(Reuters) – The Joe Biden administration may expand federal flexibility in the coming days for low-income families that rely on government discounts to get infant formula, Politico reported on Tuesday.
Earlier this year, the USDA began temporarily paying for infant formula for low-income families in some states that receive formula through the Women, Infants, and Children’s Special Complementary Nutrition Program (WIC) program .
This move is at Abbott Laboratories (NYSE:
ABT) made after closure of Michigan plant due to bacterial contamination complaints exacerbated a national shortage of this vital product.
The current exemption will expire in September. 31 And the extension will help the government avoid a sharp drop in the supply of infant formula as There is still a shortage of pockets across the country, the Politico report quoted two people familiar with the matter as saying.
Babies enrolled in the WIC program consumed approximately 56% of all infant formula in the U.S. in .
WIC shoppers can generally only buy formula made by companies that have contracts with their state, territory or tribe. These companies offer rebates to reduce formula costs for WIC shoppers.
Abbott Laboratories, the largest player in the WIC program, said Tuesday that it is expanding rebates on competing products to help low-income families through October .
The USDA and HHS did not immediately respond to Reuters’ requests for comment.