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On May 25, the House Energy & Commerce Oversight and Investigations Subcommittee held an investigative hearing on "Formula Safety and Supply: Protecting the Health of America's Babies." During the hearing, committee members raised concerns about the events that led to the current infant formula shortage, including the Biden Administration's and the Food and Drug Administration's (FDA) response, limited competition in the market, and actions taken by infant formula manufacturers. Specifically, lawmakers raised concerns about delays in the response and problematic culture at Abbott's Sturgis, MI, facility which prevented employees from raising potential safety concerns.

Lawmakers heard testimony from two panels of witnesses: the first comprised of FDA leaders and the second comprised of leaders from the nation's three leading infant formula manufacturers. During the first panel, FDA Commissioner Robert Califf and other senior FDA leaders fielded questions on the agency's response timeline and Dr. Califf committed to conducting an investigation into the current problem, as well as a broader review of the FDA's food safety processes to improve oversight. During the second panel, representatives from Abbott, Gerber, and Reckitt discussed efforts to increase supply of infant formula in the United States, with all three expressing optimism that supply will be re-established in the coming weeks and months.

More information is available here.

Additional information is also available in the attached Tax Alert.

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Subcommittee hearing on formula safety and supply