The PASTEUR Act establishes a new federal program to stimulate development of antibiotics and antifungal drugs to combat antimicrobial resistance. Under the program, the Department of Health and Human Services can enter contracts with pharmaceutical companies to guarantee annual payments for newly approved drugs that treat dangerous antibiotic-resistant pathogens identified by the CDC. Companies that sign these contracts receive annual payments ranging from $75 million to $300 million per drug, adjusted downward based on actual sales revenue, and must commit to keeping drugs available, tracking resistance data, and promoting appropriate use. The bill also funds grants to hospitals and outpatient clinics to strengthen antibiotic stewardship programs and establishes a surveillance system to monitor antimicrobial resistance trends nationwide. The legislation allocates $6 billion for fiscal year 2026 to support these initiatives, with up to 6.5 percent available for surveillance and stewardship efforts, and contracts generally last up to 10 years or until generic or biosimilar alternatives enter the market.