The Department of Health and Human Services has terminated a $590 million contract with Moderna for developing vaccines against H5N1 bird flu and other pandemic influenza subtypes, marking a significant shift in the federal government's pandemic preparedness strategy under the Trump administration.
The contract cancellation affects both the late-stage development of Moderna's bird flu vaccine for humans and the government's option to purchase doses. The Biden administration had awarded the $590 million contract in January to advance development and support clinical studies for up to five additional subtypes of pandemic influenza, building on a previous $176 million award from the Department of Health and Human Services for completing late-stage development and testing of the H5N1 vaccine.
HHS Cites Scientific and Safety Concerns
HHS Communications Director Andrew Nixon stated that after a rigorous review, the agency concluded that continued investment in Moderna's H5N1 mRNA vaccine was "not scientifically or ethically justifiable." Nixon emphasized that "mRNA technology remains under-tested" and criticized the previous administration for allegedly concealing legitimate safety concerns from the public.
"We are not going to spend taxpayer dollars repeating the mistakes of the last administration," Nixon said in a statement, adding that the project did not meet the scientific standards or safety expectations required for continued federal investment.
Expert Concerns Over Pandemic Preparedness
The decision has drawn criticism from public health experts who view mRNA technology as crucial for rapid pandemic response. Dr. Amesh Adalja, senior scholar at the Johns Hopkins Center for Health Security, described the cancellation as discarding "what could be one of the most effective and rapid tools to combat an avian influenza outbreak."
Dr. Ashish Jha, dean of the Brown University School of Public Health and former White House COVID-19 response coordinator, called the attack on mRNA vaccines "beyond absurd," noting that these vaccines have been administered nearly 2 billion times to hundreds of millions of people worldwide. "If Bird Flu starts spreading from people to people, we will come to regret this as the day we decided to put the lives of the American people at grave risk," Jha warned.
Current Bird Flu Situation
Bird flu has been circulating worldwide since the 1990s and was first detected in American dairy farms in March 2024. The virus has infected 70 people over the past year, mostly farm workers, and killed one person. While the virus has not demonstrated person-to-person transmission, scientists remain concerned about its potential to develop this capability.
The United States maintains vaccines against H5 viruses in its Strategic National Stockpile, but these are manufactured using older technology that cannot match the production speed of mRNA platforms.
Moderna's Response and Future Plans
Despite the contract termination, Moderna announced positive interim data from a mid-stage trial testing its H5 bird flu vaccine in approximately 300 healthy adults. The company reported that the vaccine demonstrated "a rapid, potent and durable immune response" with a favorable safety profile.
Moderna CEO Stephane Bancel acknowledged that while the funding termination adds uncertainty, the company remains pleased with the robust immune response and safety profile observed in trials. "We will explore alternative paths forward for the program," Bancel stated, emphasizing that the clinical data underscore "the critical role mRNA technology has played as a countermeasure to emerging health threats."
The company has been relying on revenue from newer mRNA shots, including its bird flu vaccine and experimental COVID-flu combination vaccine, to compensate for declining post-pandemic demand for its COVID-19 vaccine.
Broader Policy Implications
The contract cancellation reflects the Trump administration's broader review of mRNA research and technology, with officials emphasizing the need for transparency in vaccine development. Health Secretary Robert F. Kennedy Jr. has previously questioned vaccine use and suggested controversial approaches to managing bird flu outbreaks.
The administration has also made other changes to pandemic response infrastructure, including firing FDA employees responsible for managing the federal government's bird flu response and pausing milk quality testing programs.