Energy and Commerce Committee Seeks Extra $500 Million for FDA

The House Energy and Commerce Committee has approved a one-time $500 million in additional FDA funding for coronavirus-related support as part of the COVID-19 relief package currently making its way through the Congress.

The proposed funding would help the agency increase postmarket surveillance of COVID-19 vaccines and therapeutics, as well as heighten the agency’s monitoring of drug shortages, among other activities. But it would be a one-off appropriation not reflected in the agency’s fiscal year budget.

The FDA’s responsibilities during the pandemic cannot be “neatly segmented by fiscal year, so the flexibility provided by these funds is enormously valuable,” according to the Alliance for a Stronger FDA, which advocates for increased funding for the agency.

In addition, the committee has approved a provision to eliminate Medicaid drug rebate caps beginning in 2023. The amendment is meant to help states recoup costs from their Medicaid programs when drugmakers raise the prices of costly drugs like insulin ― by enabling states to demand larger discounts when negotiating drug prices. Opponents of the proposal argue that, theoretically, states could seek a 100 percent discount, and therefore pay nothing for some drugs.

Both the Medicaid funding and the FDA funding provisions will be in proposed text of the $1.9 trillion COVID relief package that the House Budget Committee is expected to consider as soon as next week along with amendments from other House committees. The committee will then deliver a final text of the bill for a full floor vote. ― Jason Scott