Rep. Gus Bilirakis (R-FL) recently noted on X, “According to a recent poll, 77% of Americans support using tax incentives to maintain and encourage manufacturing in the U.S., including in Puerto Rico.”
The congressman’s inclusion of Puerto Rico is notable. Bilirakis represents one of the largest populations of Puerto Ricans living in the states, with 50,257 people of Puerto Rican heritage living in his district. His district is almost 16% Hispanic, and of that, just under 40% are Puerto Rican.
Bilirakis has supported Puerto Rico status bills many times, beginning with a 2007 status bill introduced by then-Resident Commissioner Luis Fortuño (R). He was also a cosponsor of a statehood admission bill introduced by Rep. Darren Soto (D-FL) and then-Resident Commissioner Jenniffer Gonzalez-Colon (R).
The Republican from Florida has also joined with Florida Democrat Darren Soto to support Medicaid funding in Puerto Rico, hosted the Congressional App Challenge which includes students from Puerto Rico as well as the states, and introduced the Made in America Act supporting domestic production of drugs.
Rep. Bilirakis
Congressman Bilirakis is a founding member of the Domestic Pharmaceutical Manufacturing Caucus and American-Made Medicines Caucus. He also serves on the Health Subcommittee of the Energy & Commerce Committee in the U.S. House of Representatives. His recent statement, combined with his leadership positions in Congress, indicate that Bilirakis is strongly committed to strengthening supply chains for medications and medical devices, an issue that affects Puerto Rico deeply, and he is positioning himself to make an impact.
The Domestic Pharmaceutical Manufacturing Caucus
The Domestic Pharmaceutical Manufacturing Caucus is a bipartisan group within Congress working to develop legislation which will support U.S. manufacturing of pharmaceuticals. Currently, nearly all the generic drugs used in the United States come from India and China, while half the basic ingredients for prescription drugs come from India and the European Union. The United States manufactures only about 12% of these basic materials and just 22% of the medications produced in pill form.
The United States has the capacity to produce more drugs, and Puerto Rico has a strong track record in this field. The Island not only has about 50 FDA-approved manufacturing plants, but also has a workforce with the knowledge and experience to meet the requirements for production of pharmaceuticals.
Congress sees shortening the supply chain for medications as a national security issue. The need to source essential pharmaceuticals from other countries — including those, like China, with which the United States may have an adversarial relationship — gives those nations an uncomfortable level of power over U.S. consumers. As Bilirakis put it, “Americans shouldn’t have to rely on China and other adversarial countries for the lifesaving medication they need.”
Support for tax incentives
While Bilirakis has cited the survey showing that 77% of Americans favor tax breaks to encourage shorter medical supply chains, he has not given a source. It may be a 2017 Deloitte study which found that “Nearly 7 in 10 Americans surveyed in 2017 believe developing a strong manufacturing base should be a national priority and that the government should provide tax incentives to encourage it.”
Americans in general have become increasingly aware Puerto Rico’s capacity for manufacturing and the benefits of reshoring to the U.S. territory. “Low operational costs, a strategic location and a favorable tax climate have lured manufacturers to Puerto Rico for decades,” pointed out a recent article in Women in Manufacturing. “While we are seeing increased competition from China and Ireland, given the current global marketplace for manufacturing, Puerto Rico remains an attractive option, particularly for U.S. multinational manufacturers.”
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