Prescription drug prices posted their sharpest annual decline in more than 60 years in 2026, according to federal data, as the Trump administration extended its Most Favored Nation pricing policy to every state Medicaid program in the country.
The Bureau of Labor Statistics reported the steepest drop in prescription drug prices since 1963, with prices falling every month of 2026. The administration cast the decline as evidence that its drug pricing strategy is delivering results after decades in which past presidents pledged to lower prescription costs without achieving broad reductions.
Under the Most Favored Nation pricing framework, 26 of the world’s largest pharmaceutical manufacturers, representing roughly 90% of the branded U.S. drug market, have agreed to align U.S. prices with the lowest prices paid by comparable developed nations. The agreements are projected to save Americans more than $600 billion.
All 50 states, the District of Columbia and Puerto Rico have now adopted Most Favored Nation pricing for their Medicaid programs, a move the administration said will unlock nearly $65 billion in Medicaid drug savings over the next decade for low-income families, children, seniors and people with disabilities.
The administration also highlighted early results from TrumpRx, a platform it said has delivered more than $700 million in savings and now covers more than 1,000 branded and generic medications. According to the administration, GLP-1 drugs that previously cost more than $1,000 a month are now available for as low as $149, while eligible Medicare beneficiaries pay just $50 a month for the same drugs; more than 500,000 seniors have saved a combined $216 million through that program so far. Officials said prices for fertility drugs, inhalers, insulin, cholesterol treatments and other high-cost medications have fallen by 50% to 90% or more under the new pricing structure.
The same 26 pharmaceutical companies participating in the Most Favored Nation agreements have committed approximately $170 billion toward U.S. manufacturing and research and development, according to the administration, and are contributing to a Strategic Active Pharmaceutical Ingredients Reserve intended to reduce U.S. reliance on foreign drug supply chains.