H.R. 10161: Mitigating Abuse of Nitrous-oxide Nationwide And Reducing Inhalation-related Neurological Outcomes Act

This bill would tie a portion of federal mental health funding to whether states ban the sale of certain nitrous oxide products.

What the bill does

• It adds a new requirement under the Public Health Service Act for states receiving certain federal block grants for community mental health services.
• To keep receiving the full grant amount, a state would have to prohibit the sale of:
  • any nitrous oxide product that is scented or flavored; and
  • any other nitrous oxide product, unless it falls under an allowed exemption.

Allowed exemptions

States could allow sales of non-scented, non-flavored nitrous oxide products when they are used for:

• medical, veterinary, or dental care;
• as a propellant for food products in a commercial kitchen;
• manufacturing or industrial uses; or
• automotive purposes.

Enforcement through grant cuts

Before awarding the grant, the federal government would check whether a state is complying. If a state is not in compliance, the federal government could reduce that state’s grant by up to 10% for that fiscal year.

When it would take effect

The new rule would apply starting with the third fiscal year after the bill becomes law.

Relevant Companies

• LIN — Linde plc could be affected if state-level restrictions change how nitrous oxide is sold for industrial, medical, or food-service uses.
• AIR — AAR Corp. could be indirectly affected if any aerospace or industrial supply chains involving nitrous oxide are subject to additional state sales limits.
• TT — Trane Technologies is not a direct nitrous oxide seller, but companies with industrial gas-related operations may see downstream compliance effects if distribution rules change.