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 |
FY26 Budget |
FY25 Budget |
FY24 Budget |
FY21 Budget |
|
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.
|
Y |
N |
N |
N |
N |
|
Create an additional abbreviated licensure pathway for biological products.
|
Y |
N |
N |
N |
N |
|
Permanently authorize the rare pediatric disease priority review voucher program and related user fees.
|
Y |
N |
N |
N |
N |
Transparency and Review Process
|
Legislative Proposals |
FY27 Budget |
FY26 Budget |
FY25 Budget |
FY24 Budget |
FY21 Budget |
|
Allow disclosure of certain information in complete response letters.
|
Y |
N |
N |
N |
N |
|
Increase agency flexibility regarding the convening of advisory committees and the composition of such committees.
|
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.
|
Y |
N |
N |
N |
N |
Biosimilars and Generics
|
Legislative Proposals |
FY27 Budget |
FY26 Budget |
FY25 Budget |
FY24 Budget |
FY21 Budget |
|
Clarify when patent information must be submitted for a 30-month stay to be available.
|
Y |
N |
N |
N |
N |
|
Allow companies manufacturing generic medications domestically to file Paragraph IV certifications earlier, giving exclusivity rights to US manufacturers.
|
Y |
N |
N |
N |
N |
|
Eliminate the statutory distinction between the approval standard for biosimilar and interchangeable biosimilar products.
|
Y |
Y |
Y |
N |
N |
|
Explicitly address generic drug-device combination products.
|
Y |
N |
Y |
Y |
N |
|
Amend three-year new clinical investigation exclusivity.
|
N |
N |
Y |
N |
N |
|
Create a safe harbor for "skinny labeling."
|
N |
N |
Y |
Y |
N |
|
Amend the 180-day forfeiture provision addressing failure to market.
|
N |
N |
Y |
Y |
N |
|
Require full ingredient disclosure for drugs to promote generic competition.
|
N/A (became law) |
N |
Y |
Y |
N |
Postmarket Medical Product Authorities
|
Legislative Proposals |
FY27 Budget |
FY26 Budget |
FY25 Budget |
FY24 Budget |
FY21 Budget |
|
Holding firms accountable for using misleading advertising to drive profits at the expense of consumers.
|
Y |
N |
N |
N |
N |
|
Postapproval quality updates.
|
Y |
N |
N |
N |
Y |
|
Modernizing the requirements in BPCA and PREA for agency review of pediatric postmarket safety reporting.
|
Y |
N |
N |
N |
N |
|
Mutual recognition authority for bioresearch monitoring inspection.
|
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.
|
Y |
N |
N |
N |
N |
|
Clarify FDA's enforcement authority regarding manufacturing changes to approved drugs and biological products.
|
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.
|
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.
|
Y |
N |
Y |
N |
N |
|
Require destruction of imported products that pose a significant public health risk.
|
Y |
Y |
Y |
Y |
N |
|
Require site master files for drug manufacturing facilities.
|
N |
N |
Y |
Y |
N |
|
Expansion of FDA tools to provide oversight of FDA-regulated products.
|
N |
N |
Y |
Y |
N |
|
Expanding information disclosure authorities with states.
|
N |
N |
Y |
Y |
N |
|
Evaluation of non-application drug manufacturers before marketing.
|
N |
N |
Y |
Y |
N |
|
Streamlining the collection process for FSMA reinspection and recall fees.
|
N |
N |
Y |
N |
N |
|
Require public health data reporting authority to utilize postmarket health information.
|
N |
N |
Y |
N |
N |
Drug Shortages and Preparedness
|
Legislative Proposals |
FY27 Budget |
FY26 Budget |
FY25 Budget |
FY24 Budget |
FY21 Budget |
|
Enhanced drug manufacturing amount reporting information.
|
Y (similar to a proposal noted above) |
Y |
Y |
Y |
N |
|
Lengthen expiration dates to mitigate critical drug shortages.
|
N |
N |
Y |
Y |
Y |
|
Expand FDA's mandatory recall authority to cover all human and animal drugs.
|
N |
N |
Y |
Y |
N |
|
Require drug manufacturers to notify FDA of an increase in demand.
|
N |
N |
Y |
Y |
N |
|
Require labeling to include the original manufacturer and supply chain information.
|
N |
Y |
Y |
Y |
N |
Medical Devices
|
Legislative Proposals |
FY27 Budget |
FY26 Budget |
FY25 Budget |
FY24 Budget |
FY21 Budget |
|
Remove the temporal limitation on FDA's medical device shortages authorities and require manufacturers to maintain and share risk management plans.
|
N |
N |
Y |
Y |
Y |
|
Disrupt the flow of problematic imported medical devices.
|
Y |
Y |
N |
N |
N |
|
Establishing a regulatory framework for digital health medical devices.
|
N |
N |
N |
N |
Y |
Food and Dietary Supplements
|
Legislative Proposals |
FY27 Budget |
FY26 Budget |
FY25 Budget |
FY24 Budget |
FY21 Budget |
|
Strengthen oversight of critical foods and other foods to better protect infants and children.
|
Y |
N |
Y |
Y |
N |
|
Ensure FDA access to industry data to strengthen food chemical safety.
|
Y |
N |
N |
N |
N |
|
Collect foreign food facility registration fees.
|
Y |
N |
N |
N |
N |
|
Share food safety information with state, local, tribal, and territorial authorities.
|
Y |
N |
N |
N |
N |
|
Prevent food shortages, including critical foods.
|
N |
N |
Y |
Y |
N |
|
Modernize the Dietary Supplement Health and Education Act (DSHEA).
|
N |
N |
Y |
Y |
Y |
Animal Drugs
|
Legislative Proposals |
FY27 Budget |
FY26 Budget |
FY25 Budget |
FY24 Budget |
FY21 Budget |
|
Enhance availability of generic animal drugs.
|
N |
N |
Y |
Y |
Y |
|
Provide a structured and tiered risk-based framework for biologic products for animals subject to FDA regulation.
|
N |
N |
Y |
Y |
N |
|
Regulate certain articles as zootechnical animal food substances.
|
N |
N |
Y |
N |
N |
|
Enhance postmarket safety of animal drugs.
|
N |
N |
Y |
Y |
N |
|
Prevent animal drug diversion and misuse.
|
N |
N |
Y |
N |
N |
|
Change in agency regulatory oversight responsibility for certain new animal drug products.
|
N |
N |
Y |
Y |
Y |
Tobacco
|
Legislative Proposals |
FY27 Budget |
FY26 Budget |
FY25 Budget |
FY24 Budget |
FY21 Budget |
|
Strengthen enforcement against importation of unauthorized ENDS and other illegal tobacco products.
|
Y |
N |
N |
N |
N |
|
Create parity between nicotine and nicotine analog in statute.
|
Y |
N |
N |
|
|
|
Modernize the tobacco user fees framework to apply to all regulated tobacco products.
|
N |
N |
Y |
Y |
Y |
|
Request improved hiring authority for FDA's Center for Tobacco Products.
|
N |
N |
Y |
N |
N |