CARGO Act of 2025

The CARGO Act of 2025 (S.1802), introduced by Senator Rick Scott (R-FL) and co-sponsored by Senator Booker, aims to amend the Public Health Service Act to prohibit the National Institutes of Health (NIH) from awarding support for animal research activities unless the research occurs within the United States. The bill was introduced in the Senate on May 19, 2025, and subsequently referred to the Committee on Health, Education, Labor, and Pensions. A companion bill, H.R.1085, has been referred to the House Committee on Energy and Commerce, indicating a bicameral effort. The bill explicitly states that from fiscal year 2011 through fiscal year 2021, the NIH provided approximately $2.2 billion to foreign organizations for animal research projects. The CARGO Act seeks to redirect this funding domestically by prohibiting NIH support for animal research outside the U.S. This represents a significant shift in funding allocation, moving $2.2 billion from international to domestic U.S. facilities. This is an authorization bill, meaning it sets policy and spending ceilings; actual funding would depend on subsequent appropriations bills. Structural beneficiaries of this legislation, should it pass, would be U.S.-based contract research organizations (CROs) and research institutions that conduct animal research. Conversely, CROs with substantial international animal research operations, particularly those reliant on NIH funding for such activities, would face a headwind. Companies like Charles River Laboratories International, Inc. ($CRL) and IQVIA Holdings Inc. ($IQV) operate globally and provide animal research services, making them directly exposed to this potential policy change. The bill's findings cite a lack of NIH oversight on foreign organizations and concerns about animal welfare as justifications for the proposed change. As of 2026-04-07, $CRL is trading at $166.79, down 3.31% over the last 7 days and 4.4% over the last 30 days. Its 52-week range is $91.86 to $228.88. $IQV is trading at $169.17, down 0.8% over the last 7 days and 3.05% over the last 30 days. Its 52-week range is $134.65 to $247.05. Both companies have experienced negative price movements in the short term, though these movements cannot be directly attributed to the CARGO Act given its early legislative stage and the current date. The bill is in its early stages, having only been introduced and referred to committee. It must pass through committee, receive a vote in the Senate, then the House (or vice versa for the companion bill), and finally be signed by the President to become law.