Escaping the Downward Budget Pressures in FY 25
The appropriations committees have, and will continue to have, a difficult time staying within the spending ceilings imposed by the Fiscal Responsibility Act (FRA 2023). In particular, non-defense discretionary programs are a primary target for restraints on spending. The only exception is Veterans programs.
One immediate consequence is that non-defense federal discretionary programs lost ground in FY 24. On paper, FDA was roughly level-funded, receiving a few dollars ($8 million) less than they received in FY 23, the prior fiscal year. This was a typical result for non-defense discretionary programs, perhaps a bit better than many.
However, for FDA, as for most agencies, level-funding had the effect of a loss. Specifically, FDA received no new funding to cover mandatory pay increases ($105 million) and was directed to make $50 million available to be repurposed for program expansion and new initiatives.
In FY 25, which starts October 1, 2024, FDA’s will come face-to-face with budget restraints even greater than FY 24. The agency’s expanding mission and growing responsibilities cannot easily overcome two down funding years. Yet, that is a distinct possibility.
FY25 is likely to be worse for FDA if the agency stakeholder community doesn’t come together to advocate for increased resources.
Given severe downward budget pressures, the pivotal question becomes:
What can FDA (or the Alliance) say or do that would result in the appropriations committees giving special consideration to FDA’s growing funding needs?
Speaking on behalf of the stakeholder community, the Alliance is answering that question.
We recently announced our FY 25 FDA funding “ask” (here), which provides Congress with insight into FDA’s needs.
We call for a budget authority (BA; non-user fee) appropriation of $3.896 billion for salaries and expenses (S&E). This is $214 million more than the President’s FY 25 budget request and $377 million more than the FY 24 funding level. While these numbers may seem particularly large, it is in part because the agency needs $115 million in FY 24 just to pay for mandatory pay raises.
Accordingly, the Alliance’s request for FY 25 is heavily focused on the program areas that most need attention in FY 25 (which starts October 1, 2024).
Apart from reading the Alliance FY 25 “ask” for FDA funding (highly recommended), what else can organizations, companies, and associations do to help FDA?
Join the Alliance. The more Alliance members, the bigger our voice and the more effective we can be.
Make a stronger FDA a top priority for your organization.
Participate in Alliance Hill Days in May (for Alliance members, so join).
Develop your own organizational case study on how public health and commerce are aided by a strong, well-resourced FDA.
Tell public officials, particularly Members of Congress, that funding FDA should be a national priority, even in the face of budget pressures.
This can all be summed up as follows: if we, the stakeholder community, don’t treat a strong, well-funded FDA as a priority, why should we expect Congress to do so?
Editorial Note:
The Analysis and Commentary section is written by Steven Grossman, Executive Director of the Alliance for a Stronger FDA.