More FDA Cuts Coming Down the Road

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Just as the dust is barely settled from recent firings of about 1,000 FDA probationary staff and the subsequent rehiring of 200 CDRH reviewers, the Trump administration issues a memo asking agencies like FDA to “undertake preparations to initiate large-scale reductions in force (RIFs), consistent with applicable law.” They are ordered to develop and submit by 3/13 agency reorganization plans.

The good news is that it appears the memo excludes cuts to user fee programs. “Pursuant to the President’s direction, agencies should focus on the maximum elimination of functions that are not statutorily mandated while driving the highest-quality, most efficient delivery of their statutorily-required functions,” the memo says. FDA’s user fee programs are mandated by Congress and reauthorized every five years. The fees pay the salaries for those FDA employees working to review product applications, and so there are no cost savings gained by firing these employees.

The bad news is that there are thousands of employees that are not funded by user fees and whose jobs could be in jeopardy. The memo says agencies should seek to “consolidate areas of the agency organization chart that are duplicative; consolidate management layers where unnecessary layers exist; seek reductions in components and positions that are non-critical; implement technological solutions that automate routine tasks while enabling staff to focus on higher-value activities; close and/or consolidate regional field offices to the extent consistent with efficient service delivery; and maximally reduce the use of outside consultants and contractors.”

Agency heads are also being told to collaborate with team leads at the Elon Musk-led Department of Government Efficiency to develop their RIF plans.

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