A Missouri legislative committee advanced a bill designed to end America’s reliance on foreign adversaries for critical medicines and minerals.
Sen. Kurtis Gregory, R-Marshall, is sponsoring the bill to offer millions of dollars in yearly tax credits to Missouri companies producing those vital supplies.
Gregory said the legislation is purely about national defense and restoring critical supply chains back to American soil.
“For instance, the F-35 fighter jet requires 900 pounds of different critical materials, some of which are able to be found in Missouri,” Gregory said during a February committee hearing, listing minerals such as cobalt, nickel and gallium.
Industry leaders testified the current situation leaves the country vulnerable to foreign influence.
Douglas Jost of St. Louis-based Jost Chemical Co. highlighted the sheer dominance overseas manufacturers hold over the market.
“Our Strait of Hormuz with China and India is they make 80-90% of the medicines and also a variety of critical materials for us, so they can really bend our knee if they want to,” Jost said.
During the pandemic, India halted exports of crucial, life-saving medicine.
“During that period, if you were somebody who had a rare brain cancer, the sole treatment for that was cut off,” said Matt Thompson with API Innovation Center, which also operates out of St. Louis.
The U.S. has since identified hundreds of drugs needing domestic production to prevent similar crises. Thompson said Missouri is already well-positioned to manufacture generic medicines at competitive prices due to existing, FDA-approved manufacturing spaces.
Bringing production back to Missouri is expensive. Jost said businesses like his must pay to follow strict EPA laws, while overseas competitors keep prices artificially low by relying on slave-like work conditions and child labor. Those other companies also buy cheap Chinese materials and bypass tariffs, allowing them to undercut American manufacturers.
“Our same friends are screwing us from behind, so we need to figure out how we can play more fair,” Jost said. “But in the meantime, we need some kind of incentive to try to make these products on a more level playing field.”
If signed into law, the Missouri Defense and Energy Independence Act would expand the state’s manufacturing sales tax exemption to include equipment and materials used for producing these critical goods. It would allow the Department of Economic Development to award up to $40 million in tax credits annually starting in 2027.
The bill also establishes a $10 million fund to help Missouri-based companies build new facilities. Businesses headquartered in hostile nations would be strictly blocked from receiving the state’s money.
Business advocates see the bill as a massive win for both national sovereignty and the state economy. Jared Hankinson, vice president of governmental relations for the Missouri Chamber of Commerce and Industry, called it a fantastic opportunity to attract investment.
“This is one of, if not the best, opportunities the state of Missouri has to put ourselves on the map and be a national leader in an industry sector,” Hankinson said.
