President Donald Trump declared that his administration has successfully reduced prescription drug costs in the United States, presenting the achievement as the result of a revived Most Favored Nation pricing framework and the rollout of a new distribution initiative known as TrumpRx. Speaking during his February 25, 2026, State of the Union address, the president contrasted his approach with prior administrations, arguing that earlier efforts to control pharmaceutical prices failed to produce meaningful change.

The Most Favored Nation model ties the prices paid by federal health programs to the lowest rates charged for the same medications in comparable developed countries. Administration officials contend that this mechanism prevents manufacturers from charging significantly higher prices in the U.S. market and introduces international price benchmarking into domestic reimbursement formulas. Supporters argue that the policy increases negotiating leverage, reduces out-of-pocket costs for seniors and patients with chronic conditions, and curbs long-standing pricing disparities between the United States and other advanced economies.

TrumpRx has been described by the White House as a parallel effort to streamline procurement and distribution, allowing consumers to access medications at reduced prices through a centralized platform. The initiative is intended to increase price transparency, expand access to lower-cost generics and biosimilars, and bypass intermediary markups that have historically contributed to higher retail prices. Officials maintain that the combination of international reference pricing and direct purchasing mechanisms creates structural downward pressure across the pharmaceutical supply chain.

Critics of the policy have raised concerns about potential market distortions, including the risk that manufacturers may limit product availability in lower-priced countries or adjust global pricing strategies in response to U.S. benchmarking. Industry representatives have also warned that aggressive price controls could affect research and development investment. The administration counters that aligning prices with international norms still preserves profitability while delivering substantial savings to patients and taxpayers.