Federal News Update: FDA RTF decision, FY26 funding secured, and FDA Modernization Act 3.0

Table of Contents

By Patrick Cooney, for AMRC

FEDERAL AGENCY NEWS 

FDA Refusal to Review Moderna’s Flu Vaccine Raises Questions

The U.S. Food and Drug Administration’s recent decision to decline review of Moderna’s investigational mRNA-based seasonal influenza vaccine (mRNA-1010) has generated significant discussion across the clinical-research ecosystem, with implications for trial design, regulatory predictability, and investment in vaccine innovation.

In February 2026, the FDA issued a Refusal-to-File (RTF) letter, determining that Moderna’s biologics license application did not contain an “adequate and well-controlled” study because one phase 3 trial used a standard-dose influenza vaccine comparator rather than what regulators deemed the “best-available standard of care” for older adults. The agency emphasized that its decision was based solely on trial-design issues and did not cite safety or efficacy concerns about the vaccine itself.

Moderna reported that its submission included two positive phase 3 trials involving more than 43,000 participants, both of which met primary endpoints and demonstrated statistical superiority to their respective comparators. The company also stated that the comparator strategy had been previously discussed with FDA reviewers and that additional analyses requested by the agency were included in the submission.

The RTF decision has prompted concern among clinical-trial sponsors and research organizations about regulatory consistency and transparency. Analysts note that RTF letters are relatively infrequent and are typically used when applications are incomplete, not when regulators disagree with trial design after completion. Some observers also highlighted that the letter was signed at the Center director level, an unusual step that may signal heightened leadership involvement in review decisions.

Industry stakeholders have raised questions about whether the decision reflects evolving expectations for comparator selection and trial standards. The FDA has argued that trial participants—particularly older adults—should have received a high-dose flu vaccine comparator to reflect current U.S. clinical practice, while Moderna maintains that the study design aligned with prior agency feedback and regulatory precedent.

The decision has sparked broader debate across the biopharmaceutical and clinical research communities. Some experts worry that unexpected regulatory reversals could deter investment in vaccine and mRNA-based platforms or shift development toward non-U.S. regulatory pathways. The case underscores increasing scrutiny of comparator choice and the expectation that trials reflect real-world standards of care, particularly for older or high-risk populations. Commentators have suggested the decision may signal a more cautious or politically scrutinized regulatory environment for vaccines, though federal officials maintain the determination was based on trial design and ethical considerations.

Notably, the vaccine remains under review in other global markets, and Moderna has requested further discussions with the FDA to determine a potential path forward, including resubmission or additional analyses.

On Capitol Hill, reaction to the FDA’s refusal to review Moderna’s mRNA-based influenza vaccine has been measured but attentive, with staff and members on key oversight committees quietly raising concerns about regulatory predictability, comparator-trial expectations, and potential impacts on U.S. clinical-trial competitiveness. Lawmakers from both parties have asked whether evolving FDA standards—particularly around comparator selection and “best available” standard-of-care requirements—were clearly communicated to sponsors before pivotal trials began, and whether unexpected refusal-to-file decisions could discourage investment in domestic trials or accelerate the migration of late-stage research overseas. At the same time, some members have defended the agency’s emphasis on rigorous trial design and patient-protection standards, framing the decision as consistent with ensuring that studies reflect current clinical practice for high-risk populations such as older adults. While no formal hearings have been announced, the issue is being monitored by Senate HELP and House Energy & Commerce staff as part of broader congressional oversight of FDA vaccine policy and the stability of the U.S. clinical-research environment.

What this means for the clinical-trial community

For multisite clinical-trial networks and sponsors, the episode highlights several emerging realities:

  • Comparator selection is now a central regulatory risk. Even previously accepted designs may face reevaluation if standards of care evolve.
  • Front-loaded regulatory engagement is critical. Sponsors may need more formalized agreements with regulators on trial design before initiating pivotal studies.
  • Operational reliability matters. As approval pathways compress, trial execution and design alignment with regulators become increasingly consequential.

CAPITOL HILL NEWS

Congress Completes FY26 Appropriations: Research Funding Avoids Deep Cuts 

On February 3, 2026, President Trump signed into law H.R. 7148, the Consolidated Appropriations Act of 2026, completing full-year funding for key health care-related federal agencies and delivering critical stability for the research enterprise. The legislation represents the culmination of a member-driven, bicameral appropriations process that successfully protected research funding against the administration’s proposed deep cuts.

The final appropriations package delivered a decisive congressional rejection of the administration’s proposed cuts to key research agencies:

  • National Institutes of Health (NIH): Congress appropriated $48.7 billion for NIH, representing a $415 million increase over FY25 levels. This stands in stark contrast to the administration’s budget request, which proposed a 40% reduction to the agency. The increase, while modest when accounting for inflation, demonstrates bipartisan commitment to biomedical research and sends a clear signal of congressional support for the research enterprise.
  • National Science Foundation (NSF): NSF received $8.75 billion in the final bill, more than double the administration’s requested $3.9 billion. The Research and Related Activities account was funded at $7.177 billion, while STEM Education received $938 million. These funding levels represent a significant victory for the scientific community, which mobilized against proposed cuts that would have devastated the agency’s research portfolio.
  • National Institute of Standards and Technology (NIST): NIST funding was set at $1.847 billion, more than double the administration’s $830 million request. This represents a 21% increase over FY25 enacted levels and includes substantial increases for NIST research activities, the Manufacturing Extension Partnership, and AI standards development.

Beyond funding levels, the appropriations package includes several policy provisions of importance to research organizations:

  • Facilities and Administrative (F&A) Cost Protection: The legislation includes language barring the administration from unilaterally altering current F&A cost reimbursement rates. This protection covers every major research-funding agency, including NIH, NSF, and the Department of Defense. The provision represents a significant victory for research institutions that rely on F&A cost recovery to support the infrastructure necessary for conducting federally funded research.
  • NIH Grant Funding Structure: The bill prohibits NIH from increasing the proportion of grants that are forward funded, effectively blocking the administration’s proposal to transition 50% of external awards away from incremental funding. This proposal, had it been implemented, would have dramatically reduced the number of new awards and success rates by concentrating resources on multi-year commitments rather than distributing funds across a broader portfolio of grants.

The completion of FY26 appropriations with strong research funding has several important implications. Full-year funding eliminates the uncertainty that accompanies continuing resolutions, allowing research institutions to plan confidently for the fiscal year and execute long-term research strategies. The increase in NIH funding and strong support for NSF suggest that success rates for competitive grants may stabilize or potentially improve, though demand for funding continues to outpace available resources. Also, the preservation of F&A cost rates protects institutions’ ability to maintain the administrative, facilities, and compliance infrastructure necessary to conduct multi-site research programs effectively. 

FDA Modernization Act 3.0 – Implications for Clinical Trials

The FDA Modernization Act 3.0 (FDAMA 3.0) (S.355) represents the next phase of congressional efforts to update federal drug- and device-approval frameworks for a rapidly evolving research environment. Building on reforms enacted in 2022 that first allowed greater use of non-animal testing methods, the new legislation would further formalize alternative preclinical approaches and direct the U.S. Food and Drug Administration (FDA) to integrate emerging technologies into regulatory review.

The Senate passed the FDA Modernization Act 3.0 in December 2025 with bipartisan support, and the bill now awaits action in the House of Representatives. If enacted, it would amend the Federal Food, Drug, and Cosmetic Act to require the FDA to issue guidance and rulemaking clarifying how non-animal methods—such as advanced cell-based assays, organ-on-chip systems, computational modeling, and artificial-intelligence tools—can be used in place of traditional animal testing where scientifically appropriate. The measure builds directly on the 2022 FDA modernization law that removed a longstanding statutory requirement for animal testing prior to human trials

The legislation would:

  • Direct FDA to establish a clear regulatory pathway for non-animal and human-relevant testing methods in drug development.
  • Require the agency to update guidance and review standards for sponsors using alternative preclinical approaches.
  • Encourage use of computational modeling, AI-assisted prediction tools, and advanced laboratory models to generate safety and efficacy data.
  • Expand collaboration between FDA, NIH, and external stakeholders to validate new testing technologies.
  • Require periodic reporting to Congress on progress toward implementation.

While FDAMA 3.0 focuses primarily on preclinical testing, its downstream effects on clinical research could be significant:

1. Faster entry into human trials: Sponsors may be able to initiate Phase I trials using validated non-animal data packages, potentially shortening development timelines and reducing costs.

2. New evidentiary standards: FDA would have greater flexibility to evaluate novel preclinical evidence, which could influence IND submissions, trial design, and risk-assessment frameworks.

3. Innovation in trial design: Advanced modeling and simulation tools could support adaptive trial designs, smaller initial cohorts, and more targeted patient selection.

4. Global competitiveness: The legislation aims to ensure the United States remains competitive with Europe and Asia, where regulators are increasingly embracing alternative testing methods and digital-trial infrastructure.

Given bipartisan support and alignment with broader FDA modernization efforts, FDAMA 3.0 has a reasonable chance of advancing in 2026, potentially as part of a larger health-innovation or user-fee legislative package. Even prior to enactment, the FDA has signaled growing openness to alternative testing strategies, suggesting that many of the bill’s core concepts are already influencing regulatory practice.