Why Tobacco Detracts from FDA’s Budget Case
Medical product user fees account for 38% of FDA’s funding, but when you add tobacco user fees, which fund 100% of the agency’s tobacco-related programs, they raise the overall user fee percentage to 47%. The tobacco fees skew the budget numbers and may detract from legitimate budget arguments when appropriators look to finalize the taxpayer-funded budget authority (BA) numbers each year, suggests the Alliance for a Stronger FDA in its weekly update.
The Alliance says it always calculates using FDA’s total non-tobacco budget, which for the coming fiscal year is likely to be $4.474 billion. “Our rationale is two-fold,” the advocacy group says. “First, tobacco control programs at FDA were created because of industry user fees and are totally funded by them. The programs have never been premised on taxpayer funding. Second, when FDA funding is characterized by BA vs. user fees, it is food and drug programs that the listener is thinking about, not tobacco. If you include tobacco user fees, they skew the numbers and distort what people really want to know (some variant of: how much do medical product companies contribute to FDA’s programs).”
So, the 9% shift (48% vs 38%) in user fee reliance from adding tobacco fees “exemplifies why including them does not provide an accurate picture,” the Alliance says.