Trump Rescinds Biden’s Drug Cost Reduction Order, Sparks Outcry

WASHINGTON, D.C. — President Donald Trump has rescinded Executive Order 14087, a key Biden-Harris administration policy aimed at lowering prescription drug costs for Americans. The move, announced on Inauguration Day, has drawn sharp criticism from Democrats and healthcare advocates.

Executive Order 14087, signed by President Biden in October 2022, directed the Department of Health and Human Services to develop and test new cost-reduction models through the Center for Medicare and Medicaid Innovation. The order sought to address the high cost of prescription drugs, which Biden described as a significant burden for millions of Americans. “Too many Americans face challenges paying for prescription drugs,” Biden said at the time. “On average, Americans pay two to three times as much as people in other countries.”

Trump’s decision to revoke the order halts the development of these cost-reduction models, potentially leaving Medicare and Medicaid beneficiaries vulnerable to higher out-of-pocket expenses. The move also creates uncertainty about the federal government’s future approach to drug pricing policies.

In a statement, Democratic National Committee Rapid Response Director Alex Floyd criticized Trump’s action, saying, “Donald Trump is already following through on his dangerous plans to jack up the costs of drugs to appease his billionaire backers after the Biden-Harris administration took on Big Pharma and won.” Floyd added, “Trump is again proving that he lied to the American people and doesn’t care about lowering costs—only what’s best for himself and his ultra-rich friends.”

Trump’s decision aligns with his previous budget proposals, which included cuts to Medicare and Medicaid. During his first term, Trump repeatedly proposed hundreds of billions in cuts to these programs, a stance that has drawn criticism from healthcare advocates and Democrats.

While the executive order has been rescinded, existing laws and regulations governing prescription drug pricing remain in effect. However, the Biden administration’s efforts to implement new cost-saving measures have been disrupted, leaving many Americans uncertain about the future of drug affordability.

Newsweek has reached out to the Trump transition team for comment but has not yet received a response.