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US To Extend Baby Formula Waivers For Low-Income Families: Report

The Joe Biden administration will likely extend federal flexibilities for low-income families which are dependent on government discounts to access baby formula in coming days, Politico reported on Tuesday.

Earlier this year, the US department of agriculture started temporarily covering the cost of baby formula for low-income families in some states which access formula through the Special Supplemental Nutrition Programme for Women, Infants, and Children (WIC) programme.

The move was made after closure of Abbott Laboratories Michigan plant due to complaints of bacterial contamination exacerbated a national shortage of the vital product.

Infant Formula Shortage

The current waivers are set to expire on 30 September and an extension will help the government avoid a steep drop in infant formula access as shortages linger in pockets across the country, the Politico report said, citing two people familiar with the matter.

Infants enrolled in the WIC program consumed about 56% of all infant formula in the United States in 2018.

WIC shoppers can typically only buy formula produced by the company that has a contract with their state, territory, or tribe. Those companies provide rebates to cut the cost of formula to WIC shoppers.

Abbott Laboratories, the biggest participant in the WIC programme, said on Tuesday it is extending rebates on competitive products to help low-income families through 31 October.

The USDA and the Department of Health and Human Services did not immediately respond to Reuters' requests for comment.

Read More: Reckitt Ups Sales Forecast On Price Hikes And Baby Formula

News by Reuters, edited by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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