Trump says all 50 states joining programme to lower drug costs

President Donald Trump's administration said Friday that every US state is joining a program to lower the prices of certain drugs to what they are sold for in other countries.

The White House announcement said 26 drugmakers have agreed to bring down the prices they charge Medicaid in line with the lowest paid by comparable developed nations. Medicaid is a state- and federally-funded program for low income residents.

"This will save states billions and billions of dollars per year on drugs and allow them to invest those savings in providing better health care and higher quality service for the American people," Trump said in the Oval Office, adding: "This one thing alone should win us the midterms."

The rising cost of living is a major issue ahead of November's elections that will decide which party controls Congress.

Trump's Republican party declined to extend generous subsidies that had been a key part of the "Obamacare" health program at the end of last year, sending monthly insurance costs spiking for millions of people.

The drug prices program, called GENEROUS (GENErating cost Reductions fOr US Medicaid), was launched in January 2026. It has now expanded after all 50 states -- as well as the capital Washington and Puerto Rico -- applied to join, officials said.

Recipients of Medicaid already often pay nominal amounts for their medications, though the program could help cut costs for state governments.

According to the White House, the voluntary framework would generate nearly $65 billion in federal and state savings over the next decade.

But the program has drawn skepticism over its lack of transparency, with key details, including the terms of the deals struck with drugmakers and which drugs will be discounted, not made public.