Q&A About FDA Funding in FY 24 and FY 25
Q: What happened to FY 24 FDA funding?
A: In the end, it happened very quickly with little public discussion–except here in Friday Update. The FY 24 Ag/FDA appropriation measure became law on Saturday, March 9 and the President Released his FY 25 Budget proposal on Monday, March 11,
The final agreement for FY 24 provides $3.52 billion for the FDA Salaries and Expenses (S&E) account, a decrease of $8 million below FY 2023. It also provides $5 million for the Buildings and Facilities (B&F) account, a reduction of $8 million below the FY 2023 appropriation.
The final agreement does not include the $105 million requested by FDA to cover mandated salary increases. FDA will have to find a way to absorb that cost. The bill does not provide the $20 million increase proposed in the Senate-passed bill, nor does it provide the $26 million reduction that was proposed in the House Committee-reported bill.
Our more extensive analysis is here and here.
Q: What concerns does the Alliance have about the FY 24 FDA funding?
A: In a release to the media, the Alliance for a Stronger FDA said:
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In the balance of this fiscal year, FDA will face the challenges of absorbing mandatory pay increases and meeting various Congressional priorities and public expectations. As we turn to the FY 25 appropriations cycle, we will continue to advocate for the increased funding FDA needs to fulfill its broad mission, which is essential to the nation’s public health and safety, as well as national and global commerce.
About 20% of all consumer spending in the US is for goods and services regulated by the FDA. Requiring FDA to do a lot more for the same funding is not a recipe for success.”
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Q: Is FDA’s FY 24 funding set—or is it still at risk from a sequester?
A: According to a letter to the House Budget Committee from Congressional Budget Office Director Phillip L. Swagel, it appears that FDA funding is set. His letter says “Unless all full-year appropriations have been enacted by April 30, 2024, OMB will use the section 102 caps to determine whether sequestration is required.” The House and Senate are required to act on the six remaining appropriation bills by March 22. He goes on to say that non-defense funding for the Departments and Agencies funded by last week’s Consolidated Appropriations Act is $3 billion below the section 102 nondefense cap ($736 billion), so no sequestration of nondefense budgetary resources would be required.
Q: In the FDA Fiscal Year 2025 Justification of Estimates for Appropriations Committees, some tables use “FY 23 Final” as the base year and other tables use “FY24 Annualized CR” as the base year. How are they different?
A: FY 23 Final is the last year that agency appropriations are fixed into law. FY 24 Annualized CR most nearly reflects agency spending levels upon which the agency is currently relying.
The FY 24 CRs were based on the continuation of FY 23 spending levels, so the terms and numbers they reflect should be identical. There should be no difference. However, there is some modest variance as can be seen in the All-Purpose Table that starts on page 15 of the Congressional Justification (link is in the question).
Q: A few news stories talked about the President’s budget being “dead on arrival.” Is that true?
A: No, it is not DOA. The President’s request is a blueprint for defining funding needs, especially at the program and line item levels. Further, when the subcommittees mark up their bills, the President’s numbers are a column in every table and a point of reference as to where the committee’s priorities align or diverge from the Administration’s request.
Editorial Note:
The Analysis and Commentary section is written by Steven Grossman, Executive Director of the Alliance for a Stronger FDA.