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April 16, 2026

FDA-Related Legislative and Regulatory Proposals and Funding Change the President's FY27 Budget

Between a Doorstop and a Starting Gun

The old joke goes that the president's proposed budget is good for little more than serving as a doorstop, as Congress will make its own decisions regarding the budget. However, the proposals related to the Food and Drug Administration (FDA) included in the fiscal year 2027 (FY27) President's Budget may represent a more substantive starting gun for congressional consideration of potential FDA reforms, especially ahead of the 2027 reauthorization of the human medical product user fee programs.

This update summarizes: (1) the FY27 FDA funding request and how it compares to the agency's current budget, as well as prior years; (2) regulatory proposals that the Trump administration has included in this budget that it will work on advancing in 2026 and into the future; and (3) FDA legislative proposals in the budget.

While funding levels are determined through the congressional appropriations process and legislative proposals would have to be advanced by Congress, the requested funding and legislative proposals offer important insight into the administration's priorities and areas where the administration may seek statutory changes from Congress.

Key Takeaways

Proposed Budget

The FY27 President's Budget requests $7.2 billion in total funding for FDA, including $3.3 billion in discretionary budget authority and $3.9 billion in user fees, representing a modest overall increase compared to FY26 enacted levels. This stands in contrast to the administration's proposal to enact significant cuts to other agencies within the Department of Health and Human Services.

Legislative Proposals

The budget proposes a broad package of statutory changes, reinforcing agency priorities in the life sciences to lower drug prices, increase domestic manufacturing, expedite innovation especially to compete against China, and strengthen enforcement authorities related to (alleged) misleading advertisements and quality violations. In food, FDA has proposed additional authority related to chemicals added to food and for critical foods in particular, but did not propose any legislative changes to the generally recognized as safe (GRAS) process.

We have included charts at the end of this update to summarize changes in the legislative proposals over the past four proposed budgets, as well as the last proposed budget of the first Trump administration.

FDA Budget Overview

The President's Budget traditionally presents FDA funding across a combination of discretionary budget authority (i.e., appropriations from Congress) and collections of user fees paid by industry. FDA's current budget for FY26 is over $6.9 billion, including $3.4 billion in discretionary budget authority — a rejection of the deeper cuts proposed in the administration's FY26 request — and $3.6 billion in user fees. The FY26 President's Budget request proposed $6.8 billion in total FDA funding, including $3.2 billion in discretionary budget authority and $3.6 billion in user fees. That request represented a proposed cut of $400 million, or 11.4%, from the FY25 enacted budget.

In the FY27 President's Budget request, the administration has proposed $7.2 billion in total funding (an increase of 3.3% above the FY26 enacted level). This is split between $3.3 billion in discretionary budget authority (a decrease of 1.4% of the FY26 enacted level), and $3.9 billion in user fees (an increase of 7.7% of the FY26 enacted level).

The FY27 budget emphasizes maintaining operational continuity, inspection capacity, and regulatory modernization, while advancing food safety, domestic manufacturing, and emerging technologies. Key priorities include protecting user fee programs to maintain timely product review performance; supporting "Make America Healthy Again" initiatives focused on removing unsafe food chemicals, advancing artificial intelligence and machine learning tools, and developing alternatives to animal testing; strengthening global inspection capabilities and transitioning routine food inspections to state partners while expanding foreign inspection capacity; encouraging domestic pharmaceutical manufacturing to strengthen supply chain resilience; and continuing agency-wide operational reforms intended to streamline processes and reduce administrative burden.

Overview of FDA Legislative Proposals

FDA legislative proposals in the President's Budget signal areas where the administration may seek statutory authority from Congress. Historically, some proposals recur across multiple budget cycles, while others evolve or are ultimately enacted by Congress. The Trump administration's streamlined FY26 FDA legislative proposals — which came as the administration was still ramping up the hiring of staff following the inauguration — focused on reforming importation of unsafe medical devices, greater supply chain transparency on drug labels, reporting more detailed drug manufacturing data, increased authority to act on false data in product applications, simplifying the biosimilar interchangeability framework, and authorizing the destruction of unsafe imported products.

Some of the most noteworthy FDA legislative proposals in the FY27 budget include these below.

Faster Review Times and Expediting/Incentivizing Development of New Drugs

  • Create a risk-based expedited clinical trial pathway as an alternative to the traditional Investigational New Drug (IND) process for certain early-phase studies.
  • Establish an abbreviated licensure pathway for certain biologics, conceptually similar to the 505(b)(2) pathway for drugs.
  • Permanently reauthorize the Rare Pediatric Disease Priority Review Voucher program.

Postmarket Authorities and Inspections

  • Codify requirements related to "fair balance" and creating a misleading impression for advertisements of FDA-approved drugs, and create new requirements for the advertising of compounded drugs.
  • Create multiple new authorities related to requiring postapproval quality updates, disclosing certain impurity information that pose human or animal health risks, penalties for failing to provide data about active pharmaceutical ingredient (API) manufacturing volumes, and retention of records and data for medical products.
  • Clarify FDA's ability to enforce requirements related to manufacturing changes for drugs and biologics.
  • Remove obligations on FDA related to pediatric postmarket safety reporting to give the agency more flexibility to take a risk-based approach.
  • Broaden FDA's mutual recognition authority to include bioresearch monitoring inspections conducted by peer foreign regulators.
  • Expand FDA's authority to require the destruction of articles that are refused entry to the US and that pose a significant public health risk.

Transparency and Review Process

  • Explicitly authorize disclosure of certain Complete Response Letter (CRL) information, intended to improve drug development efficiency.
  • Increase FDA flexibility in advisory committee use and composition, including the flexibility to not appoint consumer and industry representatives to such committees and potentially remove requirements around holding a minimum number of meetings.
  • Remove the current 180-day statutory deadline for review of new drug applications (NDAs) and abbreviated new drug applications (ANDAs) to codify longstanding application review procedures in place under the user fee programs, and change the hearing-related processes for application-related determinations with appeal processes modeled after the expedited procedures for accelerated approval.

Biosimilars and Generics

  • Streamline biosimilar review by eliminating the separate interchangeability standard, creating a presumption that comparative clinical studies for efficacy are not needed to support a demonstration of biosimilarity, and removing the requirement that biosimilars must be reviewed by the same review division responsible for approving the reference product.
  • Clarify patent listing requirements to specify that to be eligible for a 30-month stay, the reference product sponsor must submit a patent application before the follow-on application is submitted to FDA.
  • Explicitly address the submission of generic drug-device combination products. Address statutory gaps related to generic drug-device combination products.
  • Allow domestic manufacturers of generic drugs (i.e., companies based in the US that manufacture the drugs in the US or are making investments in domestic facilities to substantially increase US capacity) to file ANDAs with Paragraph IV certifications one month earlier than other manufacturers.

Animal Drugs

  • Several of the authorities mentioned above apply explicitly to animal drugs, including the postmarket authorities related to postapproval quality updates, disclosure of impurities, API manufacturing volume reporting, and destruction authority for products refused entry. The proposal related to 30-month stays would also apply to animal drug applications.
  • In other instances, such as the proposal to require the retention of data and records for "medical products," it is unclear whether that would extend to animal drugs.

Food

  • Give FDA authority to establish binding limits for contaminants in food, require final testing of products for contaminants, and address mandatory recall authority for foods with contaminants above established levels. And for infant formula, require industry to report all positive results for certain pathogen testing and expand environmental monitoring requirements.
  • Require industry to provide FDA with certain postmarket data or to conduct certain postmarket evaluations of chemicals added to food.
  • Authorize FDA to collect registration fees from foreign facilities and establish a biennial registration fee for all foreign human and animal food facilities.
  • Authorize FDA to share certain real-time information such as foodborne illness surveillance data, laboratory sampling testing information, consumer complaints, and other information with state, local, Tribal and US territorial authorities.

Tobacco

  • Strengthen requirements related to importation, change the inspection approach for domestic establishments from biennial to risk-based, and narrow judicial review on decisions related to applications.
  • Amend the definition of "tobacco product" to include nicotine analogs, and thus establish FDA jurisdiction over such products.

Tracking FDA Legislative Proposals over Time

Drawing on prior FDA budget submissions, the following tables track FDA's legislative proposals from FY21 (the final budget request of the first Trump administration), FY24 and FY25 (years three and four of the Biden administration, respectively), FY26 (the first year of the second Trump administration), and now the current proposed budget. This table focuses on the proposals most likely to be relevant to regulated industry, and does not include every proposal from each budget.

"Y" means that this policy was included in that budget proposal. "N" means that the policy was not included.

Faster Review Times and Expediting/Incentivizing Development

Legislative Proposals

FY27 Budget
Trump II-2

FY26 Budget
Trump II-1

FY25 Budget
Biden-4

FY24 Budget
Biden-3

FY21 Budget
Trump I-4

Create a new clinical trial notification pathway to serve as an alternative to the burdensome existing investigational new drug pathway to accelerate drug development timeline to Make America Healthy Again.

  • Create an optional, risk-based Expedited IND pathway for certain Phase 1 clinical trials.

Y

N

N

N

N

Create an additional abbreviated licensure pathway for biological products.

  • Create an abbreviated licensure pathway for biological products similar to the pathway for follow-on drug products in section 505(b)(2) of the FD&C Act.

Y

N

N

N

N

Permanently authorize the rare pediatric disease priority review voucher program and related user fees.

  • Permanently reauthorize the Rare Pediatric Disease Priority Review Voucher (PRV) program.

Y

N

N

N

N

 

Transparency and Review Process

Legislative Proposals

FY27 Budget
Trump II-2

FY26 Budget
Trump II-1

FY25 Budget
Biden-4

FY24 Budget
Biden-3

FY21 Budget
Trump I-4

Allow disclosure of certain information in complete response letters.

  • Provide explicit authority to disclose certain information related to FDA's issuance of CRLs.

Y

N

N

N

N

Increase agency flexibility regarding the convening of advisory committees and the composition of such committees.

  • Increase flexibility to appoint representatives of consumer interests and the drug manufacturing industry to Scientific Advisory Panels only where appropriate, rather than as a requirement.

Y

N

N

N

N

Align the FD&C Act with longstanding timelines and procedures governing application reviews and streamline appeals when an application is not approvable.

  • Remove the 180-day timeframe to either approve an application or give the applicant notice of an opportunity for a hearing on whether the application is approvable.

Y

N

N

N

N

 

Biosimilars and Generics

Legislative Proposals

FY27 Budget
Trump II-2

FY26 Budget
Trump II-1

FY25 Budget
Biden-4

FY24 Budget
Biden-3

FY21 Budget
Trump I-4

Clarify when patent information must be submitted for a 30-month stay to be available.

  • Clarify that a 30-month stay of approval of an ANDA, 505(b)(2) NDA, or ANADA is available only in connection with patents that are submitted by the holder of the brand drug application before the ANDA, 505(b)(2) NDA, or ANADA is submitted.

Y

N

N

N

N

Allow companies manufacturing generic medications domestically to file Paragraph IV certifications earlier, giving exclusivity rights to US manufacturers.

  • Allow companies based in the US that currently manufacture a generic drug in the US or are making investments in new domestic manufacturing facilities to substantially increase manufacturing capacity of a generic drug in the US.

Y

N

N

N

N

Eliminate the statutory distinction between the approval standard for biosimilar and interchangeable biosimilar products.

  • Remove the separate statutory standard for interchangeability to streamline biosimilar approvals and promote competition.

Y

Y

Y

N

N

Explicitly address generic drug-device combination products.

  • Clarify FDA's authority and approval requirements for generic drug-device combination products to ensure generics can rely on appropriate regulatory pathways even when reference products include device constituent parts.

Y

N

Y

Y

N

Amend three-year new clinical investigation exclusivity.

  • Amend three-year exclusivity to where the applicant seeks such exclusivity and where the data supporting the exclusivity demonstrates the hypothesized effect of the drug, and to prevent information on new safety risks from blocking competition.

N

N

Y

N

N

Create a safe harbor for "skinny labeling."

  • Establish a statutory safe harbor clarifying that generic applicants may omit protected indications or patented conditions of use from their labeling (i.e., "skinny labeling") without incurring liability.

N

N

Y

Y

N

Amend the 180-day forfeiture provision addressing failure to market.

  • Revise the statutory forfeiture framework for 180-day generic exclusivity to prevent first applicants from delaying commercial marketing in ways that block subsequent generics from entering the market.

N

N

Y

Y

N

Require full ingredient disclosure for drugs to promote generic competition.

  • Require brand drug manufacturers to provide FDA with complete qualitative and quantitative formulation information, including inactive ingredients and other necessary details, to facilitate efficient review of ANDAs and reduce barriers to generic entry.

N/A (became law)

N

Y

Y

N

 

Postmarket Medical Product Authorities

Legislative Proposals

FY27 Budget
Trump II-2

FY26 Budget
Trump II-1

FY25 Budget
Biden-4

FY24 Budget
Biden-3

FY21 Budget
Trump I-4

Holding firms accountable for using misleading advertising to drive profits at the expense of consumers.

  • Deem a drug misbranded as a DTC drug in advertisement creates a misleading impression regarding FDA approval, including by making or suggesting overstated representations that are not supported.

Y

N

N

N

N

Postapproval quality updates.

  • Grant FDA express authority to require drug applicants to submit a postapproval quality update to provide additional information on ongoing quality.

Y

N

N

N

Y

Modernizing the requirements in BPCA and PREA for agency review of pediatric postmarket safety reporting.

  • Remove the time-based requirement for postmarket safety reviews, allowing FDA to dedicate resources to real-time, risk-based surveillance activities.

Y

N

N

N

N

Mutual recognition authority for bioresearch monitoring inspection.

  • Give FDA authority to recognize GCP or GLP inspection reports from foreign regulatory counterparts that the agency finds capable of conducting such inspections.

Y

N

N

N

N

Give FDA significant enforcement authorities, including civil monetary penalties and the authority to pull products off the market if active pharmaceutical ingredient source data is not reported.

  • Impose civil monetary penalties on finished dosage form manufacturers who fail to disclose how much API is used from each API manufacturer.

Y

N

N

N

N

Clarify FDA's enforcement authority regarding manufacturing changes to approved drugs and biological products.

  • Clarify FDA's ability to enforce requirements related to manufacturing changes for drugs and biologics.

Y

N

N

N

N

Require retention of data and records supporting marketed medical products and marketed medical product applications and act upon submissions containing fraudulent or unreliable data.

  • Require sponsors and manufacturers to retain underlying data supporting both application and non-application medical products for the lifetime of the product and explicitly strengthen FDA's authority to suspend, withdraw, or otherwise act upon applications supported by fraudulent or unreliable data.

Y

Y

Y

Y

N

Expand FDA's ability to disclose and use certain information related to impurities in drugs that pose a risk to the public health.

  • Broaden FDA's authority to disclose and internally use information related to drug impurities that may present public health risks, including sharing with other stakeholders when necessary to mitigate harm.

Y

N

Y

N

N

Require destruction of imported products that pose a significant public health risk.

  • Authorize FDA to require destruction, rather than re-export, of certain imported products that present significant public health risks, improving border enforcement efficiency.

Y

Y

Y

Y

N

Require site master files for drug manufacturing facilities.

  • Require drug manufacturing establishments to submit standardized site master files describing facilities, operations, and quality systems to enhance FDA's inspectional planning and oversight capabilities.

N

N

Y

Y

N

Expansion of FDA tools to provide oversight of FDA-regulated products.

  • Provide FDA with additional administrative and enforcement authorities to address noncompliance across regulated product categories, strengthening its ability to protect public health.

N

N

Y

Y

N

Expanding information disclosure authorities with states.

  • Expand FDA's ability to share certain nonpublic information with state officials to support coordinated enforcement, oversight, and public health responses.

N

N

Y

Y

N

Evaluation of non-application drug manufacturers before marketing.

  • Require certain manufacturers that are not subject to premarket application requirements (e.g., certain over-the-counter or compounded products) to undergo evaluation prior to marketing to ensure compliance with applicable standards.

N

N

Y

Y

N

Streamlining the collection process for FSMA reinspection and recall fees.

  • Improve FDA's authority and mechanisms to assess and collect Food Safety Modernization Act (FSMA) reinspection and recall fees from responsible parties.

N

N

Y

N

N

Require public health data reporting authority to utilize postmarket health information.

  • Require specified entities to provide postmarket health data to FDA to enhance real-world safety surveillance and inform regulatory decision-making.

N

N

Y

N

N

 

Drug Shortages and Preparedness

Legislative Proposals

FY27 Budget
Trump II-2

FY26 Budget
Trump II-1

FY25 Budget
Biden-4

FY24 Budget
Biden-3

FY21 Budget
Trump I-4

Enhanced drug manufacturing amount reporting information.

  • Require manufacturers to submit more detailed production volume and capacity information, including related to reliance on specific suppliers, to improve FDA's ability to anticipate and mitigate shortages.

Y (similar to a proposal noted above)

Y

Y

Y

N

Lengthen expiration dates to mitigate critical drug shortages.

  • Clarify FDA's authority to extend expiration dates of certain drugs, when supported by appropriate scientific data, to help alleviate critical shortages.

N

N

Y

Y

Y

Expand FDA's mandatory recall authority to cover all human and animal drugs.

  • Extend FDA's mandatory recall authority to all human and animal drugs, enabling the agency to require recalls when voluntary action is not sufficient to protect public health.

N

N

Y

Y

N

Require drug manufacturers to notify FDA of an increase in demand.

  • Require manufacturers to notify FDA of significant increases in demand that could impact supply and contribute to shortages.

N

N

Y

Y

N

Require labeling to include the original manufacturer and supply chain information.

  • Require certain drugs to identify the original manufacturer and relevant supply chain information on labeling to enhance transparency and traceability.

N

Y

Y

Y

N

 

Medical Devices

Legislative Proposals

FY27 Budget
Trump II-2

FY26 Budget
Trump II-1

FY25 Budget
Biden-4

FY24 Budget
Biden-3

FY21 Budget
Trump I-4

Remove the temporal limitation on FDA's medical device shortages authorities and require manufacturers to maintain and share risk management plans.

  • Make permanent FDA's medical device shortage authorities and require manufacturers to develop, maintain, and share risk management plans to better prevent and mitigate supply disruptions.

N

N

Y

Y

Y

Disrupt the flow of problematic imported medical devices.

  • Provide additional authorities that would give FDA greater assurances that foreign firms are manufacturing devices intended for import into the United States in compliance with quality systems requirements.

Y

Y

N

N

N

Establishing a regulatory framework for digital health medical devices.

  • Establish a framework that would allow FDA to tailor and apply the appropriate requirements for the reasonable assurance of safety and effectiveness for a software as a medical device product.

N

N

N

N

Y

 

Food and Dietary Supplements

Legislative Proposals

FY27 Budget
Trump II-2

FY26 Budget
Trump II-1

FY25 Budget
Biden-4

FY24 Budget
Biden-3

FY21 Budget
Trump I-4

Strengthen oversight of critical foods and other foods to better protect infants and children.

  • For infant formula, require industry to report all positive results for certain pathogen testing and expand environmental monitoring requirements.
  • Establish authority for FDA to establish binding limits for contaminants in food, require final testing of products for contaminants, and address mandatory recall authority for foods with contaminants above established levels.

Y

N

Y

Y

N

Ensure FDA access to industry data to strengthen food chemical safety.

  • Require industry to provide certain postmarket data, or conduct certain postmarket evaluations, of chemicals added to food.

Y

N

N

N

N

Collect foreign food facility registration fees.

  • Establish a biennial registration fee for all foreign human and animal food facilities.

Y

N

N

N

N

Share food safety information with state, local, tribal, and territorial authorities.

  • Authorize FDA to share certain food-related information with state, local, tribal, and US territorial authorities.

Y

N

N

N

N

Prevent food shortages, including critical foods.

  • Strengthen FDA's authorities to identify, prevent, and respond to shortages of critical foods, including enhanced reporting and supply chain visibility tools.

N

N

Y

Y

N

Modernize the Dietary Supplement Health and Education Act (DSHEA).

  • Update the dietary supplement regulatory framework to enhance transparency, strengthen FDA oversight authorities, and improve tools to address unsafe or unlawful products in the marketplace.

N

N

Y

Y

Y

 

Animal Drugs

Legislative Proposals

FY27 Budget
Trump II-2

FY26 Budget
Trump II-1

FY25 Budget
Biden-4

FY24 Budget
Biden-3

FY21 Budget
Trump I-4

Enhance availability of generic animal drugs.

  • Create an exception in labeling requirements for generic animal drugs from the requirement that a generic animal drug's labeling be the same as the labeling of a reference-listed new animal drug (RLNAD) where the RLNAD is approved in more than one "major species."

N

N

Y

Y

Y

Provide a structured and tiered risk-based framework for biologic products for animals subject to FDA regulation.

  • Establish a clearer, risk-based regulatory framework for certain animal biologics under FDA jurisdiction to improve predictability and efficiency, including a path to market for lower-risk products.

N

N

Y

Y

N

Regulate certain articles as zootechnical animal food substances.

  • Clarify FDA's authority to regulate certain zootechnical substances intended for use in animal food to ensure appropriate safety and oversight.

N

N

Y

N

N

Enhance postmarket safety of animal drugs.

  • Strengthen FDA's postmarket surveillance and enforcement authorities for animal drugs to better identify and address safety concerns.

N

N

Y

Y

N

Prevent animal drug diversion and misuse.

  • Enhance FDA's tools to prevent diversion and inappropriate use of approved animal drugs.

N

N

Y

N

N

Change in agency regulatory oversight responsibility for certain new animal drug products.

  • Clarify or adjust regulatory oversight responsibility for certain products between FDA and the Environmental Protection Agency.

N

N

Y

Y

Y

 

Tobacco

Legislative Proposals

FY27 Budget
Trump II-2

FY26 Budget
Trump II-1

FY25 Budget
Biden-4

FY24 Budget
Biden-3

FY21 Budget
Trump I-4

Strengthen enforcement against importation of unauthorized ENDS and other illegal tobacco products.

  • Amend the statute to strengthen requirements related to importation, change the inspection approach for domestic establishments from biennial to risk-based, and narrow judicial review on decisions related to applications.

Y

N

N

N

N

Create parity between nicotine and nicotine analog in statute.

  • Amend the definition of "tobacco product" to include nicotine analogs, and thus establish FDA jurisdiction over such products.

Y

N

N

 

 

Modernize the tobacco user fees framework to apply to all regulated tobacco products.

  • Authorize FDA to assess and collect user fees from each manufacturer and importer of any products subject to Chapter 9 of the FD&C Act; increase the current limitation on total tobacco user fee collections by $114 million; and index all future collections to inflation.

N

N

Y

Y

Y

Request improved hiring authority for FDA's Center for Tobacco Products.

  • Extend the agile hiring authorities and salary flexibility of the 21st Century Cures Act for CTP to improve its ability to recruit, hire, and retain personnel.

N

N

Y

N

N

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