No Shutdown But Funding Lower Than House Bill In US FDA Budget Forecast

Former Senate Appropriations Committee staffer expects FDA's FY 2020 budget will not be finalized until early next year and that it will be close to the sum in the appropriations bill passed by the Senate.

With stop-gap government funding set to expire in two weeks, speculation is increasing over whether Congress will reach consensus on fiscal year 2020 appropriations for the US Food and Drug Administration.

Former Senate Appropriations Committee staffer Jessica Schulken said she expects Congress will pass another continuing resolution and agreement on a final budget is likely early next year. She anticipates the amount FDA will receive will be closer to that provided in the Senate Appropriations bill than by the House .

"The House's number is so high it’s not going to stand," Schulken, who joined the Russel Group legislative consulting firm in September 2018, said during a 6 November Alliance for a Stronger FDA webinar. More likely is see an appropriations figure closer to the Senate's, "maybe a little bit below maybe a little bit above," she added.

The House's appropriation would provide $3.254bn to FDA, a $185m increase from FY 2019. The sum is far higher than the $3.148bn allocated in the Senate's spending plan, which is an $80m increase over the previous year.

"The House's number is so high it’s not going to stand," and more likely is an FDA FY 2020 appropriation closer to the Senate's, "maybe a little bit below maybe a little bit above" – former Senate Appropriations Committee staffer Jessica Schulken

Steven Grossman, the alliance's deputy executive director, noted that the House numbers weren't based on a White House-Congress budget agreement, as were the Senate's figures. The two-year budget agreement reached between the House and Senate leadership and the Trump administration increases discretionary funding limits and suspends the debt limit for 2020 and 2021. Trump signed the deal into law in August.

The House passed its FY 2020 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies appropriations bill, H.R. 3055, on 25 June by a 227 to 194 vote. The Senate Appropriations Committee approved its version of the bill, S. 2522, by a vote of 31-0 on 19 September.

On 26 September, Congress passed a continuing resolution that keeps federal agencies open at their 2019 spending levels until 21 November. FDA's FY 2019 budget is $3.06bn.

Government Shutdown Unlikely

Grossman said a government shutdown is unlikely. "The politics of a shutdown and the politics of a full year continuing resolution just aren't there right now," he stated.

Schulken agreed. "It would be a losing situation for Congress and the White House, particularly in light of all the other political things going on, for the government to shut down at the same time," she said.

Schulken noted there could be a partial government shutdown with only some agencies closed. In that situation, she said FDA may be in a better position to remain open since the agriculture appropriations bill cleared the House and Senate as part of the continuing resolution.

Government agencies were closed from 22 December 2018 until 25 January 2019 after Congress failed to reach an agreement on the FY 2019 budget or a continuing resolution. The shutdown ended after Trump and congressional leaders reached a deal to reopen the government. (Also see "Nearly 9% FY 2019 Increase For FDA In Shutdown-Averting Appropriations Bill" - HBW Insight, 15 Feb, 2019.) 

Grossman and Schulken were also questioned about the potential impact of new FDA leadership on the budget. President Trump on 1 November nominated Stephen Hahn for commissioner. (Also see "US FDA Commissioner Nominee Hahn On Fast Track With 20 November Hearing " - HBW Insight, 8 Nov, 2019.) 

They said it would not have much of an impact on the FY 2020 budget since it has been set. Grossman said the FY 2021 budget request has probably passed the Department of Health and Human Services and gone to the Office of Management and Budget but Hahn could add something to it.

Grossman said he would guess Hahn's priorities will be on the things that he will be questioned about during his confirmation hearing: cannabidiol, vaping and tobacco. Grossman noted that these hot button issues are already included in the budget.

(This article originally was published in The Pink Sheet.)