Moderna Faces Major Setback as Trump Administration Cancels $700M Bird Flu Vaccine Funding
The Trump administration has abruptly canceled a contract worth nearly $700 million with Moderna, halting federal funding for the company’s development of a bird flu vaccine using mRNA technology. The decision, announced Wednesday, marks a significant shift in U.S. pandemic preparedness policy and has sparked concern among health experts and industry leaders.
Background and Funding Details
The contract, originally awarded during the Biden administration, included a $176 million base award in July 2024 and an additional $590 million in January 2025. The funding was intended to accelerate the development and production of mRNA-based vaccines against H5N1 bird flu and other pandemic influenza threats, particularly as outbreaks had begun affecting U.S. dairy cattle and resulted in human infections.
Reasons for Cancellation
The Department of Health and Human Services (HHS), now led by Secretary Robert F. Kennedy Jr., cited ongoing concerns about the safety and efficacy of mRNA vaccine platforms as the primary reason for terminating the agreement. Kennedy, a vocal skeptic of mRNA vaccines, has previously announced that COVID-19 vaccinations would no longer be recommended for healthy children and pregnant women, underscoring a broader policy shift away from mRNA-based public health measures.
Moderna’s Response and Clinical Data
Despite the funding withdrawal, Moderna reported encouraging interim results from its Phase 1/2 trial of the H5N1 bird flu vaccine. The study, involving roughly 300 healthy adults, showed that 98% of participants achieved strong antibody responses after two doses, with the vaccine generally well-tolerated. Moderna CEO Stéphane Bancel stated, “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,” and confirmed the company would seek alternative funding to continue development.
Broader Context and Implications
The cancellation comes amid heightened scrutiny of mRNA vaccine technology. The FDA recently required updated warning labels for Moderna’s COVID-19 vaccine to include risks of heart-related injuries, particularly in young males. Additionally, Moderna withdrew its application for a combined COVID-19 and influenza vaccine after questions were raised about insufficient efficacy data. Some critics have also voiced concerns about potential links between mRNA vaccines and aggressive cancers, though these claims are still under investigation and not substantiated by regulatory authorities.
Impact on Pandemic Preparedness
The termination of the Moderna contract effectively ends one of the last major Biden-era initiatives focused on rapid vaccine development for emerging pandemic threats. Health experts warn that this move could undermine the nation’s readiness for future outbreaks, especially as H5N1 continues to circulate among animals and sporadically infect humans in the U.S. and abroad.
Moderna has pledged to continue its vaccine research and development efforts, seeking new partnerships and funding sources to advance its pandemic preparedness programs.