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Gavin Newsom To End $54 Million Walgreens Contract Over Abortion Pill Decision

Gavin Newsom To End $54 Million Walgreens Contract Over Abortion Pill Decision
California Gov. Gavin Newsom posted a tweet that his state would work on ending the $54 million contract with Walgreens over the company's decision not to dispense abortion pills to Republican-led states. Photo by Justin Sullivan/Getty Images

California Gov. Gavin Newsom announced an end to Walgreen's $54 million contract with the state following the company's decision against distributing abortion pills in 21 states.

The Democratic governor announced on Monday, only days after Walgreens announced that it would dispense abortion medication in the Republican-led states. Newsom said that the state of California would not be doing business with the company anymore so long as it cowers to the extremists that put women's lives at risk.

California's $54 Million Contract with Walgreens

The California governor's announcement is the latest pushback during an already chaotic time for the future of medication abortion. These are used in more than half of all procedures in the United States.

The situation comes as a Texas judge weighs issuing a ban on Mifepristone, the first pill in a two-drug abortion regimen. In response to legal pressure from Republican attorneys in those 21 states, a handful of which retains the legality of abortion, Walgreens decided to partially halt its efforts to sell the drug, as per CNN.

In a statement last week, the company said it plans to become a certified pharmacy and will only distribute Mifepristone in jurisdictions where it is still legal and operationally feasible. On Newsom's announcement, Walgreens declined to comment.

The tension between Newsom and Walgreens, a massive chain with thousands of stores across the United States, is the latest fallout following the Supreme Court's ruling to overturn Roe v. Wade. The decision was handed in June last year and shook national politics ahead of the 2022 November midterms.

Many Democratic lawmakers credited the backlash for helping their candidates in tough, swing state and seat races. It also further complicated relationships between political and business leaders.

Selling of Abortion-Inducing Drugs

The massive multi-million dollar contract between California and Walgreens is to buy specialty pharmacy prescription drugs for the state's prison health care system. According to Yahoo Finance, these include antiviral and antifungal drugs and medication used for congestive heart failure.

In a statement, Walgreens representative Fraser Engerman said the company was "deeply disappointed" by Newsom's decision. He noted that Walgreens is currently facing the same circumstances as all other retail pharmacies, and none said they would have handled the situation differently.

Engerman added that the company's position has always been that when certified by the FDA, they will dispense Mifepristone in any jurisdiction it is legally allowed to be, including California.

Last month, the group of attorneys general from the 21 states sent a letter to CVS and Walgreens that noted that if they sold the drug, they would violate the Comstock Act. It is an 1873 law that criminalizes sending contraceptives, substances that induce abortion, pornographic content, sex toys, and any written material about these items.

Newsom's tweet comes as he has expressed his support for abortion rights following the Supreme Court's ruling. He has also committed to protecting both women and healthcare providers against potential criminalization, said ABC News.

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Walgreens, Contract
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