Trump Administration Cancels $766M Moderna Contract
Introduction to the Cancellation
The Trump administration has canceled $766 million awarded to drugmaker Moderna Inc. to develop a vaccine against potential pandemic influenza viruses, including the H5N1 bird flu.
The company said it was notified Wednesday that the Health and Human Services Department had withdrawn funds awarded in July 2024 and in January to pay for development and purchase of its investigational vaccine.
Background on the Funding
The funds were awarded through the Biomedical Advanced Research and Development Authority, or BARDA, a program that focuses on medical treatments for potential pandemics.
The new vaccine, called mRNA-1018, used the same technology that allowed development and rollout of vaccines to fight Covid-19 in record time.
Reason for Cancellation
Health Secretary Robert F. Kennedy Jr. has expressed deep skepticism regarding the safety of mRNA vaccines.
The cancelation came as Moderna announced positive interim results from an early-stage trial of the vaccine that targeted H5 bird flu virus, tested in 300 healthy adults.
Impact of the Cancellation
“While the termination of funding from HHS adds uncertainty, we are pleased by the robust immune response and safety profile observed in this interim analysis,” the company said in a statement.
H5N1 bird flu viruses spilled from wild bird into cattle in the U.S. last year, infecting hundreds in several states. At least 70 people in the U.S. have been sickened by bird flu infections, mostly mild. One person died. Scientists fear that continued mutation of the virus could allow it to become more virulent or more easily spread in people, with the possibility that it could trigger a pandemic.
Details of the Contract
Moderna received $176 million in July 2024 and $590 million in January. The January award would have supported a late-stage clinical trial that could have determined the vaccine’s efficacy against pandemic viruses, including bird flu, a company spokesman said.
Additional Information
The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.
Originally Published: May 28, 2025 at 5:08 PM PDT
Conclusion
The cancellation of the $766 million contract to Moderna Inc. for the development of a vaccine against potential pandemic influenza viruses, including the H5N1 bird flu, has raised concerns about the impact on public health and the fight against potential pandemics. The decision has been met with skepticism, especially given the positive interim results from the early-stage trial of the vaccine.
FAQs
Q: Why was the contract cancelled?
A: The contract was cancelled due to the Health and Human Services Department withdrawing funds awarded to Moderna Inc.
Q: What was the vaccine being developed for?
A: The vaccine, called mRNA-1018, was being developed to fight against potential pandemic influenza viruses, including the H5N1 bird flu.
Q: How much money was awarded to Moderna Inc.?
A: Moderna Inc. received $176 million in July 2024 and $590 million in January, totaling $766 million.
Q: What is the potential risk of the H5N1 bird flu virus?
A: The H5N1 bird flu virus has the potential to mutate and become more virulent or easily spread in people, triggering a pandemic.
