The average cost of formula in the powdered form — the least expensive — is now more than $ 1200 dollars a year. (motherandchildhealth.com)
This was presented as being for the public good because more competition would mean lower costs of formula (but not as low as breastmilk). (amotherinisrael.com)
Basically, the formula companies offer state governments rebates (sometimes as high as 98 %) of the wholesale cost of the formula in exchange for an exclusive contract. (NancyMohrbacher.com)