U.S. government pays for certain medications to the lower prices charged in other countries, according to multiple sources familiar with the plans.

The proposal, which is expected to take shape in the coming days, would involve an executive order aimed at applying the “most favored nation” policy to a select group of drugs covered under Medicare. This policy would base U.S. drug prices on the lower rates paid by other countries, potentially driving down costs for consumers. While the details of the plan are still being finalized, the Trump administration is exploring ways to use existing executive powers to implement this initiative, sources noted.

Although the proposal is still in development, Trump is expected to sign the executive order next week. This move would represent a renewed push to lower drug prices, a policy issue that has been a key point of focus for the President and his administration. However, the plan remains subject to revision as White House aides continue to work on its details.

In a recent appearance, President Trump teased a “very big announcement” that is expected within the next week, with Canadian Prime Minister Mark Carney present at the Oval Office. While Trump did not confirm the specific nature of the announcement, sources familiar with the matter suggested it could be related to the drug pricing initiative. One source said the announcement was likely to focus on healthcare, while two others could not independently verify this connection.

“This will be a very, very big announcement to make — like as big as it gets,” Trump said. “It will be one of the most important announcements that have been made in many years about a certain subject.”

Should the President move forward with the executive order, it is expected to trigger a strong reaction from the pharmaceutical industry, which has historically opposed such measures. The industry argues that tying U.S. drug prices to lower prices in other countries could undermine the financial stability of drug manufacturers and limit their ability to invest in new medications and treatments.

This is not the first time the Trump administration has proposed this approach. In 2018, a similar plan was introduced but faced fierce opposition from drug manufacturers and was eventually stalled. In the final months of his first term, Trump attempted to move forward with the plan again, but it was blocked by a federal judge who ruled that the administration had not followed proper procedural steps. After the election, the Biden administration rescinded the policy, further delaying its potential implementation.

White House Press Secretary Karoline Leavitt provided little detail on the renewed proposal, only stating that the President would make a “big and historic announcement” on Monday. Leavitt encouraged people to speculate until then, stating, “Everyone can keep guessing!”

According to multiple sources close to the discussions, President Trump has become increasingly focused on finding ways to reduce drug prices in recent weeks. He has pressed his aides to explore policies that could significantly lower the cost of medications, underscoring his commitment to addressing the issue. Earlier, White House officials had suggested that congressional Republicans include a “most favored nation” provision in a broader legislative package that would tie Medicaid drug prices to the lower rates paid by other developed nations. However, the proposal encountered resistance within the GOP, and it is now seen as unlikely to be included in the final bill.

With legislative avenues uncertain, the Trump administration is expected to pursue the drug price reduction initiative independently, using the powers available to the President. If finalized, this executive order would likely face significant opposition from the pharmaceutical industry, which has expressed concern that such a policy could severely impact their ability to develop new drugs. Legal challenges are also expected as the industry works to push back against the policy.

Despite these challenges, the proposal is expected to resemble the original plan that was introduced in 2018, although it may lack specific details on which medications would be targeted. Sources suggest that the White House is aiming to apply the policy to a specific set of drugs, but these details are still being ironed out.

In addition to focusing on healthcare, President Trump has also made headlines with judicial nominations. On Truth Social, he announced several nominees for federal court positions, continuing his push to reshape the judiciary. Trump nominated Maria Lanahan, Principal Deputy Solicitor General of Missouri, for a judgeship on the U.S. District Court for the Eastern District of Missouri. He also highlighted Judge Cristian Stevens of the Missouri Court of Appeals as a “great patriot” in a separate post.

These moves reflect the President’s ongoing efforts to influence the federal judiciary, alongside his focus on policy issues like healthcare. As the Trump administration looks to finalize its plans on drug pricing, both supporters and opponents are preparing for the debates and legal challenges that are likely to follow.