The White House expanded most‑favored‑nation (MFN) pricing agreements and CMS proposed two mandatory Medicare payment demonstration models designed to lower drug prices for Medicare beneficiaries. The administration announced MFN deals with multiple drugmakers while CMS outlined payment structures aimed at aligning U.S. prices with peer countries, a move likely to draw industry pushback and legal scrutiny. Officials argue the measures will reduce government drug spending and beneficiary out‑of‑pocket costs; manufacturers warn of market distortions and potential impacts on access. The proposals set up a contentious 2026 policy environment with implications for pricing strategy, formulary negotiations and cross‑border trade of active pharmaceutical ingredients.