President Joe Biden on Wednesday invoked the Defense Production Act to ramp up production of baby formula to ease a nationwide shortage caused by the closure of a key Michigan plant.
Biden is requiring suppliers to ship ingredients directly to infant formula manufacturers before any other companies may have placed orders for the same goods. It was not immediately clear which major suppliers were subject to the order.
The Defense Production Act gives the president broad authority to require companies to prioritize production and allocation of goods in response to a crisis. The law was passed in 1950 during the Korean War.
Biden also directed the Departments of Health and Human Services and the Department of Agriculture to use Department of Defense aircraft to source infant formula from abroad that met U.S. health and safety standards.
Parents across the country have struggled to find formula for their babies since Abbott Nutrition closed its factory in Sturgis, Michigan due to bacterial contamination. Abbott issued a recall in February for brands of factory-made infant formula after four infants who consumed products manufactured there fell ill with bacterial infections, two of which died.
The Justice Department, in its complaint on Monday, said Abbott had introduced adulterated infant formula into the consumer market. Abbott asserts that there is no “convincing evidence” that its formula has caused infants to fall ill and die.
Abbott reached an agreement with the Food and Drug Administration on Monday to reopen the factory under federal court-mandated conditions. Those conditions include hiring independent experts to ensure that the plant meets U.S. food safety standards.
Abbott said it will take about two weeks to reopen the Michigan facility, subject to FDA approval, and up to eight weeks for the product to reach stores nationwide.
The United States produces 98% of the infant formula that American parents buy. Four manufacturers – Abbott, Mead Johnson Nutrition, Nestle USA and Perrigo – dominate the market. When a factory goes offline, the supply chain is highly disrupted.
The FDA is increasing imports of infant formula from other countries to help alleviate shortages. To sell formula in the US, companies must apply to the FDA, which reviews it to make sure the product is safe and provides adequate nutrition.
However, Democratic lawmakers this week said the FDA doesn’t have nearly enough inspectors to make sure imported formula is safe. Representative Rosa DeLauro, chair of the House Appropriations Committee, said the FDA had told her it only had nine inspectors to monitor manufacturers of infant formula.
DeLauro enacted legislation this week that will provide the FDA with $28 million in emergency funding to strengthen inspection, supply chain monitoring, and root out fraud.
