RAPID Reserve Act

HR 6802, the RAPID Reserve Act, requires the Secretary of Health and Human Services to establish a reserve of critical drugs and their key ingredients to prevent shortages. It directs the Secretary to award contracts to eligible manufacturers or distributors (with strong quality records and domestic/OECD manufacturing capacity) to maintain a 6-month reserve of both the finished drug and its active ingredient, regularly replenished with new supply. During public health emergencies or shortages, the Secretary can direct the transfer of reserves between manufacturers or allocate reserves to address critical needs. The program, funded with $500 million for fiscal year 2024, targets drugs with vulnerable supply chains - such as those with geographic manufacturing concentration or few producers - to strengthen domestic drug security.