President Trump announced that every single state has joined his new drug pricing plan for Medicaid recipients. This move covers the District of Columbia and Puerto Rico as well. The initiative forces prices to match the lowest rates paid by eight other wealthy nations. The White House estimates this will save the government $529 billion over the next ten years.
Trump stated that many critics thought blue states would refuse to participate. He claimed they could not resist the offer of drugs for 70 to 90 percent less. The deals cover 26 of the world’s largest pharmaceutical companies. These firms represent 90 percent of the branded drug market in the United States.
BREAKING: President Trump announces a new program providing Most Favored Nation drug discounts directly to state Medicaid programs covering nearly 70 million Americans.
Trump says the program is launching nationwide with participation from “all 50 states, red and blue.”
Get the… pic.twitter.com/5xTQfdyotb
— Fox News (@FoxNews) September 18, 2026
According to the New York Post, the Council of Economic Advisers projects states will save Medicaid $64 billion soon. Trump said these savings will allow states to fund better healthcare services. He noted that high drug prices were crowding out schools and roads. Dr. Mehmet Oz, who administers Medicare and Medicaid, called the program a rescue for state budgets.
Breitbart reported that the agreements ensure the final price does not exceed the international rate. The president said he thinks total savings could reach $100 billion. Health and Human Services Secretary Robert F. Kennedy Jr. stated the nation’s poorest will benefit the most. The program also offers discounts for uninsured Americans on the new TrumpRx platform.
🚨 JUST NOW: President Trump announced ANOTHER major move to slash prescription drug prices, saving state taxpayers at LEAST $64 BILLION
The Most Favored Nation program is now LIVE in ALL 50 states, covering nearly 70 million Medicaid recipients. Even DEMOCRAT STATES couldn’t… pic.twitter.com/h5cQMhXifj
— Nick Sortor (@nicksortor) September 18, 2026
Not everyone is convinced the numbers are final without seeing the contracts. ABC News reported that experts say the savings are unclear because deal content remains private. Kathy Hempstead of the Robert Wood Johnson Foundation told The Associated Press there is pressure for more data. She argued the administration must provide granular details to justify its cost claims.
HISTORIC ACTION to lower drug prices for all 50 state Medicaid programs by advancing Most-Favored-Nation pricing, with estimated savings of $64.3 billion. 🇺🇸
Delivering on the promise to PUT AMERICAN PATIENTS FIRST! pic.twitter.com/IYWdesRgNs
— The White House (@WhiteHouse) September 18, 2026
Trump has reached these deals since late September 2025. The list includes major firms like Eli Lilly, Johnson & Johnson, and Merck. According to RedState, the program is rolling out across the entire nation, involving all 50 states, both red and blue. The president called the move historic action to extend benefits across the nation.
The rebates will ensure the final price to Medicaid stays low on expensive brand-name drugs. Trump said this one thing alone should win the next midterm election. He emphasized that every nation is judged by how it cares for the poorest members. The plan aims to lower costs for 70 million Americans in Medicaid programs.
.@POTUS: “Thank you all for being here today as we take historic action to officially extend the benefits of our Most Favored Nation agreements on prescription drug prices to state Medicaid programs all across the nation.” pic.twitter.com/rWxdU6rs6i
— Rapid Response 47 (@RapidResponse47) September 18, 2026
Dr. Oz said the program rescues state budgets by cutting unnecessary spending. The president claimed his party promised this for decades. The White House estimates the broader initiative will save billions per year. This allows states to invest those savings in higher quality service for the American people.
