
U.S. Government cancels $766 million Moderna contract to fight pandemic flu
The company said it was notified Wednesday (May 28, 2025) that the Health and Human Services Department had withdrawn funds awarded in July 2024 and in January to pay for the development and purchase of its investigational vaccine.
The funds were awarded through the Biomedical Advanced Research and Development Authority, or BARDA, a program that focuses on medical treatments for potential pandemics.
The new vaccine, called mRNA-1018, utilises the same technology that enabled the rapid development and rollout of vaccines to combat COVID-19.
Health Secretary Robert F. Kennedy Jr. has expressed deep scepticism regarding mRNA vaccines, despite real-world evidence that the vaccines are safe and have saved millions of lives.
The cancelation came as Moderna announced positive interim results from an early-stage trial of the vaccine that targeted H5 bird flu virus, tested in 300 healthy adults.
'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," the company said in a statement.
H5N1 bird flu viruses spread from wild birds into cattle in the U.S. last year, infecting hundreds of animals in several states. At least 70 people in the U.S. have been sickened by bird flu infections, mostly mild. One person died. Scientists fear that continued mutation of the virus could allow it to become more virulent or more easily spread in people, with the possibility that it could trigger a pandemic.
Moderna received $176 million in July 2024 and $590 million in January. The January award would have supported a late-stage clinical trial that could have determined the vaccine's efficacy against pandemic viruses, including bird flu, a company spokesman said.
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State officials have said the data will show how much money is spent on care for immigrants who may not be here legally. Federal law requires emergency rooms to treat any patients who come to the doors. Visits to Holy Family Services' mobile clinic have stopped altogether since Trump took office. The van, which once offered checkups at the doorsteps in the colonias, now sits running on idle. Its constant hum is heard throughout the clinic's campus, to keep medical supplies fresh in the 100-degree temperatures. "These were hard-hit communities that really needed the services," de la Cruz-Yarrison says. "People were just not coming after the administration changed." Immigrants were less likely to seek medical care during Trump's first term, multiple studies concluded. A 2023 study of well-child visits in Boston, Minneapolis and Little Rock, Arkansas, noted a 5% drop for children who were born to immigrant mothers after Trump was elected in 2016. The study also noted declines in visits when news about Trump's plans to tighten immigration rules broke throughout his first term. "It's a really high-anxiety environment where they're afraid to talk to the pediatrician, go to school or bring their kids to child care," says Stephanie Ettinger de Cuba, a Boston University researcher who oversaw the study. A delayed trip to the doctor almost cost 82-year-old Maria Isabel de Perez her son this spring. He refused to seek help for his intense and constant stomach pains for weeks, instead popping Tylenol daily so he could still labor in the farm fields of Arkansas, she says. He put off going to the hospital as rumors swirled that immigration enforcement officials were outside of the hospital. "He waited and waited because he felt the pain but was too scared to go to the hospital," she explains in Spanish through an interpreter. "He couldn't go until the appendix exploded." 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The teenager, who checks in on friends whose parents have been arrested in immigration raids through a text group chat, insists she is "doing OK." Maria left Mexico years ago because dangerous gangs rule her hometown, she explains. She's married now to an American truck driver. "We're not bad people," Maria says from her dining room table, where her 4-year-old son happily eats a lime green popsicle. "We just want to have a better future for our children." Juanita, the prediabetic mother who hasn't filled her prescriptions out of fear, was not sure when she would brave the pharmacy again. But with a cross hanging around her neck, the devout Catholic says she will say three invocations before she does. Explains her 15-year-old son, Jose: "We always pray before we leave."