Level-Funding in FY 24: A Substantial Risk to FDA Priorities

As discussed in last week’s Analysis and Commentary (Concrete Progress; Still A Long Way from Settling FDA’s FY 24 Funding), FDA’s FY 24 funding has a best case and worst case that are $900 million apart. The broad range of possible outcomes creates a situation where budget, personnel, and program planning are near-impossible, especially when we are already a month into the fiscal year.  

Some clarity emerged this week with the Senate passage of HR 4366, which will fund Agriculture/FDA, along with Transportation/HUD and Military Construction/VA.

In the Senate bill, FDA would receive an additional $20 million above the FY 23 level of $3.5 billion. We won’t know where the House will come out until at least the week of November 13, when the Ag/FDA appropriations bill is due to be considered. Based on recent efforts on that bill, it is possible that it might contain a large, across-the-board cut that might be as great as 14%.

The likely final outcome is funding at–or close to–the FY 23 level. That will hurt the agency by requiring that existing program dollars be stretched to cover: 

  • FDA’s expanding mission and growing responsibilities. 

  • Increased complexity of science, growth in regulated industries, and the need for major initiatives in food safety, gene and cell therapy, etc. 

  • Improved IT and infrastructures that are critical to modernizing the agency. 

FDA does not have the spare capacity or budget to do all these things. 

Further, the President’s Request included $105 million for mandated pay raises in FY24. At level-funding, FDA will have to absorb that amount, which effectively reduces funds available to sustain existing programs at current funding levels.

The President’s Request for FY 24 envisioned adding $372 million to the FDA budget, to meet the following growing needs at the agency:  

  • Food Safety and Nutrition

    • $128.2 million in investments in food safety and nutrition modernization, including food labeling and animal food safety oversight.

    • $5 million toward modernizing oversight of cosmetics (implementing new law) 

  • Medical Products

    • $23 million in additional funds to advance the goal of ending the opioid crisis.

    • $11.6 million increase toward improving the medical device supply chain/addressing shortages.

    • $2.5 million to foster the development of treatments for ALS and other rare neurodegenerative diseases (implementing new law).

    • $50 million to advance the President’s Cancer Moonshot goals

  • Cross-Cutting Initiatives

    • $10 million in further investments in enterprise data and IT modernization.

    • $16 million for regulatory and mission support functions within the Office of the Commissioner.

    • $9.4 million for FDA buildings, facilities, and infrastructure improvements.

    • $105.3 million for cost-of-living salary increases for FY 24.

There are many additional priorities and initiatives that will require resources that are not attached to an explicit request for additional funding: 

  • Combating misinformation

  • Reimagining clinical trials (address diversity, expedited approvals, real-world evidence, etc.

  • Reviving the promise of cell and gene therapy

  • Pandemic preparedness

  • Re-organization of CFSAN/ORA/FDA inspections

Level funding–or slightly more–may be all that FDA receives for FY 24. No one should be under any illusion: it will not be enough to cover all the demands placed on the agency this year.


Editorial Note:
The Analysis and Commentary section is written by Steven Grossman, Executive Director of the Alliance for a Stronger FDA.

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