Trump Reveals Nationwide Medicaid Drug Pricing Initiative for All States

WHO:

ABC News - President Donald Trump announced the initiative.

ABC News - Kathy Hempstead, a senior policy advisor at the Robert Wood Johnson Foundation, commented on the initiative.

ABC News - JD Hayworth, a former Republican congressman and spokesperson for the Pharmaceutical Reform Alliance, provided a statement regarding the announcement.

WHAT:

ABC News - Trump announced that all 50 states will join a program providing most favored nation pricing for some Medicaid drugs.

ABC News - The initiative is expected to bring down the net price of selected drugs to levels paid in certain other countries.

ABC News - The Trump administration claims that Medicaid will save billions on prescription drug costs due to this plan, referred to as the Medicaid “GENEROUS” model.

ABC News - The White House estimated that Trump's deals with pharmaceutical companies could save $529 billion over the next 10 years.

WHERE:

ABC News - The announcement pertains to all 50 states in the United States.

WHEN:

ABC News - Trump is set to announce the initiative on Friday.

WHY:

ABC News - The announcement comes as cost-of-living issues are a major concern for voters ahead of the midterm elections in November.

ABC News - The initiative aims to address affordability concerns by ensuring that drug prices in the U.S. are not significantly higher than in other affluent nations.

HOW:

ABC News - Trump signed an executive order instituting a “Most Favored Nations” policy, committing the U.S. to pay the same price for medications as the nation that pays the lowest price globally.

ABC News - The initiative involves cutting deals with pharmaceutical companies to lower U.S. prescription drug prices to levels charged in other countries.

(UPDATED September 19, 2026 01:20 UTC)

President Trump announced a new initiative aimed at providing most favored nation pricing for certain Medicaid drugs across all 50 states, which is expected to significantly reduce the net price of selected medications. The Trump administration claims this plan, dubbed the Medicaid “GENEROUS” model, could save Medicaid billions on prescription drug costs, with the White House estimating potential savings of $529 billion over the next decade. Kathy Hempstead from the Robert Wood Johnson Foundation and JD Hayworth, a spokesperson for the Pharmaceutical Reform Alliance, both commented on the initiative, which comes as voters express growing concerns about affordability ahead of the upcoming midterm elections in November.