Health and Human Services Secretary Robert F. Kennedy Jr. has withdrawn a generous subsidy that the last administration provided to Moderna to help with the late-stage development of an avian flu vaccine for humans.
Federal government agencies only got involved with the bird flu vaccine in July 2024 when the Biomedical Advanced Research and Development Authority (BARDA) approved a subsidy for Moderna's late-stage development of its mRNA-1018 vaccine with a $176 million grant.
Before it expired, the Biden Administration increased the subsidy by $590 million, bringing the total to $766 million from HHS funds. Bird flu remains a low risk to humans, meaning any new vaccine for H5 influenza would go on the shelf unless and until it is needed. Several dozen human illnesses and one death from bird flu have been documented in the United States.
Before funding Moderna, the USDA under former Secretary of Agriculture Tom Vilsack downplayed the role of vaccines in avian flu defense.
This week, Kennedy cancelled the Modnerna subsidy entirely without much explanation. Moderna, known for its COVID-19 vaccine, expects its total revenues to hit between $1.5 and $2.5 billion, with an ending cash balance of $6 billion. Its Messenger RNA technology is new.
The $766 million from taxpayers was going to Moderna's late-stage development of its mRNA-1018 as a vaccine against the H5 influenza virus. Terminating the funding also means the federal government is giving up its right to purchase a vaccine before any pandemic.
Since 2022, avian flu, which wild birds primarily spread, has become widespread in poultry and dairy cows. The humans, almost all agricultural workers, who became infected did recover, except for one who died.
Moderna reported that 97.8 percent "achieved immunity" from the Phase 1/11 clinical study. It said the vaccine is "well-tolerated with adverse reactions limited to mild and moderate side effects."
Sen. Patty Murray, D-WA, was among the first to criticise the funding cut. "This contract has helped fund an early trial with promising results. Now, all that work is being seriously jeopardized -- talk about government waste and inefficiency," she said. "Donald Trump and RFK Jr. want to stop lifesaving vaccines from being discovered, and they are very intentionally pushing this country down a dangerous path: we will be less prepared for the next influenza pandemic, putting the lives and health of the American people at real risk."
Avian flu defense falls mainly under the USDA, which has stepped up "biosecurity assessments" for commercial poultry producers nationwide, prioritizing egg-laying facilities in top-producing states.
To help prevent further outbreaks, USDA now offers two free, voluntary biosecurity assessments: one focused on wildlife risk mitigation and another on general biosecurity improvements. Additionally, all farms affected by HPAI must complete a biosecurity audit before restocking flocks. USDA covers up to 75 percent of the costs of the highest-risk biosecurity improvements.
The USDA reports working with the Food and Drug Administration and industry stakeholders to evaluate solutions that can help expand supply safely, minimize burdens on farmers and consumers, and promote innovative approaches to disease management. The USDA continues to explore ways to reduce the extent of depopulation while maintaining food safety standards.
The USDA's Animal and Plant Health Inspection Service (APHIS) is investing $100 million in Avian Flu Research & Vaccine Development
HHS, the Centers for Disease Control and Prevention (CDC), the National Institutes of Health (NIH) and the Food and Drug Administration (FDA) are involved with the USDA to support research into HPAI prevention, therapeutics, and potential vaccines.