Califf Warns on User Fee Layoff Notices in September

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FDA commissioner Robert Califf warned 7/28 that FDA employees affected by user fee funds could start getting layoff notices in early September if House and Senate leaders don’t complete the user fee reauthorization legislative package in the coming weeks. Lawmakers are at a standstill over language added to the bills that would revamp certain areas of the agency. The user fee programs will sunset on 9/30 without an agreement on the reauthorization package.

As reauthorization efforts stalled earlier this month, Senator Richard Burr (R-NC) introduced a watered-down user fee reauthorization bill that is intended to address Republican concerns over the current user fee package that the Health, Education, Labor and Pensions (HELP) Committee marked up last month. HELP committee ranking member Burr said the new measure is a cleaner version of the earlier bill and removes a “partisan reconciliation package that includes devastating drug pricing proposals” that Senate Democrats added.

“Unfortunately, the user fee package reported out of (HELP) Committee would, if enacted, undermine the very purpose of the user fee program,” Burr said in a release. “The policies added to this bill endanger the development of drugs for rare diseases, imperil intellectual property rights, threaten Americans’ access to breakthrough treatments and cures, and deter private sector innovation. In effect, this proposal would compromise the FDA’s overall ability to keep pace with advancements in the industry it regulates. And the Democrats’ recently released drug pricing proposal would further reduce private sector investment, making it more difficult for Americans’ to access new, lifesaving medicines.”

Earlier this month, commissioner Califf told the Alliance for a Stronger FDA that the uncertainty around the reauthorization hurts the agency’s staff recruitment and retention efforts. “Who wants to work in an organization if you’re afraid that these jobs are not even going to exist in the next short period of time?” he asked. “We really need to avoid that… If user fees are not funded, we’ll review products as quickly as we can, but the timelines go away and the commitment to the timelines goes away.”

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