[Senate Hearing 118-629]
[From the U.S. Government Publishing Office]







                                                        S. Hrg. 118-629
 
   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
          RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 2025

.=======================================================================


                                HEARINGS

                                before a

                          SUBCOMMITTEE OF THE

            COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             SECOND SESSION

                                   on

                           H.R. 9027/S. 4690

 AN ACT MAKING APPROPRIATIONS FOR AGRICULTURE, RURAL DEVELOPMENT, FOOD 
   AND DRUG ADMINISTRATION, AND RELATED AGENCIES FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 2025, AND FOR OTHER PURPOSES

                               __________

                       Department of Agriculture
 Department of Health and Human Services: Food and Drug Administration

                               __________

         Printed for the use of the Committee on Appropriations
         
       GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT
  
         
         


       Available via the World Wide Web: https://www.govinfo.gov

                               __________
                               
                               
                           ______

             U.S. GOVERNMENT PUBLISHING OFFICE 
  55-287 PDF         WASHINGTON : 2025
                        
                               
                               
                               
                               
                      COMMITTEE ON APPROPRIATIONS

                   PATTY MURRAY, Washington, Chairman
RICHARD J. DURBIN, Illinois          SUSAN M. COLLINS, Maine, Vice 
JACK REED, Rhode Island                  Chairman
JON TESTER, Montana                  MITCH McCONNELL, Kentucky
JEANNE SHAHEEN, New Hampshire        LISA MURKOWSKI, Alaska
JEFF MERKLEY, Oregon                 LINDSEY GRAHAM, South Carolina
CHRISTOPHER A. COONS, Delaware       JERRY MORAN, Kansas
BRIAN SCHATZ, Hawaii                 JOHN HOEVEN, North Dakota
TAMMY BALDWIN, Wisconsin             JOHN BOOZMAN, Arkansas
CHRISTOPHER MURPHY, Connecticut      SHELLEY MOORE CAPITO, West 
JOE MANCHIN, West Virginia               Virginia
CHRIS VAN HOLLEN, Maryland           JOHN KENNEDY, Louisiana
MARTIN HEINRICH, New Mexico          CINDY HYDE-SMITH, Mississippi
GARY PETERS, Michigan                BILL HAGERTY, Tennessee
KYRSTEN SINEMA, Arizona              KATIE BRITT, Alabama
                                     MARCO RUBIO, Florida
                                     DEB FISCHER, Nebraska

                      Evan Schatz, Staff Director
              Elizabeth McDonnell, Minority Staff Director
                                 ------                                

     Subcommittee on Agriculture, Rural Development, Food and Drug 
                  Administration, and Related Agencies

                 MARTIN HEINRICH, New Mexico, Chairman
JON TESTER, Montana                  JOHN HOEVEN, North Dakota, Ranking
JEFF MERKLEY, Oregon                 MITCH McCONNELL, Kentucky
TAMMY BALDWIN, Wisconsin             SUSAN M. COLLINS, Maine (ex 
JOE MANCHIN, West Virginia               officio)
GARY PETERS, Michigan                JERRY MORAN, Kansas
KYRSTEN SINEMA, Arizona              CINDY HYDE-SMITH, Mississippi
                                     DEB FISCHER, Nebraska

                           Professional Staff

                             Dianne Nellor
                           Rachel Erlebacher
                            Hannah Chauvin 
                             Angela Caalim

                        Morgan Ulmer (Minority)
                       Daniel Mencher (Minority)
                         Alex Shultz (Minority)
                            C O N T E N T S

                              ----------                              

                                hearings

                        Tuesday, April 16, 2024

                                                                   Page

Department of Agriculture........................................     1

                         Wednesday, May 8, 2024

Department of Health and Human Services: Food and Drug 
  Administration.................................................    31

                              back matter

List of Witnesses, Communications, and Prepared Statements.......    93

Subject Index:

    Department of Agriculture....................................    95

    Department of Health and Human Services: Food and Drug 
      Administration.............................................    95


   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
          RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 2025

                              ----------                              


                        TUESDAY, APRIL 16, 2024

                                       U.S. Senate,
           Subcommittee of the Committee on Appropriations,
                                                    Washington, DC.
    The subcommittee met, pursuant to notice, at 10:03 a.m. in 
Room SR-124, Dirksen Senate Office Building, Hon. Martin 
Heinrich (chairman) presiding.
    Present: Senators Heinrich, Manchin, Hoeven, Moran, Hyde-
Smith, and Fischer.

                       DEPARTMENT OF AGRICULTURE

STATEMENT OF HON. TOM VILSACK, SECRETARY
ACCOMPANIED BY:
        MR. CHRIS NELSON, ASSOCIATE BUDGET DIRECTOR


              opening statement of senator martin heinrich


    Senator Heinrich. The Agricultural Appropriations 
subcommittee is now called to order.
    And I would like to begin by welcoming Secretary Vilsack. 
Joining the Secretary is Mr. Chris Nelson, Associate Budget 
Director for the Department of Agriculture.
    We welcome you both here today. And there is no doubt that 
fiscal year 2024 presented us with many challenges. We had to 
make some tough decisions, but I made sure we maintained our 
support for United States Department of Agriculture (USDA)'s 
vital programs that support American families, farmers, and 
producers in rural communities. I am not going to sugarcoat 
things; fiscal year 2025 will come with its own set of 
complications that we must navigate together, Mr. Secretary.
    While we are under austere spending constraints, this 
subcommittee must ensure that USDA has the resources that you 
need to fulfill your broad and critical mission. The programs 
and activities of this Department affect nearly every American, 
from farmers and rural communities to children and families who 
depend on programs like Special Supplemental Nutrition Program 
for Women and Children (WIC) and Supplemental Nutrition 
Assistance Program (SNAP), to put healthy and nutritious food 
on the table.
    The President's budget request for USDA totals $25.1 
billion, which is an increase of $2 billion. I am pleased that 
this budget request maintains our focus on providing tools to 
producers in rural communities to become part of our overall 
effort to solve climate change. Of particular importance to me 
is supporting our conservation programs to help producers be 
good stewards of our land. We know these programs are vital to 
managing lands and combating climate change.
    While the fiscal year 2024 Budget Bill did not provide all 
the funding for conservation that I would have liked, I am 
pleased to see the budget restore these important programs. And 
I will certainly do everything I can to ensure that 
conservation is a priority in the fiscal year 2025 Bill. And it 
calls for increased research and management of Per- and 
polyfluoroalkyl substances (PFAS) contamination in the 
agriculture sector, which has impacted many farmers in my home 
state of New Mexico. I look forward to discussing these 
initiatives and how this subcommittee can play a role in this 
critical issue.
    We also know that affordable housing has become a major 
challenge, especially in rural areas. This budget includes 
needed increases and innovative policy proposals to grow our 
affordable housing stock in rural communities. This is 
absolutely essential if we want to ensure that all Americans 
can access a safe and affordable place to call home.
    Another issue of great importance to both of us is ensuring 
all of our children can receive healthy and nutritious food. 
Without this, our children cannot learn effectively or thrive. 
I am proud we were able to fully fund WIC last year, and 
continue the fruit and vegetable voucher. This will continue to 
be a priority of mine as we start this fiscal year 2025 
process.
    It is clear that USDA has many ambitious goals, and I look 
forward to a robust discussion today. And I want to reiterate 
my support for drafting a bipartisan bill this year, and look 
forward to working with the Ranking Member, and all the members 
of this committee.
    And with that, I will turn to our ranking member, Senator 
Hoeven, for any statement that he has this morning.


                    statement of senator john hoeven


    Senator Hoeven. Thanks, Chairman. Thanks for your work. And 
also, I was pleased that we were able to move our 
Appropriations Bill for 2024 across the finish line. Albeit 6 
months late, but again I think it was a good work product, and 
I appreciate working with you on it. And obviously, we are 
already into 2025 as we need to be, but it is important we get 
it done. And I sure hope we can get it done, you know, closer 
to on time, but very important that we do get it done. And that 
takes a lot of bipartisan work.
    Mr. Secretary, thank you for being here today, thank you 
for your work, you know, for many years on behalf of 
Agriculture. It is incredibly important. And as they say, now 
more important than ever, appreciate you being here today.
    Now every single American benefits every single day from 
good farm policy. And think about it. And we need to talk about 
it because so many folks now don't have that nexus to the farm 
that they once had. Some of us come out of an Agriculture (AG) 
background, some of us are still involved--as a matter of fact, 
we have two cattle ranchers on our panel here, so they not only 
know it, they live it. But certainly, Jerry and I come from 
farm country, Kansas, and North Dakota, and Iowa.
    But a lot of people figure food comes from the grocery 
store, you know, and they don't have that nexus to the farmers 
and ranchers that so many of us once had. And so it is really 
important to understand that understand when we talk about 
these farm programs, we are talking about keeping a network of 
about 16 million people involved in agriculture across this 
country both directly and indirectly.
    A system that is primarily family farms and ranches, and 
when you look at so many industries that have developed this 
industry concentration to have that network is incredibly 
important in and of itself, but didn't think of what it means 
for every single American, highest quality, lowest cost food 
supply in the world, with Americans spending less of their 
disposable income on their food budget than any other developed 
country in the world. Good grief, we can't take that for 
granted.
    And I know you know that, Mr. Secretary, and that is why it 
is so important that as we talk about all these programs that 
are in the Farm Bill, that we are very mindful of the programs 
that that create that highest quality lowest cost food supply 
because it benefits all these other programs. When we talk 
about the nutrition program, or we talk about any of the other 
aspects of what has become, you know, the largest part of the 
Farm Bill, we have to understand that if we don't maintain that 
system of family, farms, and ranches, and it is food, fuel, and 
fiber now, as you well know, those costs are going to rise.
    That affects every other aspect, not only of all of the 
SNAP programs and everything else, it is going to cost more to 
provide, and you won't be able to provide as much if we don't 
sustain those farm programs that maintain that network of 
family, farms, and ranches. It is truly the engine in the car. 
And so we have to be mindful, as we look at this budget we have 
to keep that absolutely in mind, and right now as you know, 
again, our farmers and ranchers are facing real pressures they 
are seeing commodity prices that they get go down at the same 
time that their input costs are going up significantly.
    When they look at their fuel cost, and of course that fuel 
cost drives their fertilizer cost all their other inputs, 
right, chemical, spray, everything they do, they are getting 
squeezed this year, we are seeing a significant reduction in 
farm income this year. Which is why it is so important we 
maintain these programs.
    Along that line, you may have seen that I, along with other 
members of our AG Committee filed the Farmer Act which is 
designed to increase support for crop insurance, the number one 
risk management tool that our farmers and ranchers have. Also 
the AG research I mean it is just critically important, not 
only National Institute of Food and Agriculture (NIFA), the 
industry-based AG research, as well as the Agricultural 
Research Service (ARS), and they do a tremendous job continuing 
to support Farm Service Agency (FSA), incredibly important we 
have talked about that, that network out there, and having that 
face-to-face, you know, they can't do it all, they can do a lot 
on the Internet, but having that face-to-face is incredibly 
important.
    And you know, and we will talk about it here today, we are 
seeing real pressures on this budget in terms of things like 
WIC, and some of these other programs, increase of more than a 
$1 billion last year, I think a $700 million proposed increase 
this year. You know, we have got to talk about that a little 
bit, and determine how we are going to handle some of these 
costs, again while maintaining that safety net, that 
countercyclical safety net for our farmers and ranchers, in 
this great system of agriculture, so diverse.
    I mean every state in the country I think. Boozman has been 
on a challenge to find a state, if there is one, that isn't 
involved in agriculture, because he is going to every single 
state in the country. And he was up in Alaska, and I said well 
maybe, you know, maybe you finally found one up there that 
doesn't, but there is something about seaweed, or kelp, or 
something that they are doing up there. So I think it is safe 
to say all 50 states have agriculture.
   With that, again, thanks for being here today we appreciate it 
 Mr. Secretary. Thanks, Chairman,
    Senator Heinrich. Mr. Secretary.


                 summary statement of hon. tom vilsack


    Secretary Vilsack. Mr. Chairman, Senator Hoeven, and 
Members of the Committee, thank you very much for the 
opportunity to be here this morning.
    Each year the Department of Agriculture puts out a Rural 
Development at a Glance, an opportunity to take a look at the 
rural economy, and determine how things are going. This year's 
edition of that report has some positive news.
    It appears that rural employment is now down, now back to 
pre-pandemic levels; it appears that the poverty rate is 
significantly reduced, the unemployment rate is at an historic 
low in rural America, and in fact we have actually seen a 
reduction in counties that have been characterized as 
persistently poor. These are counties that have experienced a 
poverty rate of 20 percent or more for over 30 years. We had a 
net reduction of 29 counties out of 260 that have left that 
characterization.
    I raise this just simply to put a focus on the importance 
of investing in the Rural Partnership Network which is included 
in our budget. The chairman indicated the importance of 
housing, and making sure that we continue to support our 
housing programs. And I would also encourage you as you look at 
congressionally directed spending in the community facility 
program that you do so with an eye on those areas of persistent 
poverty so that we can continue the momentum that we have seen 
in the last couple of years.
    I appreciate Senator Hoeven's comments about research, 
clearly, we need to continue to look at ways in which we can 
focus on things like PFAS, Highly Pathogenic Avian Influenza 
(HBAI), and some of the other challenges that are faced out in 
the countryside, I appreciate the opportunity to acquaint the 
committee with the challenges of our ARS facilities, 
particularly in Beltsville, the need for significant investment 
there, and the importance of containing and retaining the 
flexibility within the Commodity Credit Corporation (CCC), in 
order to allow us to respond to situations that crop up from 
time to time.
    The most recent example, fertilizer. We are now in the 
process of funding at least 42 projects that are helping to 
tamp down the cost and increase in fertilizer. We should also 
point out that after 3 years of record farm income, the best 
farm income that we have had in at least 50 years, or maybe 
ever we, and as Senator Hoeven indicated, are seeing income 
rates that will likely be closer to historic norms.
    We are also seeing, as well, an aging nature of our farm 
population, and I bring to the attention of the committee 
concerns that I have about the loss of farms and the loss of 
farmland. In 1981, Secretary Bergland, as he was leaving 
office, expressed concern about the changes that we had made in 
the way in which we supported agriculture from a supply 
management system to a more market orientation. He expressed 
concerns that this might result in a significant reduction in 
farms and farmland. He was absolutely right.
    Since he issued that report, we have lost 544,970 farms. 
Now, to give you a sense of how many farms that is, that is all 
the farms that exist today in North Dakota, South Dakota, 
Minnesota, Wisconsin, Illinois, Iowa, Nebraska, Colorado, 
Missouri, and Oklahoma. We have lost 151 million acres of 
farmland. That is land that was in farming that is no longer in 
farming. That is the entire landmass of Florida, Georgia, North 
Carolina, South Carolina, Maryland, and a good part of 
Virginia.
    I don't think anybody on this Committee, and I don't think 
anybody in this Congress, in the Senate, or the House, or in 
this Federal Government believes that that is an appropriate 
direction for agriculture, which is why we have, for the first 
time, put together a comprehensive effort to provide support 
for small- and mid-sized farming operations, in addition to the 
extraordinarily important productive agriculture that Senator 
Hoeven alluded to.
    We are creating opportunities for value-added products 
through climate-smart agriculture. We are creating the 
opportunity for farmers to generate additional income by the 
sale, if you will, of the environmental results that only 
farmers can obtain because they have the land that can 
sequester carbon. They have the operations that can reduce 
greenhouse gas emissions below net zero, and they have the 
opportunity to participate in ecosystem service markets, a new 
stream of income for farm families.
    They have the opportunity to convert agricultural waste 
into a wide variety of bioproducts, the most exciting of which 
is sustainable aviation fuel that I think we are going to see 
an explosion of over the course of the next several years, 
another income source, another commodity, if you will.
    We have the ability to take renewable energy, and not only 
reduce costs on the farm, but also utilize that renewable 
energy to create a new revenue stream for farmers as well, as 
they work with their elected co-op, as they work with local 
facilities to provide less expensive, renewably produced 
energy. Another commodity, if you will, another income source.
    And also sponsoring and supporting local and regional food 
systems, the ability to expand processing capacity owned and 
operated independently of the large processing facilities. We 
have done over close to 400 investments in expanded processing 
opportunities across the United States, additional investments 
at the state level, to shore up the supply chain, to create 
opportunities for non-meat and poultry processing as well. And 
the reason we do this is because when you go to the grocery 
store and you put a dollar on the counter, Senator Hoeven is 
absolutely right, it is the less expensive, as a percentage of 
income that we spend on food than anybody else in the world.
    But the reality is the farmer only gets anywhere from 15 to 
20 cents of that dollar. When you sell directly to your 
customer, as many farmers are beginning to do, they get 50 to 
75 cents of every food dollar. So it is an opportunity for us 
to expand the income base for small- and mid-size farming 
operations, to begin the process of slowing down, and 
ultimately reversing the loss of farms and farm families.
    I am excited about this budget because it does contain 
additional tools at FSA to provide assistance and help to 
farmers who might be struggling. We are looking at increasing 
the microloan limit, looking at ways in which we perhaps 
provide less experience requirements in order to access some of 
our larger loan programs, increasing the ownership loan limits 
so that we have access for small- and mid-size producers to 
expand their operation, more flexibility in the amount of down 
payment that they may be required to provide, and the way in 
which it is financed, and more opportunity to provide some 
degree of relief in the form of debt forgiveness, or loan 
servicing, and allowing a refinancing of debt.
    I look forward to the questions from this committee, but I 
think this is a pivotal time. Senator Hoeven mentioned the Farm 
Bill; obviously, we are anxious to work with the Congress to 
get that Farm Bill done. But I think it is going to be 
important for us to focus, in addition to productive 
agricultural--production agriculture, on agriculture that also 
benefits and increases income streams for small- and mid-sized 
farmers because that is important to rural America.
    [The statement follows:]
              Prepared Statement of Hon. Thomas J. Vilsack
    Thank you, Chair Heinrich, Ranking Member Hoeven, and distinguished 
members of this subcommittee, for the opportunity to come before you 
today to discuss the Administration's priorities for the Department of 
Agriculture (USDA) and to provide you an overview of the 2025 
President's Budget.
    USDA's work touches every community, and nearly every landscape, 
across the entire country. Since our founding, the ``People's 
Department'' has provided safety nets to farmers, nutrition assistance 
to some of our country's most vulnerable citizens, support for 
renewable clean energy, firefighters to keep our communities safe, food 
safety inspections-and much, much more. It is an honor to lead this 
department, and I am excited to share with you some of the progress we 
have made to support America's farmers and ranchers, create opportunity 
in rural areas, and improve USDA's processes and customer service.
    Through the FY 2025 Budget, the Biden-Harris Administration and 
USDA have embraced a path where the future of American agriculture is 
secure and where there is greater equity and economic opportunity for 
agricultural and rural communities. We are now seeing farm income 
mirroring the stronger economy that President Biden and his economic 
team have advanced coming out of the pandemic. Farm income over the 
2021-2023 period represented the highest level of farm income in the 
last 50 years. We saw that the bulk of that income has been driven by 
the market, namely high commodity prices and the three highest years on 
record for agricultural exports, and not by farm safety net payments. 
And while the first farm income forecast of 2024 indicates net farm 
income this year will return to prior levels that are slightly below 
these historic levels for farm income, this forecast underscores the 
critical importance of USDA's ongoing work to help foster prosperity 
for producers and the communities they love by supporting an economy 
that grows from the bottom up and the middle out, and by creating new 
market opportunities that promote competition in the marketplace. At 
the end of the day, a strong farm economy inarguably contributes to a 
strong rural economy and makes rural communities a more attractive 
place to live--and we are doing everything within our control to focus 
our efforts on enhancing economic resiliency.
    As we look forward to FY2025, USDA will continue to focus on 
policies that add value for farms of every shape and every size as well 
as ensuring the policies are designed for the real needs of rural 
America. This includes recognizing the undeniable challenges of climate 
change and addressing the need for greater equity in our food system. 
We will continue to draw strength from the USDA Equity Commission final 
recommendations\1\, because they are a roadmap for ensuring USDA lives 
up to its name as the People's Department for everyone. There is 
nothing more foundational to a country's security and stability than 
its food supply; an inclusive agriculture and rural life is necessary 
if we want to create more opportunity in this country.
---------------------------------------------------------------------------
    \1\ USDA Equity Commission. (2024). Final Report 2024: 
Recommendations made to the U.S. Department of Agriculture to Advance 
equity for all. https://www.usda.gov/equity- commission/reports
---------------------------------------------------------------------------
    The 2025 USDA President's Budget recognizes the investment Congress 
has made available through the American Rescue Plan Act (ARPA), 
Bipartisan Infrastructure Law (BIL), and Inflation Reduction Act (IRA). 
This investment has allowed USDA to create, not diminish, opportunities 
for rural communities as well as invest in farmers, ranchers, and small 
businesses. USDA is delivering on these investments, and the 2025 
Budget continues to confront challenges, rebuild the rural economy, and 
support a new, innovative approach to the future of agriculture. A 
strong agriculture sector is key to strong rural communities, 
supporting over 22 million people and 10 percent of jobs in the 
economy, providing access to essential services like housing, 
healthcare facilities, and fast reliable internet; it's how we ensure 
there's safe, nutritious, affordable food on the table for everyone, 
supporting the more than 10.2 percent of Americans that experience food 
insecurity\2\; it's how we support and protect forests, grasslands, and 
farms--nearly 50 percent of this nation's total land mass; and it's how 
we provide for the communities that depend on them. The proposals in 
this budget will address these challenges and spur new job creation and 
opportunities in rural America; support a stronger nutrition safety 
net; build resilience in the food supply chain and restore America's 
advantage in agriculture; and leverage USDA's expertise to address 
climate change.
---------------------------------------------------------------------------
    \2\ USDA, Economic Research Service using data from U.S. Department 
of Commerce, Bureau of the Census, 2021 Current Population Survey Food 
Security Supplement. https://www.ers.usda.gov/topics/food-nutrition-
assistance/food-security-in-the-u-s/key-statistics-graphics/
---------------------------------------------------------------------------
    The 2025 USDA President's Budget request totals $213.3 billion, of 
which $181.7 billion is mandatory funding and $31.6 billion is 
discretionary funding to continue advancing the vision to create an 
equitable and climate-smart food and agriculture economy that protects 
and improves the health, nutrition, and quality of life of all 
Americans.
                        rebuilding rural america
    The Biden-Harris Administration's historic investments in 
infrastructure and new market opportunities have provided USDA with a 
powerful set of tools for restructuring our food and agriculture 
economy so small- and mid-sized producers are able to access 
opportunities to maintain and grow, catalyzing strong rural economies 
where people have the opportunity and tools they need to build a good 
life in the communities they love.
    It has been said that Rural Development (RD) can build a town from 
the ground up. However, over the last decade, RD's portfolio has 
increased 85 percent, but its staffing levels decreased by 30 percent. 
Recruiting and retaining staff is a critical component in our ability 
to meet the growing priorities in areas that have a direct effect on 
our ability to be sustainable, relevant, and results- oriented in 
delivering much-needed programs and services across rural America. USDA 
is committed to ensuring we have sufficient levels of RD staff to 
deliver these vital programs by requesting $881 million for S&E.
    Affordable housing has been a long-standing problem for low-income 
residents in rural communities, one that is exacerbated by low energy 
efficiency of the aging housing stock which means higher costs to 
families. The 2025 Budget requests $1.25 billion for the Section 502 
Single Family Housing (SFH) Direct Loan program that will provide over 
5,000 low and very-low income rural residents the dream of home 
ownership. The Budget also provides $1.69 billion in budget authority 
for Rental Assistance (RA) to renew 270,158 existing contracts, 
ensuring that these very low income tenants can continue to live in 
decent, safe and affordable housing. In addition, the Budget continues 
to request the authority to decouple rental assistance from USDA 
financed properties to allow USDA financed properties the option to 
continue to offer affordable rents when projects reach loan maturity. 
For paid off properties that do not decouple, the Budget continues to 
include $20 million within the HUD Tenant Protection Vouchers, which 
provides a fully portable voucher for the tenant, reduces duplication 
across Federal programs, and allows USDA to focus more on its priority 
mission of preservation.
    Improved connectivity through broadband access means rural 
communities can offer robust business services, expand access to modern 
healthcare, and improve education. The Broadband ReConnect Program 
provides capital access for strengthening e-connectivity that broadens 
economic opportunities and job creation in rural America. Thanks to the 
President's Bipartisan Infrastructure Law, USDA has provided $2.26 
billion to deploy broadband to people living and working in rural areas 
across 35 States and Territories, which is expected to expand access to 
137,366 households. The Budget requests $112.4 million in budget 
authority for the Broadband ReConnect Program to provide service to 
about 56,000 households. In addition, the Budget continues to include 
$35 million for broadband grants to support new or improved broadband 
access in communities with populations of up to 20,000.
    Safe drinking water and sanitary waste disposal systems are key 
elements to achieving a high quality of life for rural residents. 
Across the country, there are millions of Americans that lack indoor 
plumbing and millions more that live in homes that still have poisonous 
lead pipes. The Budget supports nearly $1.4 billion in regular direct 
loans and $50 million in guaranteed loans to support nearly 450 direct 
and guaranteed loans for water and waste disposal facilities to provide 
safe and sanitary water services. Overall, the Budget requests $785 
million in budget authority, which supports a total program level of 
nearly $2.1 billion for the water and waste disposal program. Of $785 
million in budget authority, $639 million are for grant funding for 
water and waste disposal projects, including grants targeted to 
Colonias, Native Americans, and Alaska Native Villages.
    The Farm Service Agency (FSA) Farm Loan Programs provide an 
important safety net for producers, by providing a source of credit to 
producers who commercial lenders may be unwilling to serve. USDA is 
committed to ensuring that as we administer the Farm Loan Programs, we 
can provide targeted assistance based on need, reaching everyone who is 
eligible, and removing the bureaucratic burden on producers. The Budget 
is projected to support over 32,000 loans to farmers and ranchers by 
financing operating expenses and providing opportunities to acquire a 
farm or keep an existing one. Building on efforts begun in the 2024 
Budget to connect more producers with the financing they need for 
successful farm operations, the 2025 Budget continues to propose 
legislative changes to Farm Loan Programs to ensure more producers 
would be able to get the financial assistance they need to keep farming 
and keep the farm in the family. Specifically, the proposals will 1) 
authorize Direct Farm Ownership loans to be used to refinance debt; 2) 
make a technical correction to certain special program interest rate 
requirements; 3) require preferred lenders to obtain FSA approval prior 
to taking a foreclosure action; 4) expand the lifetime limitation on 
debt forgiveness from $300,000 to $600,000; 5) authorize future loans 
to those with previous debt forgiveness; 6) give the Secretary maximum 
flexibility for applicant eligibility for emergency loans; 7) increase 
the microloan limit from $50,000 to $100,000; 8) eliminate the number 
of years that a borrower can apply for Direct Operating Loan or Direct 
Farm Ownership loan; 9) revise beginning farmer definition to require 
individuals of an entity to be beginning farmers without regard to 
relationship; 10) reduce required farming experience for Direct Farm 
Ownership Loans from 3 years to 1 year, with a waiver of experience for 
those who have an established mentorship; 11) correct the historical 
linkage for Farm Ownership down payment direct loan limit to match the 
direct Farm Ownership loan limit; and 12) revise beginning farmer 
lending targets required ``to the extent practicable.'' This suite of 
changes expands access to farm loans to strengthen agriculture while 
remaining budget neutral.
    To improve equity in rural America, the Budget proposes $10 million 
to expand the Rural Partners Network (RPN) initiative, improve 
leveraging of USDA's extensive network of county-based offices, and 
continue to help people and communities in high poverty counties. 
Through RPN and collaboration with other USDA and Federal agencies, RD 
has been able to improve its connection with rural stakeholders. This 
work follows through a commitment the President made when he came to 
office--we must invest in America's heartland in a meaningful way. It 
is critical that we ensure that our rural and Tribal communities can 
benefit from Federal investments as the Biden-Harris Administration 
delivers unprecedented resources provided through ARPA, BIL, and IRA. 
We can only expand this innovative work of RPN into more rural 
communities and additional States if Congress builds on the progress 
made over the last year and provides additional funding for RPN.
                  supporting nutrition for the nation
    USDA's core nutrition programs are the most far-reaching, powerful 
tools available that ensure all Americans, regardless of race, 
ethnicity, or background, have access to healthy, affordable food. 
Across America, one in four individuals is served by one of USDA's 16 
nutrition assistance programs over the course of the year. The Budget 
makes strategic investments to advance nutrition security through 
education and evidence-based interventions, and to support the purchase 
of nutritious and local foods.
    We know that the Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC) drives better health for infants and more 
nutritious diets for children, and it is a key tool for addressing 
disparities in maternal and child health outcomes. WIC serves about 
half of all babies in the United States. The Budget includes $7.7 
billion for WIC in 2025 to serve nearly 7 million low- income women, 
infants, and children each month in 2025, up from 6.6 million in 2023. 
This funding request reflects the longstanding bipartisan commitment to 
serve all projected participants seeking WIC benefits. WIC 
participation rose rapidly in 2023 across all eligible categories--
women, children and infants and further growth is expected in 2025. The 
Food and Nutrition Service (FNS) is continuing to work to modernize the 
program through outreach, improving the shopping experience, 
modernizing technology and service delivery, expanding access to 
farmers' markets and investing in the workforce.
    The Supplemental Nutrition Assistance Program (SNAP) stretches the 
food budget for many low- income people and research shows that 
participation in SNAP reduces food insecurity and allows families to 
have healthier diets. The Budget requests $123.3 billion for SNAP, 
which will serve an estimated average of 41.9 million participants. The 
Budget also includes $95 million for The Emergency Food Assistance 
Program (TEFAP) administration to support soup kitchens and food banks 
and $242 million for the Food Distribution Program on Indian 
Reservations (FDPIR) to improve participant nutrition and provide 
culturally appropriate foods for an estimated average of 80,000 
participants.
    Child Nutrition programs, including National School Lunch Program 
(NSLP), the School Breakfast Program (SBP), the Summer Food Service 
Program, the Child and Adult Care Food Program (CACFP) Fresh Fruit and 
Vegetable Program, and Special Milk Program assist State and local 
governments and private non-profit organizations in ensuring that meals 
provided to children in schools and child and adult care programs meet 
their nutritional needs, foster healthy eating habits, and safeguard 
their health with a goal of reducing the number of overweight and obese 
children. Summer is perhaps the most challenging time of the year for 
children at risk of food insecurity because they lose access to daily 
school meals, and some face structural barriers to accessing summer 
meals through the traditional programs. To meet the nutritional needs 
of children during the summer, this Budget requests nearly $3.3 billion 
in funding to provide Summer EBT to the approximately 21.5 million 
children that will participate in 2025. In addition to Summer EBT, USDA 
administers a suite of child nutrition programs that provide 
reimbursement to State and local governments for nutritious meals and 
snacks served to children in schools, childcare institutions, summer 
sites, and after school care programs. The Budget also requests nearly 
$29 billion to serve a projected 5 billion lunches and snacks and 2.7 
billion breakfasts in schools, 1.9 billion meals in child and adult 
care food programs, and 281 million meals through the Summer Food 
Service Program. The increases will strengthen integrity controls, 
modernize food ordering and inventory management systems, and provide 
critical staffing to enhance FNS's ability to provide technical 
assistance and oversight of child nutrition programs.
                 creating more, new, and better markets
    USDA works to create more options for producers and consumers and 
improve the resiliency of our food supply chain. As we invest in new 
solutions, we must create new and better markets for all producers and 
consumers and promote a safe, healthy work environment for agricultural 
workers. USDA is working to transform the food system, from how food is 
produced to how it is purchased, in a fairer, more competitive, and 
more resilient system. These investments will benefit consumers, 
producers, and rural communities by providing more options, increasing 
access, and creating new, more, and better markets for small and mid-
sized producers. The success of American agriculture hinges on 
innovation and the development of new markets, both at home and abroad, 
to ensure everyone has access to affordable nutritious food.
    Despite record-breaking farm income in recent years, typically 
about 7 percent of U.S. farms receive 85 percent of overall farm 
income, which means 93 percent of our farms share only 15 percent of 
farm income. We also know that over half of farm households had 
negative farm income, and 84 percent of farm families obtain most of 
their income from off the farm. On top of this, farmers are receiving 
less of the food dollar today than ever before. It's obvious that the 
system needs to be revisited to find a way to create a system that 
benefits small and mid-sized farms, expands opportunity, and values 
their products.
    To do so, USDA is increasing market opportunities for producers to 
sell their products. We are strengthening local and regional food 
systems and providing producers with more options to market their 
products. The Budget invests over $383 million in supporting new supply 
chains and markets that uplift small and mid-sized farmers through 
programs such as the Local Agriculture Market Program, Farmers Market 
and Local Food Production, and Transportation and Market Development, 
through Agriculture and Food Research Initiative (AFRI) grants and the 
Gus Schumacher Nutrition Incentive Program at the National Institute of 
Food and Agriculture (NIFA), as well as through Farmers Market 
Nutrition Programs at FNS. Investments will also help strengthen supply 
chain resiliency by improving access to and encouraging consumption of 
locally grown foods, shortening the food supply chain by supporting 
direct farmer-to-consumer transactions.
    Last year marked the 10th anniversary of the Farm to School Grant 
Program at FNS, which has awarded more than 1,100 projects totaling 
more than $85 million and reaching more than 28 million students in 
nearly 63,000 schools. These grants play an important role in expanding 
USDA's farm to school efforts across the country and strengthening the 
school meal programs. Funded projects increase the amount of local 
foods served through child nutrition programs and help educate children 
about where their food comes from. These efforts make school meal 
programs more resilient in the face of recent supply chain disruptions 
by building connections within local communities while also creating 
healthier school food environments and improving student health 
behaviors. This program also allows producers, large or small, to have 
additional market opportunities in their own backyard and a chance for 
their commodities to nourish children in their community. The Budget 
requests $12 million in the Farm to School Grant funding in addition to 
$5 million in permanent funding to assist in making local food and 
agricultural education available to child nutrition program 
participants.
    The Budget supports investments to assist in transitioning away 
from fossil fuels while creating manufacturing jobs across rural 
America by creating market opportunities in the bio-based economy. The 
Sustainable Aviation Fuel (SAF) Grand Challenge, in partnership with 
Department of Energy and Department of Transportation, is meeting the 
demand to reduce cost, enhance sustainability, and expand SAF 
production which currently has a high demand. USDA is committed to 
continuing investments and building expertise in sustainable crop and 
other biomass production system and supply chains; investing in 
biomanufacturing capability, workforce development, and community and 
individual education; and providing outreach and technology transfer to 
producer's processors. USDA ensures farmers, foresters, small 
businesses, and rural economies benefit from these opportunities with 
attention to cost, quality, and quantity of agricultural-based 
feedstock for producing SAF.
    One way USDA promotes the creation and expansion of rural 
businesses, by providing additional access to capital, which helps to 
diversify the rural economy, is through the B&I Guaranteed Loan 
Program. The Budget supports $2.3 billion in Business and Industry 
(B&I) loan guarantees, which bolsters the availability of private 
credit by guaranteeing loans made by lenders to rural businesses. At 
the average loan level of $7 million, this request will support more 
than 300 loans. This program improves the economic health of rural 
communities by increasing access to business capital through loan 
guarantees that enable commercial lenders to provide affordable 
financing for businesses in eligible rural areas.
                        research and innovation
    This pivotal moment calls for additional investment in research and 
innovation that influence every program we implement at USDA. 
Agricultural research has a return on investment of $17 for every $1 
invested. Between 1948 and 2019, total agricultural output in the 
United States grew by 142 percent. This rise was not due to increases 
in agricultural land or labor; in fact, both inputs declined over the 
period. The productivity stemmed from the adoption of a whole suite of 
innovations and technology transfer in crop and livestock breeding, 
nutrient use, pest management, farm practices, and farm equipment and 
structures. These innovations are the fruits of publicly funded 
agricultural research and development that often have a less-told 
story, but we live and reap the benefits of these investments every 
single day. Production agriculture requires constant innovation and 
adaptation as farmers and ranchers pursue climate-smart solutions to 
extreme weather, rural businesses seek new markets, and underserved 
communities seek trusted partners to tackle systemic concerns.
    The Budget proposes a $3.8 billion investment in our research, 
education, and economics programs. The Budget includes discretionary 
funding of $1.7 billion for NIFA of which $475 million is for the 
Agriculture and Food Research Initiative (AFRI). Demand for AFRI's 
competitive funds grows annually and the awards focus on promoting 
enhanced profitability and productivity in U.S. agriculture, food and 
nutrition security, and boosting rural prosperity through a circular 
economy with support for clean energy technologies, climate-smart 
agriculture and forestry, and education and workforce development. An 
additional $1.8 billion for the Agricultural Research Service (ARS) 
includes increases from 2023 of $17 million in support of the Cancer 
Moonshot, $13 million for the operations and maintenance of the new 
National Bio and Agro-Defense Facility, $13 million for climate science 
and monitoring greenhouse gas emissions from agriculture, and $17 
million for additional high priority investments. These funds enable 
ARS to find solutions to agricultural problems that affect Americans 
every day from field to table. This is done through the delivery of 
cutting-edge, scientific tools and innovative solutions for American 
farmers, producers, industry, and communities to support the 
nourishment and well-being of all people; sustain our Nation's 
agroecosystems and natural resources; and ensure the economic 
competitiveness and excellence of our agriculture.
    Science and research are our best defenses to protect our resources 
against the climate crisis. The changes in our environment have allowed 
invasive plants, pests, and diseases to move around the world more 
easily and become established in new areas. Without the tools and 
sufficient resources to protect ourselves against invasive species and 
safeguard the health, welfare, and value of American agriculture and 
natural resources, our farmers and our economy will suffer.
                      tackling the climate crisis
    Producers and land managers across the country are experiencing 
real and increasing threats from climate change that have serious 
implications-not just for farmers, ranchers, and forest landowners- but 
also for surrounding communities and all Americans. In 2022, nearly 80 
percent of the western region experienced extreme drought, wildfires 
burned over 7.6 million acres of our forestland, and communities across 
the country are dealing with the impacts of severe flooding and record 
snow fall exacerbated by climate change. Agriculture has a critical 
role in delivering climate change solutions and our Nations farmers, 
ranchers, and foresters are already leading the way through the 
adoption of voluntary and farmer friendly incentive-based climate-smart 
agricultural and forestry practices.
    Through the Conservation Technical Assistance (CTA) Program, the 
Natural Resources Conservation Service (NRCS) provides landowners and 
managers with the knowledge and tools they need to develop conservation 
plans to implement specific conservation practices needed to improve 
farm operations and conserve, restore and maintain the natural 
resources on their lands. The Budget requests $985 million for Private 
Lands Conservation Operation, of which almost $870 million is for the 
CTA program. An additional $30 million in CTA funding will be used to 
continue Equity Conservation Cooperative Agreements, which support 
historically underserved farmers and ranchers with climate-smart 
agriculture and forestry, will bring in additional new customers to 
work with NRCS. In 2022, NRCS offered $50 million in funding for Equity 
Conservation Cooperative Agreements. Two-hundred fifty applications 
were received requesting $202 million, of which 117 agreements were 
funded for $49 million. In 2023, NRCS offered $70 million in funding. 
Three hundred applications were received requesting $210 million, of 
which 139 were selected for funding for $69.2 million.
    The Budget supports the USDA Climate Hubs, a cross departmental 
effort to provide technical assistance in tackling the climate crisis, 
expanding USDA's ability to develop and deliver science- based, region-
specific information and technologies. The Budget requests an 
additional $14 million from 2023 for the Climate Hubs to support the 
adoption of climate-smart practices. Investments will assist farmers, 
ranchers, and foresters make region specific climate-informed decisions 
and provide technical assistance to implement those decisions.
        rebuilding usda through diversity, equity, and inclusion
    Building a better USDA means bringing people of all backgrounds and 
lived experiences to be a part of a healthy, safe, and inclusive 
workplace. This includes ensuring we are recruiting the best and the 
brightest across our great country, and investing in our employees 
through recognition, wellness programs, and support to our employees. 
Building a better America is about ensuring all have equal access to 
USDA opportunities, which demands that we design and implement our 
policies and programs with our diverse customers at the center. The 
2025 Budget focuses on building a USDA that is a model employer and 
great place to work, proposes investments that remove barriers to 
accessing USDA programs, and addresses historic gaps with respect to 
who benefits from USDA programming.
    It's an honor and a privilege to have the dedicated and talented 
staff of over 100,000 employees supporting USDA. However, the historic 
lack of investment throughout the Department over the years has 
resulted in a decline in staffing that we still struggle to recover 
from and has meant that we have not had the necessary resources to 
modernize critical IT systems or make other improvements to the way we 
do business here in USDA in support of rural Americans. USDA 
appreciates that Congress broadened the purpose of the Department's 
Non-recurring Expense Fund to address both facilities and information 
technology needs. For IT systems alone, USDA is projecting a FY 2025 
need of at least $190 million for modernization of our platforms to 
best serve the public accessing USDA programs. As USDA reimagines and 
transforms the way it delivers its mission and services to the American 
public, it must also invest in IT modernization to address 
vulnerabilities in government legacy systems to ensure those services 
are provided in an effective, efficient, and secure manner.
    USDA is committed to not only hiring, developing, and advancing a 
workforce that truly reflects America's rich and diverse 
characteristics, but also to creating an inclusive workplace 
environment so that everyone can rise to their highest potential and 
flourish in supporting our mission. We are committed to making USDA the 
best place to work so that we can attract and train the best and the 
brightest in the field of agriculture. The need for growing the next 
generation of professionals is timely and important and this funding is 
aimed at attracting, inspiring, and retaining diverse and talented 
students at eligible minority-serving institutions for careers in food, 
agriculture, and related disciplines, with an emphasis on Federal 
Government sector employment. The Budget requests $365 million directly 
invested in Minority Serving Institution (MSI) programs to fight 
against the historic inequity in access to higher education. 
Partnerships with MSI programs support capacity building initiatives, 
education, and pathways to employment for students and faculty and help 
develop a strong pipeline of talented individuals for USDA and USDA 
partner jobs. These capacity-building funds will bolster the impact of 
the recently announced Inflation Reduction Act program ``From Learning 
to Leading: Cultivating the Next Generation of Diverse Food and 
Agriculture Professionals (NextGen)''. This historic $262.5 million 
investment supports 33 projects across 24 States and competitively 
established six HBCUs as NextGen lead institutions. NextGen projects 
are led by HBCUs, TCUs, Alaska Native-serving Institutions and Native 
Hawaiian-serving Institutions, HSIs, or institutions of higher 
education located in the Insular Areas. Working with 60+ MSI partners, 
projects will provide training and support to more than 20,000 future 
food and agricultural leaders. These investments in future agricultural 
leaders will help USDA attract the best and brightest to face the 
growing challenges of the agricultural economy.
                               conclusion
    If we are going to create an agriculture system that works for the 
many and the most, I believe the answer is a holistic approach. Not one 
focused just on bushels per acre, but one that also measures success as 
rural families being able to pay their bills, preserving our lands, and 
making their communities a place our children and grandchildren can 
call home. Producers of all kinds should be able to make a living and 
support their families through farming, not just those with the biggest 
operations. As decision makers in USDA and Congress, we should use the 
market, climate-based tools, and food systems to create new income 
opportunities and value for producers and rural communities. This 
budget is not a wish list; rather, it is a to do list to fulfill the 
items that Congress and USDA have been talking about fixing for 
decades. It is a plan for what we need to do to continue to get USDA 
back on track and to help the U.S. outcompete the rest of the world. 
USDA needs the support of this subcommittee and of Congress to make the 
much-needed investments called for in the President's FY 2025 Budget. I 
look forward to working with this subcommittee and to answering any 
questions you may have about our budget proposals.

    Senator Heinrich. Mr. Secretary, I appreciate your response 
to my recent letter regarding ready-to-use therapeutic foods 
(RUTF). Can you talk a little bit about what more the 
Department can do to provide RUTFs as an option within the food 
aid toolbox? What authorities you may need, and talk a little 
bit about the incredible impact that ready-to-use therapeutic 
foods can have on malnourished children?

                      READY TO USE THERAPUIC FOOD

    Secretary Vilsack. I think, Mr. Chairman, the distinction 
is between trying to address malnutrition as it exists today in 
an emergency circumstance versus a longer-term commitment to 
increase food security in nations that are challenged. Our 
programs are primarily through the Food for Peace Program. Our 
progress programs are primarily focused on the latter. USAID's 
efforts are focused primarily on the former. So we work 
collaboratively with USAID to ensure that our resources are 
utilized in a proper way.
    The use of CCC, in this particular circumstance, provided 
us an opportunity to double down on the latter. But because of 
the nature of the charter, the new CCC charter, we were not 
able to, essentially, utilize any of those resources for the 
packets. We are advised that because of what we are doing with 
the CCC, we are creating greater flexibility within USAID, and 
I would suspect and anticipate that in the very near future, 
you are going to see a significant commitment from USAID on the 
use of those packets.
    So it is a combination, it is a partnership. I mean, I 
think you could look at changing the CCC, but I think it is 
probably better to adequately finance the Food for Peace and 
Food for Progress programs and encourage USDA and USAID to 
continue working collaboratively together.

                            BISON PRODUCTION

    Senator Heinrich. Can you talk a little bit, give us a 
little bit of an update on implementation of the two bison 
production-related provisions that were in the fiscal year 24 
Bill related both to inspection fees for processing and then 
also production and marketing?
    Secretary Vilsack. As Senator Hoeven pointed out, that bill 
just passed recently, and so we are in the process of taking a 
look at trying to better define what a Native American 
establishment and institution is, so we know where that 
resource and that assistance needs to be directed. We are 
engaged in consultations this week and next week with tribes in 
an effort to discuss self-determination as it relates to 
processing, and as you know, we are investing resources under 
the American Rescue Plan (ARP) in expanded processing capacity.
    So I think you are going to continue to see us work 
collaboratively with tribes. I think you are going to continue 
to see us work in a way that will dovetail and parallel what we 
do with states where we basically try, I think we can, to pick 
up roughly 50 percent of the cost. I think you are going to see 
that kind of arrangement discussed with the tribes, and 
hopefully we reach a consensus on steps forward.
    Senator Heinrich. Thank you. I was glad to see the Western 
Water Framework announced by Natural Resources Conservation 
Service (NRCS) last year. This as a foundation to build on, how 
is USDA planning a sort of all-of-department approach to tackle 
the western drought resilience challenges that we have from, 
you know, large-scale upstream watershed restoration, all the 
way down to small-scale on-the-farm kind of measures?

                       WESTERN DROUGHT RESILENCE

    Secretary Vilsack. The Western Water and Working Lands 
Initiative is an initiative focused on six strategies, thirteen 
different ways in which we approach preserving groundwater, 
surface water, focused on preserving rangeland, pastureland, 
agricultural productivity, and the tools to do so.
    In fiscal year 2023, we invested $1.9 billion across a 
variety of programs within USDA. You saw aggressive use of 
Environmental Quality Incentives Program, Conservation 
Stewardship Program, Regional Conservation Partnership Program 
(EQIP), (CSP), (RCPP) within the NRCS. You saw research being 
conducted at ARS as well as grants in NIFA. So it is an 
extensive effort on our part to try to address and to provide 
tools for farmers, ranchers, and producers to be able to 
address concerted issues.
    And I think we work collaboratively with our partners in 
the Federal Government, in an interagency effort focused on 
everything from storage to more conservation and better 
utilization of the scarce water resources we have.
    Senator Heinrich. This will be my last question for you, 
Mr. Secretary, and then I will turn it over to my colleague. 
But we know affordable housing has become just such an enormous 
challenge across my state and many states across the country. 
Can you talk a little bit about how USDA is planning to 
implement the decoupling of rental assistance from the 
multifamily loan program that was included in the fiscal year 
2024 bill?

                           RENTAL ASSISTANCE

    Secretary Vilsack. First of all, I express appreciation for 
the Senate and the House providing us this tool. We have 
identified approximately 1,700 units between this year and next 
fiscal year that will become available that could potentially 
be incorporated in that program. I think you will see roughly 
600 units this year, and 1,100 units, potentially, next year 
depending upon what decisions you make in reference to a 
decoupling. You have instructed us up to 1,000 units. We might 
suggest maybe going to 1,700.
    Senator Heinrich. Great, fantastic. Senator Hoeven.
    Senator Hoeven. Secretary, I want to pick up on, you know, 
the loss of farms concerns me greatly, that you referenced and 
actually it is more than I realized. You and I have talked 
about this before, but you brought it home pretty dramatically 
in your opening comments. What is most effective, in your 
opinion, to stem that tide?

                            LOSS OF FARMLAND

    Secretary Vilsack. I think it is a combination. Senator, I 
think first and foremost, you obviously have to have a safety 
net to try to keep people on the farm, which goes to the loan 
programs, it goes to crop insurance and the risk management 
tools that you know so much about. But I think it is also 
expanding markets.
    I think it is important for these small- and mid-size 
producers not to have a single commodity-based income stream. I 
think they have to have a stream that is climate-related. I 
think they have to have a stream that is ecosystem service-
related. I think we have to encourage more conversion of 
agricultural waste into a variety of products instead of over-
application in many parts of the country.
    I think we need to continue to strengthen our local and 
regional food system, because they get a better bang for the 
buck. I think we need to continue to look at concentration and 
do what we can to provide more independently owned, maybe 
farmer-owned processing. So it is a combination of safety net 
and markets.
    Senator Hoeven. So I agree, we work on all those things in 
Iowa, and North Dakota, Kansas, across the country. So I agree 
with those. In terms of crop insurance, the countercyclical 
safety net crop insurance, are there some things that ought to 
be included in those things as we look at the Farm Bill that 
you think would go at this problem?

                             CROP INSURANCE

    Secretary Vilsack. Well, I think we need to continue to 
look for ways in which we can expand coverage, more products, 
more crops basically being covered. There is still not 
everything that is grown and raised in this country has the 
same level or opportunity. We have had 12 new products and 50 
modifications to existing policies. I think we need to do more 
of that.
    I think we do need to take--and you know there is a 
conflicting set of messages coming out of this Capitol on crop 
insurance, there is some who in your circumstances suggesting 
an increase in commitment from the Federal Government so that 
the farmers have to pay a little bit less for more coverage. 
Then there are some folks on the House side who are suggesting 
significant reductions in that safety net. I think we need 
perhaps some consistency in the approach here, would be 
helpful.
    Senator Hoeven. Well, we prefer our approach.
    Secretary Vilsack. Well, I am sure you do, but there are 
166 Members of the House Republican Caucus that feel that crop 
insurance should be cut.
    Senator Hoeven. Well, it seems to me as we look at this 
Farm Bill, crop insurance, countercyclical safety net, access 
to credit, beginning farmer, those kind of programs, some of 
the livestock programs, we actually want to make more 
consistent and dependable, whether it is, you know, livestock 
forage, livestock indemnity, emergency livestock assistance, 
where you know, like the on the farm side it is more 
dependable, these ranchers, particularly the smaller ranchers 
the one starting up.
    I think as we look at the Farm Bill, those things, we have 
to take into account, those numbers that you just laid out, and 
think about our programs and make sure we are getting the job 
done.
    Secretary Vilsack. You do, but I think if you only do 
that----
    Senator Hoeven. Not only that, yeah.
    Secretary Vilsack. If that is all you do, that is not--that 
is halfway.
    Senator Hoeven. Right, which is why I asked you--we have 
always had a surplus in AG trade, we have a deficit right now 
in AG trade, back to your comment about markets, right?
    Secretary Vilsack. Well, there is a reason for that.
    Senator Hoeven. High dollar is one.

                           AGRICULTURAL TRADE

    Secretary Vilsack. Well, high dollar, strong dollar no 
doubt, the economy worldwide that is not as strong as the U.S. 
economy, however, this is an interesting statistic, maybe it is 
just coincidental, our trade deficit for the first 3 months of 
fiscal year 2024 was $6 billion, bought $6 billion more than we 
sold. China purchased $6 billion less.
    Senator Hoeven. I knew that is where you were going, yeah, 
coincidence no. Right?
    Secretary Vilsack. Well, look, if you continually rap your 
number one customer it is not surprising that your number one 
customer would send you a signal about, hey, we are paying 
attention. So what has to happen I think is a much more nuanced 
and sophisticated conversation about China.
    You know you mentioned family farms, what is at greater 
risk, Chinese ownership of farmland, or the fact that Wall 
Street and investment banks own a third of the largest farm 
operations in the country, 50,000 farms or so, owned by 
investors not by farm families; which is a greater risk?
    Senator Hoeven. Let us say we do on the trade front but, 
again, we do on the trade, I think there is both trade 
barriers, and non-trade barriers, that we have got to knock 
down, and we have got to be tougher there. What do we do?
    Secretary Vilsack. I can give you a list of $20 million of 
trade wins we have had, they are doubles and singles, they are 
not home runs, but they are the cumulative impact and effect is 
important. The Regional Agricultural Promotion Program (RAPP) 
program that we initiated at the request of Senator Boozman and 
Senator Stabenow, is important because it expands our 
opportunity to diversify, more people, more presence, more 
promotion, and more opportunities for trade missions, you are 
going to see that. More emphasis in Africa, and Southeast Asia, 
moving away from the overreliance on China, I think that is an 
important consideration.
    Senator Hoeven. Okay. Well, I have used my time up. I will 
come back with some other questions in the next round. Thanks, 
Mr. Chairman.
    Senator Heinrich. Senator Fischer. That is what you get for 
showing up on time.
    Senator Fischer. Well, my colleagues here, I would love to 
bump them. Senator Moran followed me, and before the gavel.
    Senator Heinrich. Senator Moran.
    Senator Fischer. So now you owe me, Jerry.
    Senator Moran. So now, I didn't come out ahead on this 
deal.
    Secretary Vilsack, thank you. My expectation is that I need 
a couple of rounds for questions, so I am happy to take this 
beginning. First of all, I appreciate your leadership in 
agriculture. I appreciate the relationship we have had for a 
long time. I want to highlight the importance that I see in the 
consideration and ultimate passage of a Farm Bill. I am 
disappointed that there is a pause taking place and it seems to 
be that there are those in the Senate who believe the current 
Farm Bill is satisfactory, it meets their needs.
    I also recognize the challenges that would exist in the 
House in trying to pass a Farm Bill as well, so there is plenty 
of responsibility here that needs to be met, but it is the 
first time in, I don't know, I have been maybe through four 
Farm Bills, been on the Conference Committee for two or three 
of them. It is the first time that I have ever seen that we 
voluntarily decide that we can't get a Farm Bill done.
    And you outlined the challenges that producers face, and I 
don't expect you to respond to this, but I did not want the 
moment to pass without again asking the Senate leadership of 
the AG Committee, and the leadership of the Senate, to 
reemphasize and refocus on getting a Farm Bill done. I have a 
lot of interest in trying to deal with drought and water issues 
in the Farm Bill, conservation practices.
    On the farm income, you predicted, the USDA predicted it 
would be down 43 percent in the last 5 years since the last 
Farm Bill input costs are dramatically rising, have risen, and 
so I don't want us to walk away from this.
    Mr. Secretary, about a year ago we were in Manhattan 
Kansas, cut a ribbon on the National Agro-Bioscience Research 
Facility, its importance becomes it is more evident all the 
time? Would you update me and the committee on the transition 
activities, and the mission transfer from Plum Island to 
Manhattan?

               NATIONAL AGRO-BIOSCIENCE RESEARCH FACILITY

    Secretary Vilsack. The official transfer from the 
Department of Home Homeland Security to USDA has occurred, and 
we are in the process now of, as you say, moving select agents 
and other matters from Plum Island to Manhattan, Kansas, and we 
are doing this in a very thoughtful, and very careful, and a 
very systematic way. I am pleased with the progress that we 
have made so far. I anticipate more progress being made this 
summer and this fall, and I think we are going to be 
significantly operational by the end of this year.
    Senator Moran. Any challenges, workforce or otherwise that 
you need help with?
    Secretary Vilsack. Well, there is always the issue of 
budget Senator, this is a state-of-the-art facility that is 
unique, and so when things don't work, and you have to get them 
fixed, or you have to get them repaired, or you have to get 
them replaced. There is a significant expense because of the 
level of security that we now have in this facility. But I am 
confident that we have got the workforce that is dedicated to 
the mission, and that we are going to help American agriculture 
and the country.
    Senator Moran. In fiscal year 2024 we appropriated the 
President's request; we will work to do so in fiscal year '25. 
Staying a bit on this topic, I recently visited with the Kansas 
Department of Agriculture, its Secretary, and staff of the 
Animal Health Commissioner, USDA Regional Veterinary Director, 
and livestock producers throughout Kansas.
    Mr. Secretary, what we are talking about is H5N1, and it 
has spread to mammals; can Animal and Plant Health Inspection 
Service (APHIS) through, either its contingency funds or 
emergency response work with land grant and diagnostic labs 
that have the expertise in livestock management and biodefense 
to make funds available to research H5N1 that could either 
treat infected animals or develop the therapies that stop the 
spread, or mutation of the current strain?

                                  H5N1

    Secretary Vilsack. I think that work is already underway.
    Senator Moran. With any success that you could report or 
challenges you would face?
    Secretary Vilsack. Well there are significant challenges 
from a scientific perspective, but you know we are going to 
continue to work on them, and we hope that within 12 to 18 
months we are in a much better place than we are today. It is 
going to take time, you have got to match the virus, if you are 
looking at vaccines you got to match the vaccine to the virus, 
you have to make sure that there are markers that can 
distinguish, especially in poultry, between diseased birds and 
vaccinated birds.
    You have the trade implications, I mean it is a pretty 
complicated question it doesn't lend itself to a five-minute 
question and answer.
    Senator Moran. I would be glad to have a long cup of coffee 
with you.
    Secretary Vilsack. Sure.
    Senator Moran. On that topic, and then I will save my other 
questions for the next round, if there is one. What is the 
status of scientific study on the H5N1 threat to new mammals? 
And what are you seeing in trade implications to date?
    Secretary Vilsack. We have made a concerted effort to reach 
out to our trading partners, and so far I think there has been 
an understanding and appreciation for the amount of information 
we have provided our trade partners, we have seen very little 
restriction, if you will, a couple of countries expressing 
concerns, but for the most part our trading partners understand 
that we are on top of this, that we expect and anticipate our 
dairy cows to recover, that our milk is safe, and that is very, 
very low risk to people.
    Senator Moran. We are going to continue to do a lot of 
research on this, so that we understand and appreciate the 
transition and transmission of this. We know that there is 
heavy virus in the milk, we know that that milk when it is 
pasteurized it is safe. But there may very well be a 
circumstance and situation where we need to be ever vigilant, 
in terms of biosecurity especially around the milking parlor, 
in terms of having access to what may be virus filled milk that 
in turn can be transitioned.
    We also have facilities that are both poultry and dairy, we 
want to make sure that the transport between those two is very 
carefully thought through, because there can also be 
biosecurity issues there.
    Senator Moran. Kansas has become such a dairy state Mr. 
Secretary. And thanks to Senator Fischer. Thank you Mr. 
Chairman.
    Senator Heinrich. Mr. Secretary, please keep all of us up 
to speed on this issue, because it is something I think 
everything single member of the committee is following.
    We are going to continue the tradition of order of arrival. 
So we are going to go with Senator Fischer, and then Senator 
Hyde-Smith.
    Senator Fischer. Thank you, Mr. Chairman.
    Secretary, it is nice to see you again. In fiscal year 2024 
I was glad to secure $25 million toward USDA's ARS National 
Center for Resilience and Regenerative Precision Agriculture to 
be collocated at the University of Nebraska-Lincoln. And I am 
excited that we will be holding a groundbreaking in a few weeks 
alongside some of your leadership at USDA, and I look forward 
to continuing to work with USDA on that facility and to advance 
that very important technology.
    I also want to discuss the USDA Meat Animal Research Center 
at Clay Center (USMARC), Nebraska. As you know, livestock is 
the largest segment in the--for agriculture in Nebraska. I was 
glad to see the budget request included a request for 
additional employees at USMARC, in Clay Center. Your ARS budget 
request also highlighted some of the important advancements 
that USMARC has accomplished such as a development that could 
protect cattle from Bovine Viral Diarrhea (BVD), which is 
estimated to cause annual losses of $1 billion in the United 
States alone.
    So Mr. Secretary, could you discuss how that increase staff 
at USMARC can help carry out research related to critical 
livestock industry priorities including increased environmental 
sustainability, improved production efficiencies, and optimized 
use of natural resources?

                      MEAT ANIMAL RESEARCH CENTER

    Secretary Vilsack. I think the easiest way for me to answer 
that question is to suggest that we will approach these 
challenges in the same way we approach all challenges relative 
to agriculture, and that is in a cooperative and collaborative 
way, working not just with the university, but also working 
with those who are directly impacted and affected by the 
research.
    Critically important to any of this, is the cooperation of 
producers, and producers are in the best position to inform us 
as to where they think priorities should be, and we should be 
responsive to those priorities, and the research should be 
driven, in part, by virtue of those priorities. It should also 
work in concert with the research that we are independently 
investing in through our National Institute of Food and 
Agriculture, as well as the private foundation that was 
established in a previous Farm Bill.
    So we have a comprehensive approach, a coordinated approach 
so that we are not basically spending $2 when $1 will do. So I 
think it is a collaborative approach, it is a cooperative 
approach, and it is a comprehensive approach.
    Senator Fischer. Have you seen that approach at Clay 
Center, working with producers in Nebraska?
    Secretary Vilsack. I have seen that in ARS facilities 
across the United States. I haven't had the opportunity to 
specifically visit that particular Center, but I would be 
surprised if that is not the way in which they are approaching 
their business, because that is the most successful way to do 
their business.
    Senator Fischer. I have heard very positive things about 
the center obviously our AG producers, our beef producers are 
extremely aware of the value that that Center has, not just for 
the state of Nebraska, but across this country as well, so I 
thank you for the interest there.
    I also believe it is important to maximize the funding that 
broadband programs are receiving, and to get Broadband to 
unserved areas in order to do that I think it would make sense 
that we have one data source that we can rely on about where 
broadband is and where it is not.
    Can you share how the USDA tried to promote a more 
consistent challenge process comparing what is used by rural 
utility service versus what is used by the Federal 
Communications Commission (FCC), in connection with the 
national broadband map, and has USDA considered measures to 
improve transparency or challenges by publishing written 
reason, decisions on those challenges?

                            BROADBAND ACCESS

    Secretary Vilsack. When we received the resource under the 
Bipartisan Infrastructure Law (BIL), the White House convened 
the FCC, the Department of Commerce, and the USDA, and 
expressed concern for collaboration and cooperation between the 
three entities. We made the decision that we would try to get 
our resources out under the ReConnect Program as quickly as 
possible, which we have. We have obligated those resources. We 
will continue to make announcements for the rest of this year, 
where roughly 320 projects will be funded.
    And the location, scope, and the nature of those projects 
were provided to the FCC and the Department of Commerce so 
they, in turn, could take that into consideration as they made 
decisions concerning the allocation of a far greater amount of 
money that they received. They, in turn, provide to the states 
to encourage the states then to make the necessary changes to 
ensure that we do, in fact, ultimately have access to decent 
Broadband everywhere in the country.
    Senator Fischer. Right. And you know, being able to have 
that accurate mapping is extremely important, and that, again, 
takes cooperation, collaboration not just from providers but 
their customers as well to be make sure it is accurate.
    Secretary Vilsack. You know, I think states were given an 
opportunity to weigh in, and hopefully Governors understood the 
importance of that, and I am sure they did.
    Senator Fischer. Okay. Thank you.
    Senator Heinrich. Senator Hyde-Smith.
    Senator Hyde-Smith. Thank you, Mr. Chairman.
    And thank you, Mr. Secretary, for being here. Good to see 
you again. I first and foremost want to thank you so very much 
for the work and helping me address the pine beetle disaster in 
Mississippi when we had that tremendous drought. It really 
affected our timber in softwood in Mississippi. And as you 
know, forest landowners and homeowners across the state have 
just been devastated by this pine beetle infestation.
    And due to the problem Mississippians are facing, just 
enormous economic hardship and risk such as forest fires, and 
trees falling on their homes, power lines falling on the roads. 
I mean, it is really significant in our state, with this that I 
don't remember happening in a very long time.
    But yesterday the national FSA Office announced the 
Emergency Forest Restoration Program (EFRP). The sign-up was 
beginning, they announced yesterday for all 82 Mississippi 
counties, and this was much quicker than we anticipated, and I 
am grateful that you made it happen quickly following our 
conversation at the last Senate AG Committee Hearing just a few 
weeks ago. It has been very helpful. And I am relieved that the 
forest owners will have some access to the funds for costs 
associated with the commercial thinning, the fire breaks, and 
the debris removal.
    I think everybody in my church has had a tree down on their 
house or close to it, from attending church and listening to 
all the concerns. But even driving the interstates throughout 
the state, it is really affecting us.
    But however, there is still a long road ahead of getting 
Mississippi forest landowners, homeowners, and municipalities 
back on their feet. And I am continuing to explore multiple 
angles to assist them. The Emergency Forest Restoration Program 
Authorization is certainly a huge step forward for landowners, 
and I want to make sure as many eligible Mississippians get 
help as soon as possible. That they know they are supposed to 
go sign up, where to go sign up, so I just want to ask you for 
your commitment to continuing to help me with that, and help 
ensure a smooth sign-up process for my constituents.
    So many times they will go to the office and they will say, 
it was so complicated, or I didn't get the right help. But I am 
just asking for your commitment to continue to do that.

                  EMERGENCY FOREST RESTORATION PROGRAM

    Secretary Vilsack. Senator, you have that commitment, and I 
think you can take some credit for the early sign-up, and for 
the fact that we extended the sign-up period, traditionally 60 
days, in this case, it is 120 days.
    Senator Hyde-Smith. Thank you so much. We have gotten a lot 
of calls. Now, I am going to switch to the Veterinary Medicine 
Loan Repayment Program, and last year's budget hearings we 
discussed this program, an important program that provides 
awards to help offset the educational loans of veterinarians 
who agree to serve in USDA designated rural veterinary shortage 
areas, which is very critical.
    I also mentioned the significance withholding tax applied 
to these awards, which diminishes the effectiveness of the 
program. You know, we give out these great awards, and then 
they have to turn around and give so much of it back to us in 
those taxes, but the Explanatory Notes accompanying your 2025 
budget request for the National Institute of Food and 
Agriculture proposed legislation to end the withholding tax on 
these awards. And I truly appreciate your drawing attention to 
this issue.
    Would you just, because it is in so many states, that this 
is effective, would you share with the subcommittee how 
burdensome this withholding tax is and how eliminating it would 
free more resources for your Department to help address the 
rural veterinarian shortage?

              VETERINARY MEDICINE LOAN FORGIVENESS PROGRAM

    Secretary Vilsack. Well, it costs roughly $200,000 to get 
that veterinary degree, and most of the folks who are getting 
it are not in a position to, basically, put that kind of cash 
into their career, so they have to borrow it. So anything that 
provides help and assistance or anything that diminishes that 
help and assistance, obviously, is something we do need to be 
concerned about.
    Frankly, the Veterinary Loan Forgiveness Program, as good 
as it is, probably could be better, and with tight budget 
concerns and considerations, we did the best we could. And one 
way to make it better is to make sure that it isn't reduced by 
the tax, and we would hope that that we get some direction from 
all of you that gives us the ability to go to our friends at 
Internal Revenue Service (IRS) and essentially say that this 
shouldn't be a taxable event.
    Senator Hyde-Smith. Yeah. Well, I certainly appreciate your 
approach to that because the shortage in rural areas is so 
significant. And we are talking our food supply here.
    Secretary Vilsack. Absolutely.
    Senator Hyde-Smith. And we want healthy animals. So thank 
you so much for that.
    Senator Heinrich. I am going to go back to Senator Moran 
for his second round.
    Senator Moran. Thank you for your kind consideration this 
time. Mr. Chairman, thank you.
    Senator Heinrich. I am so tough on you, Jerry.
    Senator Moran. Mr. Secretary, Final Rule on WIC Program, I 
am concerned, and I am pleased and you have expanded the access 
to fruits and vegetables, but you have diminished the 
availability of dairy; not true?

                              WIC PROGRAM

    Secretary Vilsack. No, sir.
    Senator Moran. That is good to know because we specifically 
directed, there was an agreement in increasing the--in the 
Appropriation Bill, there was a direction in the lease report 
language not to reduce that. So maybe just explain to me, what 
the rule is on WIC?
    Secretary Vilsack. We did reduce the commitment to fluid 
milk, and the reason we did is this is a supplemental program. 
We were basically providing 120 percent of the average daily 
milk consumption under the previous WIC rule, so we reduced 
that down to 78 percent, so consistent with the supplemental 
nature of WIC. Having said that, we also made the packaging for 
other dairy products, like yogurt, easier, so the expected 
anticipation is that more dairy is going to be consumed as a 
result.
    In addition, we are seeing an increased number of 
participants in WIC, so we expect and we project that roughly 
130 million more quarts of milk will be sold in the program 
than the previous year. So I think I can make the argument 
that, in fact, dairy is being assisted notwithstanding the fact 
that the percentage of milk may be down a bit.
    I would also point out that there are a multitude of ways 
in which this Department is assisting the dairy industry, and I 
won't go into them, but I am happy to give you the infographic 
that shows billions of dollars of assistance to the dairy 
industry.
    Senator Moran. Thank you for your answer. I will find out 
what the response to your answer is, and may be back in touch 
with you. I think it was last week that NASS, the National 
Agricultural Statistics Service, announced that it was 
canceling the July Cattle Report and discontinuing the Cotton 
Objective Yield Survey. I think that creates some concern among 
state departments and commodity groups. Is there more 
information that USDA can make available so that this 
information is there? Can you look into that, Mr. Secretary?

                              NASS REPORTS

    Secretary Vilsack. I mean, the problem, Senator, is that 
budgets have consequences, and when the NASS budget was reduced 
there is a consequence, and more importantly, to this 
particular topic, when it takes five or 6 months for the budget 
to be passed then the ability and the options available for 
dealing with a cut in the budget are limited, limited in this 
case to the estimates that are--future estimates as opposed to 
estimates that have occurred in the previous 5 months of the 
fiscal year.
    So I would encourage adequate funding, and encourage 
earlier decisionmaking, with all due respect, because it makes 
it easier. And in addition it is not just the NASS budget, it 
is also the fact that none of the pay increases were 
incorporated in the budget, so NASS and everyone else in USDA 
had to find the resources to deal with pay increases as well. 
So it is a complicated.
    Senator Moran. It is a cost-saving measure, in part, but it 
is also lack of information, timely information to create the 
statistic that is needed.
    Secretary Vilsack. Well, I understand but----
    Senator Moran. No. I am just reiterating what you told me 
to make sure I understand. Is that true?
    Secretary Vilsack. That is correct. Yeah.
    Senator Moran. Okay. Well, I certainly wouldn't defend the 
timeliness of Congress.
    Secretary Vilsack. That would be hard to do.
    Senator Moran. It would be hard to do, and I wouldn't try. 
I can assure you--the people that you have been visiting with 
this morning in this room share that view, that we ought to get 
our work done on time.
    I think my last question, Mr. Chairman, this is a narrow 
issue but has consequences. In my meeting with conservation 
district leaders, the conversation turned to, they were 
contracting for employees to do NRCS work, contract employees 
who operate NRCS vehicles, and act within their scope of NRCS 
contract duties, it has been determined that nonFederal partner 
employees like those are not covered by the Federal Tort Claims 
Act, and therefore it is hard to find the folks who are willing 
to take the risk to drive the NRCS vehicles and not have 
insurance coverage to do so. Is there a plan for fixing, or is 
this is another one that you can put the responsibility? We 
need to amend the Tort Claims Act?

                    NRCS CONTRACTOR FLEET INSURANCE

    Secretary Vilsack. I would ask for the opportunity to ask 
our General Counsel's office about that particular issue, so 
that I give you an accurate response. We will get a response to 
you in the next couple of days, if that is soon enough.
    Senator Moran. I didn't necessarily expect, although it 
wouldn't surprise me if you knew this topic, but I wanted to 
raise it because the pace to--the challenges of finding 
employees in NRCS, it has become----
    Secretary Vilsack. It is a fair question, and we ought to 
have an answer to it.
    Senator Moran. Okay. Thank you, Mr. Secretary.
    Senator Heinrich. Senator Manchin.
    Senator Manchin. Thank you, Chairman.
    Secretary, thank you for being here, I appreciate all your 
hard work. Last year, I had the privilege, truly, and you and I 
have had a relationship, and been friends for a long time, but 
collaborating with you and watching how you and your team 
worked, it is unbelievable.
    Coming to the aid of apple growers throughout the Mountain 
State, we had a heck of a problem, together we facilitated the 
successful harvest of our apple crop after unprecedented 
oversupply issues threatened the livelihoods of farms, bad 
weather left a significant share of apples cosmetically 
unsuitable for the fresh market in just a few short weeks.
    Our teams working together hand-in-hand to establish a 
brand new emergency apple buyback program, which worked 
tremendously, saving tens of millions of apples from rotting in 
the fields, the salvaged apples were then donated to charitable 
organizations, and food banks, not only in West Virginia, but 
nationwide.
    So I want to express my gratitude for your staff, and most 
importantly, yourself for taking the initiative and lead on 
this. However, oversupply challenges in the apple industry are 
widespread affecting growers nationwide. Maybe you can share 
the USDA strategy for achieving a sustainable long-term 
solution to this issue, and then some--it is going to go away.

                           APPLE OVER SUPPLY

    Secretary Vilsack. Normally, we have sufficient resources 
within Section 32, and perhaps the Commodity Credit Corporation 
to address surpluses of commodities, which is the traditional 
way. However, this year, for whatever reason, there seems to be 
a lot of surpluses of a lot of commodities. In fact, we have 
probably $2 billion of need compared to roughly a billion 
dollars of resource. So to the extent that we could get, you 
know, either additional resources within section 32 or maintain 
the flexibility that we utilize to solve these problems from 
time to time through the CCC, those two ways--those are the 
most effective and efficient ways.
    I think we are hopeful that with some of the other work 
that we are doing with the school meal rule, with the WIC and 
more and more consumption of fruits and vegetables that we will 
see over time, a diminishment of those surpluses, but in the 
meantime, we will continue to use the tools we have as long as 
there is no interference with those tools.
    Senator Manchin. All right. Also, Mr. Secretary, the COVID-
19 pandemic resulted in an unprecedented nationwide shutdown, 
resulting in the prolonged office closures, and significant 
disruptions in the labor market leading to millions of job 
vacancies across the nation. In your written testimony, you 
highlighted staffing challenges at the USDA, particularly 
within the USDA Office of Rural Development (RD).
    You have noted a concerning trend where the portfolio is 
expanded by 85 percent, yet staffing levels have declined by 30 
percent. As a Senator representing a predominately rural state, 
that is going to be troubling for all of us, especially in our 
states. So can the Department of Agriculture, can you believe 
with the staffing you have, or the reduction you have, with the 
demand you are having for services, can you meet the 
challenges, and what can we do to help?

                 RURAL DEVELOPMENT STAFFING CHALLENGES

    Secretary Vilsack. Well, Senator, we are going to meet the 
challenge as best we can, because the people who work for USDA 
are incredibly committed and are hard workers, and they are 
people that actually risk their mental health to get the job 
done. I can't tell you how many conversations I have had with 
folks who work for USDA who basically talk about the stress and 
strain of working not one job, but oftentimes two jobs, or two-
and-a-half jobs.
    So to the extent that you can provide--that you can right-
size programs for people that would help, to the extent that 
you can provide resources to adequately enable RD, to hire 
additional people. There was a period of time where they were 
under a freeze for a period of time that made it more 
difficult. And also to recognize that we, like is the case in 
many other areas of agriculture we have an aging workforce and 
we have significant retirements, so giving us the tools to be 
able to retain good people, or to attract new people with 
recruitment tools.
    Senator Manchin. How is the recruitment going as far as--in 
rural areas especially?
    Secretary Vilsack. Well, the problem is, this is a much 
bigger problem, Senator. Your Federal pay scale used to be 
the--it used to be the best job in a rural place, in West 
Virginia, in Pennsylvania, in my home State, Iowa, where I now 
live. But it is not necessarily the best job today. So there 
needs to be a discussion here about--are we serious about 
Federal employment? And if we are we need to take a look at the 
pay structure, and system so that it is more competitive.
    Senator Manchin. How many, and this is across the whole 
spectrum, but as far as in USDA, how many are still working 
from home, or remote, and how many are back in? What percentage 
is back into the office?

                        TELEWORK AND REMOTE WORK

    Secretary Vilsack. The best way I can describe this is 
roughly 82 percent of our workforce is sort of on the job where 
the job needs to be done. Now, that doesn't mean that they are 
necessarily----
    Senator Manchin. Is that the same as it was before the 
pandemic? I mean, they are back to where they were working.
    Secretary Vilsack. I would say for the most part, not in 
every mission area, but for the most part, collaboratively, or 
comprehensively, the work is getting--I can guarantee the work 
is getting done, and I can give you chapter and verse of how 
many loans we have done, and compare that to where it was 
before the pandemic. We are cranking out the work. There is no 
question about that.
    Senator Manchin. Let me just say one thing. I get more 
compliments working with your office, than I do with almost any 
agencies in the Federal Government because it is a rural state, 
we are so interacting with you all the time. So I just want to 
thank you, and all your staff here, they have done a great job. 
We are very appreciative.
    Secretary Vilsack. That may be because you have my cell 
number.
    Senator Manchin. That may be because we both know, where we 
both live.
    [Laughter.]
    Senator Manchin. Thank you, sir.
    Senator Heinrich. Secretary, first off I want to recognize 
the inherent challenges that exist to expanding tribal self-
determination within different parts of your Department, but I 
would just ask that you commit to working closely with me and 
my colleagues this year to determine what is needed for USDA to 
expand tribal self-determination opportunities, including 
through 638 Contracting Authority.

                       TRIBAL SELF DETERMINATION

    Secretary Vilsack. Senator, we are more than happy to work 
with you, and more importantly, or as importantly with the 
tribes. I mentioned the consultations that are going to take 
place. They are in nutrition, they are in forestry, they are in 
food safety, in an effort to try to figure out how to structure 
the self-determination that fits the mission of USDA. We are a 
little different than the Department of Interior, because many 
of the programs that the Interior Department have are expressly 
in and confined to tribal areas and tribal nations.
    Our programs bleed over into non-tribal areas, so it is 
important for us to make sure that we are aligning it 
appropriately, but we are very committed to this, as I think 
expressed by the fact that we have over 160 stewardship 
arrangements on the Forest Service, that is a good example, the 
work that we have done in the food distribution program, 
another example.
    Senator Heinrich. Yeah. And you have been very good about 
visiting New Mexico if you ever want to see a 638 contract that 
is been very successful, the Pueblo Santa Clara's 638 contract 
with USDA has been a real success.
    I am going to turn things back over to the Ranking Member 
for his final questions, and then I think we will probably wrap 
up.
    Senator Hoeven. Thanks Mr. Chair, the CCC, incredibly 
important because it is a flexible tool that we use for a lot 
of different purposes, as you know, and I believe it is 
something that that needs to be there because we never know 
what is going to happen in this--again this huge diverse world 
of agriculture. And so I think how we use it really matters, 
there is a number of things that we have used it for recently, 
going back to the drought issue that 2021, for example, my 
state was included, and there is about $5.5 billion right 
there, right now, that we have designated for some of these 
different uses, some you like better, some I like better. But 
again a number of or a variety of things that I think are 
really important.
    So again, my first point is, that CCC is an important tool, 
we need to be able to use it, we need to have flexibility, and 
I think you and I both agree the AG Secretary needs some 
ability, hopefully, working closely with us to utilize that 
tool and have it for the future but also where are you in terms 
of getting some of the current programs dispersed that we have 
utilize CCC--funding for?

                            CCC UTILIZATION

    Secretary Vilsack. Several of those areas. I will take the 
fertilizer area, for example, there is an opportunity for us to 
do significantly more projects, but we have to go through the 
Environmental Review, oftentimes there is a process by which 
before we can make an award, or finalize an award, we have to 
go through the National Environmental Policy Act (NEPA) 
process, that takes time, it takes staff, it takes resources, 
which we have.
    We have done 42 projects, but I anticipate that we would 
probably see another 50 projects in that space, so that is 
ongoing. There are ways in which we are working on the drought 
issue, and specifically with our sister agencies to determine 
whether or not there is a--an interesting collaborative that 
could potentially be between the Department of Interior and 
USDA, in terms of those resources, and then we are trying to 
work through our--the OGCs of the two departments.
    There are HPAI, those ongoing expenses continue to accrue, 
and we continue to pay them out, the Climate-Smart Agriculture 
Initiative was structured at the request of farmers, and 
ranchers, in 80 different organizations to be a three- to five-
year commitment, so those resources will go out over a period 
of time.
    So it is a question of the structure of the storage request 
that Senator McConnell requested. Well, it turned out that 
there was quite a bit of demand for that, to the point that it 
far exceeded the amount of money that we had allocated, so we 
are taking a step back and trying to figure out how to 
restructure that program to provide the assistance for the 
folks who actually need it, immediately, and an additional 
maybe modified approach for those who are confronted with a 
slightly different risk.
    I mean, so it depends on the specific item within CCC, but 
it is not for lack of effort, it is not for--we are not sitting 
on the resources, every single one of those is being advanced, 
and if you look at the resources that have been invested, I 
think you will find there is been significant activity in all 
of those accounts.
    Senator Hoeven. Well, and I think that is an example of 
program where you and I both recognize that creates an 
opportunity for us to work together to do some important things 
between Farm Bills. And so I think we need to make sure that we 
continue to work together to ensure we have, because there is 
some that seem to want to take it away.
    Secretary Vilsack. No. That is right.
    Senator Hoeven. And it has got to be collaborative, right, 
it has got to be a working relationship.
    Secretary Vilsack. Absolutely, and I think, frankly, if we 
could be a bit more creative about the structure of the Farm 
Bill, that this is a vehicle as we did with, Agricultural Risk 
Coverage (ARC), and Price Loss Coverage (PLC), and Conservation 
Reserve Program (CRP) that essentially provides the resources 
for funding of those programs.
    And the commitment I would make to you, Senator, is that we 
will never, ever, ever drain the account. We will never just 
for one thing, as has happened in the past, drain the account 
and force you to replenish it. We are very sensitive to the 
importance of maintaining some set of responsibility, fiscal 
responsibility in the utilization of those tools.
    Senator Hoeven. That is good. There are two other questions 
I want to try to get here. I know you addressed some of the 
Avian flu stuff which is, obviously, very important but one is 
on advancing some of these new initiatives on precision AG like 
we have in our state. We have this great partnership between 
North Dakota State University, Grant Farm, and ARS, and I think 
that this is just a huge benefit for farmers, in terms of 
precision AG which is such a big deal.
    If you will address how we can do more there? And then I do 
want to come back and ask you, we are getting budget pressure 
from things like WIC where we saw a $1 billion increase this 
past year, and then another $700 million increase this year. So 
we don't want our AG research and some of these new initiatives 
so vital to farmers, crowded out of this budget. So if you 
could kind of address those two in the time we have remaining?
    Secretary Vilsack. Well, the answer to the first question 
is, continue to be supportive of, and increase the funding for 
research, education, and extension. Every year we ask for 
significant increases in those--Research, Education, and 
Economics (REE) (ph.), and every year, we get a significant 
amount, but often less than what we were asking for. So that is 
the answer to that question.
    The answer to your question is I think eventually you all 
are going to have to confront the notion that this is a program 
that is very difficult to--with specific accuracy--to define 
precisely how many people will use it from day-to-day, week-to-
week, month-to-month, and it is very similar in that vein as 
the SNAP Program. The SNAP Program is a mandatory program. WIC 
should be a mandatory program.
    Senator Hoeven. Thank you, Mr. Chair. Just by closing 
comments, to hand it back to you then would be, again 
appreciate your work on all of these things I kind of laid out 
how important I think it is in terms of when we talk farm 
policy, it affects everybody in the country. So again, thanks 
for being here today.
    Senator Heinrich. Thank you, Ranking Member Hoeven, and I 
want to thank the Secretary and Mr. Nelson for being here 
today. This has been a great hearing.

                     ADDITIONAL COMMITTEE QUESTIONS

    Questions for the record are due by next Tuesday, April 
23rd. And we would appreciate responses back within--from USDA 
within 30 days if you can.

                          SUBCOMMITTEE RECESS

    [Whereupon, at 11:08 a.m., Tuesday, April 16, the hearing 
was adjourned, and the subcommittee was receessed, to reconvene 
at a time subject to the call of the Chair.]



   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
          RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 2025

                              ----------                              


                         WEDNESDAY, MAY 8, 2024

                                       U.S. Senate,
           Subcommittee of the Committee on Appropriations,
                                                    Washington, DC.
    The subcommittee met, pursuant to notice, at 10:00 a.m. in 
Room SD-124, Dirksen Senate Office Building, Hon. Martin 
Heinrich (chairman) presiding.
    Present: Senators Heinrich, Murray, Baldwin, Manchin, 
Peters, Hoeven, and Hyde-Smith.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                      Food and Drug Administration

STATEMENT OF HON. ROBERT CALIFF, M.D., COMMISSIONER

              OPENING STATEMENT OF SENATOR MARTIN HEINRICH

    Senator Heinrich. This hearing of the Agriculture 
Appropriation Subcommittee is now called to order.
    And I would like to begin by welcoming FDA Commissioner, 
Dr. Robert Califf, and thank you for being here today.
    I look forward to discussing the fiscal year 2025 Budget 
Request for the FDA. The responsibilities of the Food and Drug 
Administration are vast, and impact the lives of nearly every 
American. We need to ensure we have the resources to continue 
your critical mission. And I am committed to working with you 
during the Appropriations process to provide the funding that 
you need.
    That begins now with the fiscal year 2025 Budget Request 
that is in front of us. The request includes a total of 3.695 
billion in discretionary funding, a $168 million increase, a 
relatively modest increase for this Agency. I am interested in 
hearing about your priorities within this budget request, Dr. 
Califf, and what role this committee can play in ensuring we 
continue to have the world's safest food and drug supply.
    I will say that I am frustrated with FDA's lack of urgency 
in regulating the tobacco products and e-cigarettes that are 
flooding the market. And I am also concerned with highly 
pathogenic avian influenza and its potential impact to our food 
supply.
    I continue to be interested in investing resources in our 
domestic infant formula supply as we continue to recover from 
the 2022 formula crisis. All of these issues continue to be 
public health threats to our nation, and the FDA should be 
using all tools available to address them. I look forward to 
hearing your thoughts on these issues, and what FDA is doing to 
address them.
    Dr. Califf, I want to reiterate my continued support for 
FDA and the dedicated employees at your Agency. Last year we 
had to make some pretty difficult budget decisions under grim 
spending caps, and I am afraid that it is likely this year will 
not be much better. That is why it is important for us to hear 
your priorities, and the priorities of members of this 
committee. And thanks again for being here.
    And I will turn things over to my ranking member, Senator 
Hoeven.

                    STATEMENT OF SENATOR JOHN HOEVEN

    Senator Hoeven. Thank you, Mr. Chairman. And Dr. Califf, 
thanks for being here, and for your service as the leader at 
FDA, incredibly important position.
    I know it has been a busy time since your return, as 
Commissioner from the COVID-19 pandemic, to the infant formula 
crisis, and the current highly pathogenic avian influenza 
outbreak, which we will talk about a little bit, among dairy 
cattle, as well as ongoing drug and device shortages.
    So all of that on top of what you have to do every single 
day, which is, of course, to keep the food and drug supply safe 
for, you know, well more than 300 million Americans.
    Your Agency has authority over 160 (sic) foreign 
establishments and--excuse me--160,000 foreign establishments, 
and 135,000 domestic establishments, which is really 
incredible. And that ranges from food processing plants to 
facilities that manufacture life-saving medications, also 
countless individual products. So I appreciate that when it 
comes to keeping food and drugs safe and effective. You have 
got to get it right. And you really have got to get it right 
every single time, which is an incredible task.
    And that is, of course, why we provide the budgetary 
increases, you know, that we have, which have been substantial 
over the last 10 years. And Americans expect that. I mean, they 
expect, you know, you have set a high standard, and they expect 
that to be maintained in an ever more complex and 
interconnected world.
    So there are a lot of things we will talk about today, 
obviously no shortage of food safety issues. I appreciate the 
steps you are taking in terms of the reorg. I know that has 
been a massive task, and we want to talk about how that is 
going. Also, I am concerned in your budget plans for adequately 
funding state food inspectors, which we want to touch on. And 
then the drug shortage we are seeing across the country with 
various drugs, and that is something that we will need to 
discuss here as well; also, the rare diseases, lab-developed 
testing regulations, and of course, artificial intelligence, 
right.
    So a lot of important topics in your job, it is kind of 
like you touch on everything, and everybody, every day. Thanks 
for being here. Appreciate it.
    Senator Heinrich. Dr. Califf.

                 SUMMARY STATEMENT OF DR. ROBERT CALIFF

    Dr. Califf. Thanks, your commenting about everything every 
day. I just had my 55th high school reunion, and everyone there 
had some opinion about what the FDA should or should not be 
doing. I can assure you.
    So Chairman Heinrich, and Ranking Member Hoeven, and 
Members of the Subcommittee, thanks for the chance to be here 
before you today. I do want to start by thanking the 
subcommittee for your continued support of the FDA in a 
difficult fiscal environment. The Agency greatly appreciates 
the subcommittee's sustained commitment to our mission.
    The budget I am pleased to present to you today requests a 
total of $7.22 billion for the Agency, an increase of $341 
million above the fiscal year 2024 enacted levels. Looking 
ahead to fiscal year 2025, we intend to take significant new 
steps in our approach to addressing our numerous challenges, in 
particular through the largest reorganization in the history of 
the FDA. Virtually every component of the Agency will be 
impacted in some way by the changes, which will affect over 
8,000 of our 18,000 employees. At the center of this 
reorganization, we are building a newly Unified Human Foods 
Program.
    Following the independent evaluation by the Reagan-Udall 
Foundation and an internal review, we are bringing together 
human foods functions, resources, and personnel from across the 
Agency, all under a single leader. Importantly, this new Human 
Foods Program will create a clear line of authority. The new 
Deputy Commissioner has full decisionmaking authority over the 
entire program.
    We are also, renaming the Office of Regulatory Affairs as 
the Office of Inspections and Investigations, signaling a 
refocusing of that office on its core function of inspections, 
investigations, and import operations, eliminating duplication 
and increasing efficiency in how we handle these activities.
    As part of this effort, we are shifting the Office of 
Regulatory Affairs Medical Products, Tobacco Products, and 
Specialty Labs into the Office of the Chief Scientist to form a 
highly integrated network of laboratories and laboratory 
scientists that provide coordinated, cutting-edge regulatory 
science research, and support for all of the FDA.
    Additionally, we are making a number of other realignments 
to further improve efficiency and communication across the 
Agency, including moving cosmetics functions to the Office of 
the Chief Scientist, which is best positioned to support 
scientific expertise necessary to review cosmetic ingredients 
and implement the new authorities provided under the 
Modernization of the Cosmetics Regulation Act.
    The fiscal year 2025 budget requests will provide a solid 
foundation for these newly envisioned programmatic changes, as 
well as strengthen the Agency's capacity to protect and promote 
a safe and secure U.S. Food and Medical Product supply.
    Outside of the reorganization, we are also looking to make 
significant strides in other critical cross-cutting areas. For 
example, the past 4 years have demonstrated the importance of 
managing supply chains and mitigating shortages of critical 
products. Our fiscal year 2025 budget requests $12.3 million 
for supply chain work across nearly all product areas, as well 
as establishing positions to coordinate these activities across 
the Agency.
    Finally, I also want to emphasize the importance of the 
Agency's modernization of IT infrastructure and data processes 
at the FDA. We are requesting an increase of $8.3 million to 
further build on our centralized enterprise data modernization 
capabilities, as well as $2 million to implement common 
business processes and data optimization.
    The rapidly changing world demands that our systems evolve 
to meet future needs. This includes incorporation of computing 
advances like artificial intelligence, and advanced 
cybersecurity methods to protect our data and information. The 
industries we regulate and our own workforce have focused on 
the use of AI coupled with better data and sophisticated 
computing infrastructure for innovative ways to benefit public 
health, from efforts to detect contamination patterns and 
screenings for imported food products, to helping to identify 
potential cancer therapies for certain ultra-rare cancers.
    Finally, we have contributed significantly to the joint 
effort to deal with the highly pathogenic avian influenza 
outbreak. And I am pleased that our supply of milk products is 
safe. However, this virus, like all viruses, is mutating. We 
need to continue to prepare for the possibility that it might 
jump to humans.
    Thank you for inviting me today. And I look forward to 
answering your questions.
    [The statement follows:]
            Prepared Statement of Dr. Robert M. Califf, M.D.
    Chairman Heinrich, Ranking Member Hoeven, and Members of the 
subcommittee, thank you for the opportunity to appear before you today 
to discuss the President's Fiscal Year 2025 Budget request for the Food 
and Drug Administration (FDA or the Agency). I would like to start by 
thanking the subcommittee for your continued support of FDA. In a 
difficult fiscal environment, the Agency greatly appreciates the 
Committee's sustained commitment to our mission and providing vital 
resources which have been critical for FDA's protection of the public 
health, and we look forward to continuing to work with you to further 
address ongoing and emerging challenges.
    During my second tenure at FDA, I have spoken regularly about the 
need for operational change to address the numerous emerging demands of 
new technology and the rapid transformation in how the products we 
regulate are manufactured, distributed, purchased, sold, and used. 
Looking ahead to FY 2025, we intend to take significant new steps in 
how we approach these challenges, including by implementing the largest 
reorganization in FDA's history. Following the independent evaluation 
by the Reagan-Udall Foundation and FDA's own review of how we addressed 
the infant formula supply chain response, this reorganization will 
establish a single, unified Human Foods Program by merging all human 
foods functions, resources, and personnel from across the Agency. We 
are also taking this opportunity to further improve other functions of 
the Agency to create an organization that will break down siloes and 
fragmentation, leading to enhanced efficiency and collaborative 
operations to more effectively meet FDA's public health mandate.
    The funding requested in the President's FY 2025 Budget builds upon 
our existing work with additional resources crucial in helping the 
Agency adapt to a changing landscape. Our FY 2025 program level request 
totals $7.22 billion, which represents an overall increase of 
approximately $341 million in annual funding above the FY 2024 Enacted 
level. Of this total, $3.5 billion is for user fees, which is an 
increase of approximately $168 million over FY 2024 Enacted levels. As 
part of the total program level, the Budget also requests $3.7 billion 
in budget authority, an increase of $173 million. This funding will 
allow FDA to make significant progress on several important fronts, 
including (1) food safety and nutrition; (2) medical products; (3) 
crosscutting issues; (4) modernizing infrastructure, buildings, and 
facilities; (5) tobacco issues; and (6) strengthening biodefense. Of 
course, none of the crucial work done at FDA would be possible without 
our talented and dedicated workforce, which is why we're also 
requesting an increase of $114.8 million for public health employee pay 
costs as part of the total request for budget authority.
                          human foods program
    FDA has worked in concert with the broad ecosystem of States, 
territories, local governments, Tribes, and the vast array of industry 
entities to make the American food supply as safe as it's ever been. As 
our knowledge base expands, we continue to identify areas where 
improvement would further enhance the safety of our food.
    FDA's Budget request includes key investments for the Agency's 
Human Foods Program with $1.26 billion to support our continued efforts 
and commitment to strengthening FDA's food safety and nutrition 
capacity. FDA requests an increase of $15 million, in part to support 
microbiological methods and sampling improvements, which will enable 
more rapid and effective mitigation of produce-borne outbreaks in pre-
harvest produce production environments. This body of work will 
strengthen root-cause investigations essential to FDA's outbreak 
prevention strategy for produce. Such an increase would also help 
support FDA's food chemical safety programs, including an increased 
focus on post-market assessments of intentionally added ingredients and 
authorized substances used in food, food packaging, or color additives 
for food manufacturing to ensure they meet the safety standard in the 
Federal Food, Drug, and Cosmetic Act. An increase would also support 
our work to reduce exposure to contaminants that may enter food through 
the environment, processing, or other means.
    In addition, funding in our request will be used to grow the 
Agency's nutrition program within the planned Center of Excellence in 
Nutrition, as envisioned in the Agency's proposed transformation of the 
Human Foods Program. With an emphasis on early childhood nutrition, 
this request assists FDA in addressing the enormous public health 
burden of diet-related chronic diseases. As a cardiologist, I've seen 
firsthand the results of poor nutrition and diet, often stemming from 
childhood, and the long-term impacts from diet-related chronic disease 
that can occur. This is almost certainly one key cause of our recent 
decline in life expectancy-more than a 5-year deficit in life 
expectancy compared with other high income countries. This request will 
also assist FDA with its nutrition and labeling work in alignment with 
the White House's National Strategy for Hunger, Nutrition, and Health.
                            medical products
    FDA is dedicated to ensuring that safe and effective drugs, 
biological products, and devices are available to improve the health 
and quality of life for people in the United States. Without a doubt, 
responding to the rapid advancements made across regulated industries 
is one of the most challenging aspects of FDA's work, but one that we 
are excited about every day.
    FDA is committed to ensuring that products it regulates meet the 
requirements for marketing authorization while facilitating innovations 
in their development. Through effective interactions with private 
industry, Congress, and the public, we believe that FDA can help 
harness these groundbreaking advancements, like gene editing and 
artificial intelligence. Since 2016, FDA has been implementing the 21st 
Century Cures Act (Cures Act), a law enacted to accelerate medical 
product development and bring new innovations and advances to patients. 
The Cures Act authorized $500 million over 9 years to help FDA cover 
the cost of implementing the law.
    Overall, the enactment of the Cures Act has been associated with a 
dramatic surge in biomarker- based genetic therapies for rare diseases 
as one example, but this may be just the front edge of a major surge in 
highly effective, specific therapies for previously untreatable 
diseases. FDA requests an increase of $5 million for 21st Century Cures 
to reflect the last authorized level for Cures in FY 2025, for a total 
of $55 million.
                               cosmetics
    FDA appreciates the Committee's support for this vital area, and 
requests $8 million in FY 2025 to support the continued implementation 
of the Modernization of Cosmetics Regulation Act of 2022 (MoCRA). MoCRA 
provided the most significant expansion of FDA authority to regulate 
cosmetics since 1938. However, MoCRA did not include any new funding to 
implement these new authorities. These new resources would allow us to 
continue building on current efforts to better position the Agency to 
tackle issues such as asbestos contamination of talc-containing 
cosmetics, such as tattoo inks and permanent makeup. These requested 
resources will help bolster our activities in the cosmetics space, such 
as developing regulations and compliance policies; managing submission 
platforms associated with MoCRA provisions; reviewing MoCRA-required 
information submitted to FDA for industry compliance; and hiring 
additional subject matter experts to manage critical projects, such as 
the assessments of the use of perfluoroalkyl and polyfluoroalkyl 
substances (PFAS) in cosmetic products.
                       shortages and supply chain
    Shortages of drugs, devices, and foods that Americans rely on for 
their everyday needs can occur for many reasons, including market 
failures, manufacturing and product quality problems, manufacturing 
delays, and discontinuations. FDA plans to continue to use a proactive 
approach towards shortages--to the extent possible within its resources 
and authorities--to make supply chains more resilient, increase 
regulatory oversight, and when possible, help prevent or mitigate 
shortages of critical medical and food products that Americans rely on. 
The FY 2025 budget includes $12.3 million to advance FDA's capabilities 
to help prepare for, build resilience to, and respond to shortages that 
are supply- or demand-driven. For example, FDA will use this funding to 
improve analytics to estimate risk of disruptions in drug manufacturing 
and identify vulnerabilities so that we can be in a better position to 
intervene sooner. Further, approximately $3 million of this increase is 
dedicated to the recruitment of skilled investigators who will conduct 
inspections. This investment aims to bolster the regulatory oversight 
of the drugs, devices, and biologics industries, helping FDA to 
effectively provide inspection coverage to the increasing number of 
manufacturers within the medical products industry, and enhancing our 
ability to promote high-level manufacturing quality and a reliable 
supply chain.
                       enterprise transformation
    To improve the efficiency of our operations, FDA has proposed 
targeted investments to support our modernization activities. We 
request $2 million to support centralization of planning, 
implementation, and governance of high-priority business process 
improvement efforts. This funding will also support the work to build a 
unified data and operational platform to support our inspection work. 
This comprehensive initiative aims to modernize operational approaches 
and foster cohesion, with a specific focus to improve how we plan and 
conduct inspections so that more inspections can be done in the context 
of better supporting data and more efficient operations.
                   it stabilization and modernization
    FDA requests an increase of $8.3 million to further build FDA's 
centralized Agency- wide data modernization capabilities and strengthen 
our common data infrastructure, data exchange, and IT tools. With these 
additional resources, FDA will continue to improve data exchange and 
underlying technology platforms in support of the Agency's programs and 
mission-critical responsibilities to meet future challenges. 
Specifically, a stronger digital infrastructure better allows us to 
meet the challenges of emerging threats, support real-time evaluation, 
and more efficiently analyze information for recalls, adverse events, 
outbreaks, and biothreats. The rapidly changing capability of the 
information technology ecosystem demands that our systems evolve to 
support the rapid adoption of artificial intelligence in the products 
we regulate, including ensuring the continued success with our 
intensive cybersecurity program.
    FDA is requesting 2-year budget authority (FY 2025--FY 2026) for 
this funding to provide more flexibility and ensure the most effective 
use of these resources.
                        foreign office expansion
    In addition to assessing the current state of our domestic 
enterprise, FDA continues to assess the state of our foreign offices 
and international work including inspections, oversight, and 
collaboration with foreign food and drug agencies. The dependence of 
the industries we regulate on increasingly complex and interdigitated 
global supply chains demands that we apply more resources to assuring 
the quality and integrity of these dependencies.
    To support these efforts, FDA is requesting an increase of $1 
million for foreign office expansion. This funding will support the 
expansion of the Agency's foreign office footprint by increasing our 
resources to improve oversight of quality management systems and supply 
chains, facilitate additional FDA foreign inspections, and increase our 
ability to engage with counterpart regulatory authorities to strengthen 
public health protections.
           modernizing infrastructure, buildings & facilities
    In addition to necessary investments in our core operations, the FY 
2025 budget provides limited funding to support FDA's Infrastructure 
and Buildings & Facilities. These programs directly support FDA's 
priorities by providing office and laboratory space for FDA's workforce 
to perform its critical health work.
                           tobacco regulation
    Tobacco product regulation continues to be one of FDA's greatest 
opportunities to save lives and prevent devastating impairment of 
quality of life caused by cancer, strokes, and other consequences of 
tobacco use. FDA regulates the manufacture, marketing, and distribution 
of all tobacco products. Applications for more than 26 million tobacco 
products have been submitted over the last 3 years. FDA has resolved 
99% of those submissions, while ensuring decisions are scientifically 
accurate, legally defensible, and aligned with the authorities granted 
by Congress. In addition to premarket review, key areas of focus 
include policy and rulemaking, compliance and enforcement, research 
support, and public education campaigns. The Budget provides $798.6 
million for the Tobacco program, which will further bolster resources 
to invest in these critical regulatory activities.
    Within this request, there is an additional $114.2 million in 
proposed user fees to ensure that FDA has the resources to effectively 
address all regulated tobacco products, including e- cigarettes and 
other novel products, particularly those popular among youth. These 
products represent an increasing share of FDA's tobacco regulatory 
activities. The additional funding will bolster compliance and 
enforcement efforts, enhance premarket application review, and expand 
tobacco public education campaigns and science and research programs, 
as we work to mitigate harms and to protect consumers from the dangers 
of tobacco use. To ensure that resources keep up with the evolving 
landscape, the proposal would also index future collections to 
inflation.
    The Agency remains vigilant in overseeing the market and continuing 
to prioritize the use of our resources to maximize public health 
impact, including compliance and enforcement efforts to curb the 
unlawful marketing of all tobacco products, especially those used 
prominently by youth.
                        strengthening biodefense
    The COVID-19 pandemic also highlighted the need to proactively plan 
for the next public health emergency and ensure we have the resources 
and capacity in place to fully respond. The Agency has a unique and 
central role in the whole-of-government response to protect public 
health. The FY 2025 Budget's Strengthening Biodefense request for FDA 
includes $670 million in new mandatory resources for spending over 5 
years to advance activities to better prepare FDA for the next 
pandemic. These resources will help ensure an adequate level of 
regulatory capacity to respond rapidly and effectively to any future 
pandemic or biological threat by supporting the Agency's biodefense 
efforts, both domestic and globally, by bolstering FDA's capacity to 
provide timely recommendations and scientific advice to manufacturers 
designing and testing vaccines. Additionally, this funding will support 
increased research and development of diagnostics, next-generation 
personal protective equipment (PPE), and technology for biosurveillance 
and early warning. And finally, these resources will further strengthen 
data exchange and technology platforms to help ensure that FDA is in 
the position to respond to a public health crisis quickly and 
effectively.
                               conclusion
    While we are in the midst of a challenging budget environment, FDA 
continues to work with the resources at its disposal to serve the 
Agency's critical public health mission. The additional resources 
requested in this year's Budget represent the areas of greatest need as 
we modernize to address evolving consumer and industry needs. Once 
again, I thank the subcommittee for your continued support and I look 
forward to our continued collaboration. I am happy to answer your 
questions.

    Senator Heinrich. Dr. Califf, why don't you start right 
there and just talk a little bit about what that preparation 
looks like?
    Dr. Califf. Sure, first of all, it is important. As you all 
know, we have talked about One Health for a long time, the fact 
that we all live in a world and a universe where animals and 
humans are more and more connected because of international 
transportation, the fact that more people are living closer to 
farms and on farms. But this is a real example of One Health.
    Just roughly speaking, it is always a little more 
complicated than just the first take on it, but essentially, 
the Agriculture Department regulates the cows, we regulate the 
milk at the FDA, and the CDC has primary responsibility for the 
health of the workers on the dairy farms. And so we all have to 
work together across these organizations and agencies to take 
care of things.
    And there are so many aspects, I can't go through them all, 
but primarily from the FDA perspective, today, we are 
accountable for the milk. So when we heard about the problem, 
we needed to launch a program of testing the milk to make sure 
that it was safe, knowing that it was likely that there were 
more infected herds than we initially knew.
    And in fact, that is what we found. As you well know, when 
we looked at just milk before pasteurization, that is the raw 
milk coming into the bulk tanks, about 20 percent of a national 
sample turned out to have fragments of virus in it. And then 
the question was, is this infectious virus, or is it 
essentially fragments of dead virus that had been taken care of 
by pasteurization? We had a good reason to believe 
pasteurization would work because of 100 years of pasteurized 
milk. And in fact, it did. We found no evidence of live virus.
    And I am pleased to say there are many NIH and Agriculture 
Department researchers around the country, and universities, 
who were also looking, and we all found the same thing. But 
now, the other part that we are accountable for at HHS and 
within FDA is the countermeasures in case this does jump to 
humans. So we got to have testing, got to have antivirals, and 
we need to have a vaccine ready to go. So we have been busy 
getting prepared for--if the virus does mutate in a way that 
jumps into humans on a larger level.
    Throughout all of this, because there are so many agencies 
involved, countless hours of phone calls, and Zoom conferences 
to make sure that we are all coordinated, all in an environment 
where, let us just say it is not easy to get access to the 
farms because, you know, people are understandably protective 
of the environments in which they work.
    So a lot of work across the agencies here, and I feel like 
it has been a good example of how One Health can come together.
    Senator Heinrich. Great. Dr. Califf, how do you see the 
infant formula being managed under the new Human Foods Program?
    Dr. Califf. Well, I would really like to answer that 
question in two parts. And I think you may remember the day I 
was confirmed was the day of the Abbott recall, so it is not a 
very warm welcome to the FDA to hear that this is going to 
unfold. And so the first part is what we have already done, 
because just a comment about the reorganization, I am sure we 
will talk more about it with other questions, but we can't 
enact the reorganization until we get through Congressional 
notification process.
    We are still waiting on one branch of the Four Corners to 
give us the okay. Then we have to negotiate, or really reach 
agreement with the unions, which I don't think it is going to 
be a big problem, but the unions that represent 80 percent of 
our employees have a right to have a say. And then we are ready 
to go. We are amassed at the starting line to really get going.
    We have hundreds of people across the FDA who have 
volunteered to be champions of change in this massive 
reorganization. But in the interim because of the urgency of 
the infant formula issue, we have already done a lot of the 
work that we had to do. We now have many more people working 
within currently CFSAN, the food, part of the FDA on this sort 
of basic science and regulation that needs to go on, and we 
have beefed up the inspectorate, so they are called 
investigators at the FDA. We have a dedicated corps; all of the 
infant formula facilities are being inspected at least once a 
year.
    In the case of the Abbott Plant, there is a consent decree, 
so we are essentially there every day talking with them, and as 
issues come up, dealing with them jointly. But it is a whole 
different world now that the scientific experts, the 
investigators, and the leaders meet on a regular basis, plan 
the inspections, and when things are found, they are dealt with 
very quickly, as compared to a process which, in the routine 
prior, you know, it took some time to institute the changes.
    And we have, as you know, hired Jim Jones as the head of 
the Human Foods Program, although it is not the Human Foods 
Program yet until we--and this better decisionmaking structure, 
there was nothing wrong with the people that were trying to 
make decisions before, but it was not optimally organized to 
lead to crisp decisions that would lead to action being taken.
    Senator Heinrich. Great. Ranking Member Hoeven.
    Senator Hoeven. Thanks, Mr. Chairman. Yeah, I feel like the 
question just always, with these issues, leads to more 
questions. On the avian flu, now that has jumped to humans in 
some--I know there was a case in Texas, and has gone from 
cattle to humans already, in some cases, correct?
    Dr. Califf. So you might enjoy just a quick note about the 
biology here, not that I am--I mean I am a doctor, not a 
clinician, not a biological scientist, but the attachment of 
this virus is through receptors, that deal with something 
called sialic acid that are ubiquitous in all animals, 
including people. And it turns out the human conjunctiva, 
apparently, is the one part of the human that right now is 
susceptible.
    And so the one case that we have was conjunctivitis, not a 
serious illness, but conjunctivitis. And that case has been 
worked up by the CDC as best they could. But like all viruses, 
it comes and goes. So you have got to really catch it while the 
person is actively infected to do all the things that you would 
like to do. The real worry is that it will jump to the human 
lungs, where, when that has happened in other parts of the 
world for brief outbreaks, the mortality rates been 25 percent, 
so one in four, that is about 10 times worse than COVID.
    And so it is really, you know, we don't control how the 
virus mutates, and it is just a mathematical--viruses are 
always mutating; it is a mathematical probabilistic thing where 
the mutation will make it able to attach to these receptors in 
the human lining of the lung, that would make it perhaps 
transmissible through the airways, which would be really bad.
    So we have to be ready, and we have to do everything we can 
to limit the spread of the virus, which has gone around the 
world multiple times now, in many different species, but there 
is this debate, but there is a concern that when it invades 
cattle for the first time, which are closer to the human being 
than a bird, say, and the cattle are often intermingling with 
pigs on farms, and with farm workers, you know, a lot of the 
experts have told us they are particularly worried right now.
    So the public need not be worried. The risk is still low 
that that will happen, but it is sort of like I have -- this 
may be a bad analogy--but I think of it, having had relatives 
go through this, I would rather have the low deductible 
insurance than the high deductible insurance. That is if we 
institute the countermeasures now and reduce the spread of the 
virus now, then we are much less likely to see a mutation that 
jumps the humans for which we are ill-prepared.
    So the investment now, and the careful attention to 
management of the herds on the farms is really--and part of our 
job at FDA, we will have an active surveillance system on the 
milk so the public can be reassured that this, you know, 
critical part of the food supply is staying safe.
    Senator Hoeven. So I mean, it has moved from birds to 
cattle, and that process, you have got to be very careful, 
cattle, possibly hogs, or ultimately to people. How do you 
create a barrier there, that both, you know, the actual animal 
and then the byproducts? I mean, how do you create a very good 
barrier there so people are comfortable you got this thing, you 
know, contained or stopped from further migration?
    Dr. Califf. Unfortunately, there is no absolute barrier 
that can be created. But there are elements of protection that 
are important, like farm workers, if they are on a farm with 
infected cattle, and one good thing here, the cattle don't die. 
The mortality rate of cows with this virus is less than 1 
percent from what we are told.
    So the cattle will recover, but the workers need to be 
protected with PPE, just like we all went through with hospital 
workers with COVID when you are around animals that are 
infected. In the poultry industry, as you may know, they have 
already been through this.
    Senator Hoeven. Right.
    Dr. Califf. And the use of PPE is just routine in the 
poultry industry, but this is new for the cattle industry, and 
so there is a lot of work to be done to get to the right place 
there.
    Senator Hoeven. Is this our future with viruses, where we 
are just going to have to be with--across the board having that 
kind--you know the equipment, and the garb and everything, to 
stop it?
    Dr. Califf. You know, there is such a hard balance here for 
people like me because it is 25 years, if you look at all the 
literature, and the establishment in the government, of 
elements of protecting against future pandemics. This has been 
predicted. It is just a matter of time. I mean it happened in 
1918, that was probably a very similar incident of bird to 
human, or something like that, and so we are going to see these 
things cycle through, and what we want is to be better and 
better at dealing with it when it happens.
    And as we learn measures to prevent it from happening, and 
try to do it, but like I say there is no absolute barrier that 
we know of now, so it is, when there is an outbreak containing 
it which we--you know that would mean, for example, what is 
happening now is not shipping--and I am not an expert on cattle 
ranching, but cows get sold all the time and move across state 
lines.
    So containing it means if you got an infected herd, not 
doing that. And that is happening now, and I think it has been 
successful, but it also means having those countermeasures 
ready to go, so you got the antivirals, the vaccines, the 
monoclonal antibodies ready to go just in case it happens. So 
it is not new. It is going to be part of our lives, it probably 
happened a lot more historically in ways that we didn't even 
know because we didn't have ways of measuring it.
    Senator Hoeven. Thank you.
    Senator Heinrich. Senator Baldwin.
    Senator Baldwin. Thank you. You mentioned your high school 
reunion. I am heading to a big reunion in a couple weekends, 
and I am sure I am going to hear everyone will have an opinion 
on what should be happening in Congress. You are hearing from 
your old classmates.
    Anyways, thank you for joining us today, Commissioner; and 
I am going to continue on the same uh theme that previous 
senators have asked, because I represent America's dairy land. 
And the outbreak of avian flu in dairy herds in the United 
States is a significant issue. Wisconsin is home to over 5,000 
dairy farms--dairy herds, and roughly 22 percent of the 
nation's total herd count. So this is a big deal for us.
    As you can imagine Wisconsin farmers and dairy producers 
are concerned about its potential to spread to their own 
operations. Two weeks ago I sent you a letter requesting robust 
coordination and communication on highly pathogenic avian 
influenza, in order to protect our nation's farmers, workers, 
and dairy supply chain.
    So I am really interested in--you know, you outlined 
already the different agencies that have a role in this, human 
health, health of the herd, health of the food supply; please 
talk about that coordination and communication, and how it is 
happening?
    Dr. Califf. Well, I would point to multiple levels of 
coordination. At the highest level, the OPPR, which you all 
helped create, through legislation and the White House, 
coordinates across agencies. I mean, as you all know, the 
Agriculture Department is a separate department. FDA is within 
Health and Human Services
    Senator Baldwin. Right.
    Dr. Califf. And so there is an office there which has a 
call every single day, where leaders, in fact, I am missing the 
call today, but the leaders of each of the relevant agencies 
review what has happened the previous day, what the plan is, 
and what the long-term plan is. And then within HHS, because we 
have CDC, ASPR, and FDA, in particular, who have to be 
involved.
    We have a separate call every day just for the HHS part of 
it, to make sure that we have our act together as it relates to 
human health. And of course, at FDA, we have a cross thing, 
because we also have the Center for Veterinary Medicine in the 
animal involvement.
    So there is a lot of coordination. I think it is going 
well, and it is very strategic, but we do have some hurdles. 
And I just say, well beyond that, you also know that the states 
play a huge role in the management of the safety of the food 
and farms, in particular.
    And so we are constantly in touch with all the regulators 
in the states, and every state system is different in terms of 
how it is configured. So access to the farms, for example, is 
something that really has to be negotiated through the states, 
the farmers, and the owners of dairy farms are more comfortable 
with people that they know that are in their state. So all this 
has to be coordinated. I feel like we are doing a good job of 
that.
    Senator Baldwin. Let me just ask a little bit. You talked 
about the difficulty in getting access to the farms, but you 
mentioned earlier the ability to test unpasteurized, and then 
test pasteurized milk, are you having any difficulty at the 
processing stage of getting that access?
    Dr. Califf. The pasteurized milk is absolutely no problem 
to test, because we just have, we have people that go to stores 
and buy milk off the shelves anyway for all sorts of other 
testing. As I am sure you know, from the state that you are in, 
you have all these cows, the milk goes into bulk tanks which is 
a mixture of a number of cows, and that is a very sensitive 
area because it does point, if there are infected cows, as to 
where the infections are. And technically, it is no problem but 
we want to make sure that we have trust. And so there is 
negotiation that needs to go on to make sure that there is a 
safe way to handle the data, and that people are not going to 
be castigated if they happen to have an infected herd. So we 
are working through all that state by state.
    Senator Baldwin. Yeah. Okay. And can you share if you need 
any resources in order to increase your testing and treatment 
capacity?
    Dr. Califf. Well as you might imagine, we have expended a 
lot of resources in the absence of any additional funding, and 
we are keeping track of that, and looking at potential sources 
within in our case within HHS, for example. I think it is 
predictable that we are going to be in a new environment for 
milk, in particular, because of this virus, the way it has 
affected other species as it sort of cycles around. And one 
thing about cattle they are always new cattle coming up, so 
they are always going to be cattle that are susceptible to 
getting infected.
    So it is predictable there will be a need for resources. We 
are keeping track of things, and as we get a handle on what we 
need to do going forward, we will keep you completely informed 
about where we stand, including the reserve opportunities 
within HHS.
    Senator Baldwin. Thank you Dr. Califf.
    Senator Heinrich. Senator Hyde-Smith.
    Senator Hyde-Smith. Thank you, Mr. Chairman.
    And thank you for being here today, Dr. Califf. I want to 
talk about medical gases. I hate to drive this nail into the 
wall but I have not seen any movement on this issue so we are 
going to continue to pursue this because I have constituents in 
Mississippi that this really affects. I have repeatedly brought 
up the issue of medical gas whether in previous hearings and 
several letters, and my colleagues and I continue to push on 
this issue.
    Congress required the FDA to update its regulations for 
medical gases in July of 2016, and almost 8 years later the FDA 
has still failed to fulfill its obligation to the millions of 
American patients who rely on medical gas daily.
    My colleagues and I have consistently encouraged the FDA to 
meet its statutory requirement and promulgate rules for medical 
gases. But instead the FDA continues to regulate medical gases 
under regulations written for traditional pharmaceuticals that 
do not share the unique characteristics of this category of 
drug products.
    While I appreciate the fact that the FDA finally issued its 
long overdue proposed rule for medical gases in 2022, this 
month will mark 2 years since the rule was even published. The 
FDA only received four, 1 2 3 4, public comments, and yet your 
Agency still has not published the final rule making. And there 
is just really no excuse for the delay. It is time to finalize 
the rule. So what is your plan for publishing a final rule 
making in the 2024 calendar year?
    Dr. Califf. Yeah. I am not going to beat around the bush 
about this. I distinctly remember you are bringing this up last 
year, and I also told you that time, it was a long time ago, 
but I was actually a co-founder of a medical gas company. So 
you know, that company no longer exists, so I don't have any 
conflict related to this, but I feel like I have a good 
understanding of it.
    What I would say is just a couple of quick things. This 
rule involves every single part of FDA, and there has been a 
lot of negotiation that need to go on to make sure that we get 
it right as it affects things like veterinary health, and 
biologics, and devices, and drugs all relevant here. I also say 
we have a published date to have this concluded by October of 
2024.
    Senator Hyde-Smith. So October of 2024 is when we can 
expect the final rule?
    Dr. Califf. I would say before then.
    Senator Hyde-Smith. Wonderful, wonderful news, because I 
don't want to have to ask it again next year.
    Dr. Califf. No, you don't. And I don't want to have to take 
the question again. I would love to see this thing out. And I 
can't give you the exact date but I think it will be----
    Senator Hyde-Smith. Okay. That is good enough. And I still 
have some time left, and I want to talk about the illegal 
advance prescribing. I have repeatedly brought to your 
attention to the dangers the women face when allowed dangerous 
life-ending chemical abortion drugs which can be ordered by 
consumers through the mail, are purchased in retail pharmacies 
without ever seeing a doctor in person.
    My husband has a doctor's appointment Friday morning for a 
sinus medication that he can't get refilled until he sees the 
doctor. So it blows me away that you can get this with no 
doctor oversight, and it is a drug that will literally cause 
you, intentionally, to have an abortion and end your pregnancy, 
and the life of that child.
    The FDA is supposed to protect Americans from taking 
medications that could be harmful, however, you continue to 
look the other way and claim that mifepristone is safe, in 
part, based on the lack of reports of nonfatal adverse events, 
due to the FDA's own relaxed reporting requirements, and 
continue to allow the women to put their lives at risk in the 
name of the pro-abortion agenda.
    And it has been reported on more than one instance, that 
American women are stockpiling the abortion pills through 
advanced prescribing from abortion companies and providers. And 
according to another article in Politico, an FDA spokesperson 
stated that the FDA is concerned about the advanced prescribing 
of mifepristone, and that mifepristone is not approved for 
advanced provision of a medical abortion, it is not even 
approved for that, and they can get it without even seeing a 
doctor.
    So what concerns the does the FDA have with the advanced 
prescribing of this mifepristone? And is it true that the FDA 
has not approved mifepristone for advanced provisions of an 
abortion. And I have two follow-up questions with that?
    Dr. Califf. Well, I know you are aware that I am limited in 
what I can say because the issues around this are currently 
under consideration by the Supreme Court.
    Senator Hyde-Smith. But what is FDA doing?
    Dr. Califf. Well, remember that, first of all, just one 
technical point to make is that there has to be a prescription. 
The companies can't write prescriptions so it is doctors that 
writes prescriptions.
    Senator Hyde-Smith. Without seeing a doctor though, without 
physically seeing the doctor, they can just write the 
prescription with no visit.
    Dr. Califf. All right, so----
    Senator Hyde-Smith. Like for sinus medication that he has 
to go in to see the doctor.
    Dr. Califf. But remember we don't regulate the practice of 
medicine, so there has to be a doctor that writes the 
prescription the conditions under which that is done are----
    Senator Hyde-Smith. But when they are violated the law by 
allowing them to stockpile, what is your responsibility then?
    Dr. Califf. We don't advocate stockpiling as a method but 
we don't--again we don't regulate the practice of medicine.
    Senator Hyde-Smith. So you have no role whatsoever in 
preventing the stockpiling of this.
    Dr. Califf. I don't know how we would.
    Senator Heinrich. Senator, your time has expired.
    Senator Hyde-Smith. Thank you.
    Senator Heinrich. Senator Peters.
    Senator Peters. Thank you, Mr. Chairman.
    Dr. Califf, good to see you again here. In 2021 the FDA 
found that some infant formula products had been released to 
the public while contaminated with Cronobacter, this didn't 
just cause widespread panic, and a nationwide formula shortage, 
it also revealed I think the effects of a glaring problem, that 
the FDA does not currently have the authority to inspect infant 
formula until after the product has left the manufacturer's 
control.
    The FDA's two past budgets have requested additional 
authority to require industry to conduct testing of final 
infant formula products, and I have been working on legislation 
to provide this authority that is so essential for you to 
protect infant formula. The bill would require infant formula 
manufacturers to test for key contaminants before releasing 
their product out to the public, and give positive test results 
to the FDA.
    So my question for you, sir, is if the FDA had the 
authority to test infant formula products before they went out 
to the market how would that prevent future recalls, and 
potential supply chain difficulties like we saw during 2021 
infant formula crisis?
    Dr. Califf. I really do appreciate the question, and the 
background there. And you are correct that there is no 
requirement of reporting to the FDA the results of testing the 
companies, so even if they find bacteria they are accountable 
for getting rid of those lots and not putting them into 
circulation. But it would really help us a lot if there were a 
requirement for testing, and if the tests are positive that we 
be notified.
    So in the case of the recall that we had there were just a 
lot of bad conditions in that one plant, we would have known 
about that a lot earlier had we know about the results of 
testing the companies.
    And I might add, in most of our regulatory paradigms that 
the first line of defense is the industry that we regulate, 
like in the production of medications. We don't test every lot 
of medications but the company that manufactures the drug is 
required to do it, and they have the records available for us 
to look at.
    And we would like to see the same thing happen, not only 
with INF formula, but also with regard to all critical foods, 
particularly for children. You are aware that we recently had 
the contaminated apple sauce with lead. And so we are asking 
Congress to give us the authority to require that that be done.
    Senator Peters. Great. Thank you. Last year one of my 
constituents, Shandra Eisenga, lost her life after being 
treated for a tuberculosis infection with a contaminated bone 
graft from Aziyo Biologics. Her case, I think, just shows how 
dangerous it is when TB is spread through the transplantation 
of human cells tissue as well as cellular-based products.
    Inspected lots were not just sent to Michigan, but also to 
California, Louisiana, New York, Oregon, and Texas, and this 
was the second outbreak from this company, which was also 
responsible for a 2021 outbreak that infected 80, and killed 
eight people.
    I remain concerned that we are not doing enough to stop the 
spread of TB through transplantation of human cell tissues, and 
cellular-based products. And that is why I have introduced 
legislation that would conduct an educational campaign about 
the risk associated with human cell and tissue transplants, and 
would allow for civil monetary penalties for companies that 
violate compliance standards, similar to that of traditional 
medical devices, or tobacco products.
    So my question for you, sir, does the FDA have the 
resources it needs to ensure that all registered human cell and 
tissue establishments are being properly inspected?
    Dr. Califf. Again, I really appreciate the work you are 
putting into this. And I will just say the issue of cell and 
tissue therapy is one of the most promising things that we have 
in our armamentarium of developing treatments to prevent and 
treat human disease. But it also has a downside, and it gets 
very complicated because it intersects with the practice of 
medicine issues, and very complicated interpretation of 
regulations about the type of tissue used, and how much it 
falls into a category more like a drug, or a device in terms of 
the way it is regulated.
    So your efforts to clarify this are much appreciated. It is 
a focus of ours. The Civil Monetary penalties will be a big 
help to us because it is murky, it gives bad actors a chance to 
do bad things in a way that is hard for us to stop, when we 
have so many good actors who are doing so much good with this 
type of treatment.
    I also applaud your efforts at education. It is a 
complicated area when you hear about stem cells, and cell 
therapy, and such, it is very exciting, but the details are 
important, and if there are, like I say, some people not acting 
above board in this regard.
    I don't want that to detract from the majority of people 
who are really breaking new ground in ways that are going to be 
very good for human health.
    Senator Peters. Right, absolutely, but we do have to have 
the oversight. So I appreciate. Thank you for your comments.
    Thank you, Mr. Chairman.
    Senator Heinrich. Senator Manchin.
    Senator Manchin. Thank you, Mr. Chairman.
    Dr. Califf, last year, during your previous testimony 
before the Committee and FDA held an Advisory Committee Meeting 
on opiates, which you know is extremely devastating to this 
entire country, especially to my State of West Virginia. In 
particular, the questionable clinical trial practice known as 
Enriched Enrollment. The Enriched Enrollment process has made 
it significantly easier for FDA to approve opiates and allow 
for broad marketing to the public. The process removes the 
patients with pre-existing opiate sensitivities from clinical 
trials instead of sticking with traditional double-blind 
studies.
    This has skewed results and seriously underestimates risks 
associated with a proposed drug involved in the clinical trial. 
The Advisory Committee last year expressed concerns during the 
meeting about the Enriched Enrollment is able to really address 
whether an opiate is better than a non-opiate.
    In September I sent a letter, sent you a letter asking for 
an update on what FDA is doing in response to these concerns. 
We haven't heard a thing. So what have you done, in response to 
concerns raised regarding the Enriched Enrollment?
    Dr. Califf. Well, Senator, thanks for the question. As we 
have discussed before, I am a clinical trialist by profession, 
it has been my whole career, so I certainly understand the 
issue that you are raising. And you know that we had the 
Advisory Committee meeting, the advice is publicly available, 
and we take it seriously. I don't think you will see Enriched 
Enrollment as a practice in the routine management of the 
affairs of opioids. There are other circumstances in medicine 
and health care where it is a very important constituent of the 
armamentarium of clinical trial methods that are important to 
have available.
    Senator Manchin. Let me go. Well, let me go into this then. 
And one of the recommendations in external review of the FDA 
regulations of opioids report that you ordered was to ensure 
the FDA be as transparent as possible regarding decisionmaking, 
which I appreciate. The Advisory Committee has presented 
complex scientific reviews of safety and efficacy of medicines. 
And most patients and the general public really don't have a 
background to fully understand the scientific studies, which 
you are explaining.
    But the FDA announced that it will be holding a listening 
session on June 13th to discuss the role of the advisory 
committees, specifically, to improve the public understanding. 
One element that you have stated is to reduce voting. How can 
you reduce voting with these scientists, and like yourself, 
being in that position before if you can't vote to where you 
think something is effective or not?
    And that leads into another question. I could never believe 
this happened, okay, with Zohydro. When Zohydro, I don't think 
you were there at this time, 11 to 2, the Advisory Committee 
voted against putting this product on the market, and at that 
time, I think she was the Head, Woodcock, was the Head of it, 
did it anyway. And I could not believe it, could not believe 
it. So if you take voting out of the process.
    Dr. Califf. I don't know. Senator, I don't know if anyone 
who has--first of all, as a clinical scientist, the epitome, 
the peak of my academic career was being on the Cardiorenal 
Advisory Committee where everything comes together.
    Senator Manchin. Yeah.
    Dr. Califf. I don't know if anyone is advocating the taking 
of voting completely away.
    Senator Manchin. As to reduce the voting, how would that--

    Dr. Califf. But let us remember, advisory committees are to 
give advice to the FDA, often not about a particular product, 
but about a field, how to think about a field, where the vote 
doesn't particularly have a purpose. In addition to that, what 
the FDA is most interested is what the Advisory Committee is 
thinking, what is behind the reasoning for the way they feel 
the way they do. That is much more important than the sort of 
excitement of having a vote from people that have convened for 
one day without all of the background that the FDA has, that 
has been meeting, and looking at the data for months.
    So the Advisory Committees are very important. I am a big 
proponent of having them. We just need to make sure that they 
are meeting the purpose for which they exist. And with regard 
to votes that go the other way, if we always took the advice of 
advisory committees, we wouldn't need the FDA, just convene an 
advisory committee, so----
    Senator Manchin. These are scientists giving you a 
different opinion. The only thing, when I look at an advisory 
committee, these are people that are not beholding to the 
company that is asking you to approve a new patent, or whatever 
it may be.
    Dr. Califf. Well, they are----
    Senator Manchin. Let me just say this, because my time is 
very limited and the thing that opiate is just a scourge on our 
society, and it has been for quite some time. It has devastated 
my state in ways that you can't even believe, and what it has 
done around the country. We killed more people with overdoses 
than we have in any wars we have ever fought in, starting back 
from the Civil War.
    But I can't ever figure out why do we allow, I mean, and 
evaluate, if a new product is coming on the market, your job is 
to make sure it is an improved product that will reduce the 
suffering of humans, it is better for a society, and these 
products keep coming at you all and they not taking anything 
off. If something is going to improve and be better, then don't 
you think something should be removed from the market? They are 
just flooding the market with the things they have had forever, 
killing Americans, and killing West Virginians, and bringing 
more things to do more damage.
    Dr. Califf. Well, let me just say I, you know, my staff is 
available to yours, and I think they are talking.
    Senator Manchin. Sure.
    Dr. Califf. And as frequently as possible. In my view, we 
need a legal construct if we are going to pull things off the 
market.
    Senator Manchin. We will work with you on that. If you are 
telling me we have to do something, you need legislation here 
to pull things off the market once they have been approved, and 
even though something is replacing, it is better.
    Dr. Califf. I really, you know, Senator, as I have aged in 
this job, I really believe----
    Senator Manchin. We are all aging right now.
    Dr. Califf. [continued] we at the FDA are referees, 
primarily. The Rule Book is written by Congress, so when you 
write a law, we follow the law.
    Senator Manchin. Okay. Fair enough.
    Dr. Califf. Let me mention one other, just, you may be 
prepared to ask about this.
    Senator Manchin. Okay.
    Dr. Califf. The issue of--you know, personally, I am very 
much in favor of something you have advocated for, which is for 
a new opioid to come on the market, as opposed to all other 
drugs and the classes of drugs, it ought to have an advantage 
over what is--we don't need more opioids on the market, I think 
we agree on that.
    Senator Manchin. Yeah. Yes, we do.
    Dr. Califf. Unless there is something that is really a 
significant advantage. But right now the rule book that we 
referee upon, says if the drug is better for the indication 
than nothing, then it is allowed on the market, and so----
    Senator Manchin. You need language basically saying, if it 
is an improved drug that will perform better than the existing 
drug is, so we will remove the existing drug.
    Dr. Califf. That is right.
    Senator Manchin. Okay. Got it.
    Senator Heinrich. Thank you, Senator. We are going to do a 
quick second round, so if you want to stick around we can have 
some more conversation about this.
    Doctor, I don't want to put you in a situation with regard 
to the Supreme Court decision, but I do want to ask you just 
patently, is mifepristone safe?
    Dr. Califf. You know, I am on the record multiple times 
about this. We stand by the decisions of the FDA over the 
years, and the constant looking at the surveillance data and 
clinical trials as they come in, mifepristone is safe and 
effective for its indication, and we stand by that.
    Senator Heinrich. Thank you. Talk to me about vaccine 
development and HPAI, and I know your role is to approve 
vaccines, but where are we in that process, and if we do have a 
zoonotic transmission to humans; you know, what is our posture 
and are we ready for that?
    Dr. Califf. I would say we are ready, you will notice that 
part of the budget has--sort of separate from the rest of the 
budget, has a pandemic preparedness part of the budget. The way 
I look at it, we are in an enviable position compared to any 
time in the history of the world, Senator Hoeven made--
rhetorically, I think, made the point that pandemics have 
always been around. It is just that now because they used to be 
limited by the fact people didn't travel, now we are on 
airplanes, and as we saw with COVID, it moves quickly from one 
place to another.
    The enviable position we are in now, is we have mRNA 
templates that are platforms that we have confidence in 
already, where what used to be a mystery, how do you make a 
vaccine, by the old method that would take many months, now we 
can do it in just a few weeks to a couple of months, but we 
have got to have the funding to keep the source warm, so that 
we can start up right away.
    Senator Heinrich. That mRNA platform is applicable in this 
case?
    Dr. Califf. Yes, sir.
    Senator Heinrich. Great.
    Dr. Califf. And you know, it is a great thing for many of 
the--viruses are relatively simple compared to other kinds of 
organisms. So coming up with a matching vaccine for the exact 
genetic makeup of the virus is entirely possible in a very 
short period of time. So it is another place, I didn't mention 
NIH before, is a critical player here. The NIH is doing a lot 
of the background work to characterize the virus with its 
excellent virologists, so that we can be ready, working with 
the industry that makes the vaccines.
    Senator Heinrich. Talk to me a little bit about vaping. Why 
are we not making faster progress on the incredible number of 
unapproved vaping products there are on the market?
    Dr. Califf. If you will bear with me for just a minute, I 
would like to sort of go through my thinking on this, because 
it is--I am as frustrated as you are with it, I have to live 
with it every day, and I have relatives that are addicted to 
nicotine. I am from South Carolina, and practice medicine, and 
maybe the seat of the tobacco industry in the past, in Durham.
    So first of all, I do want to point out that we are making 
progress in combustible tobacco, although we are still going to 
lose almost 500,000 Americans this year to tobacco-related 
illness. That and hypertension are the two biggest remediable 
causes of death that we are dealing with, but just as we are 
making that kind of progress with combustible tobacco, along 
came vaping.
    It was 2016, during my first term, that we deemed vaping, 
but we had no idea it was going to result in 26 million 
applications for vaping products. That happened while I was 
away at Alphabet, and I came back to find a Center for Tobacco 
Products full of good, hardworking people, but an overwhelming 
number of applications from an industry.
    I was in Silicon Valley, I must say, the combination of an 
addictive substance called nicotine, with marketing done 
through Silicon Valley techniques, was overwhelming. We had a 
Reagan-Udall Report, we have a new Head of the Center for 
Tobacco Products, Brian King, and we have made tremendous 
progress in this regard. But just as we are getting a handle on 
the basics of vaping, and by the way, at least by the surveys, 
the number of teenagers vaping did decline last year, but it is 
nowhere where it needs to be.
    Just as we are making that progress, along comes the 
Chinese manufacturing of vaping products, and the overwhelming 
vaping products now used by American youth and getting addicted 
is made in China. So can I go one more minute on this?
    Senator Heinrich. Please.
    Dr. Califf. Here, we have products that are not legal to 
sell to Chinese people in China, made in China, and imported 
into the United States in large numbers. Now, the old regime of 
dealing with this, one of you had mention several hundred 
thousand establishments, it is actually a million, because we 
have 300,000 retail stores selling vaping products in the 
United States. If we take our 1,400 investigators, i.e. 
inspectors, and try to have them manage 300,000 vaping 
establishments, that math doesn't work.
    So we have got to stop this at the point of import. So we 
are actively working now with the, you talk about multiple 
agencies, the Justice Department, remember, we can't enforce 
without the Justice Department agreement if we have to go to 
court on these issues. And CBP, the Border Force is very 
important here. So I want to work with you all to come up with 
a way--and you would be amazed if you saw what we have to go 
through to take action with one product coming into the 
international mail facility.
    It is a very complicated legal proceeding because every 
company has a right to defend itself in court from actions that 
we take. I think the circumstance here, where we have a product 
that China won't sell to its own people, being imported into 
the United States to addict youth. We ought to be able to come 
up with a way to say it is pretty simple: When it comes in, 
destroy it.
    And CBP, by the way, can recover the money from the 
importer for an illegal product that is an authority that we 
don't have at the FDA. So we are actively working on that mix. 
I don't blame----
    Senator Heinrich. If you need additional authorities from 
Congress, or additional direction to make sure that we are 
addressing this in a more efficient way, I think you would find 
a very receptive audience.
    Dr. Califf. I wish I could tell you exactly what it is now, 
but we will have a composite view from the Justice Department, 
the FDA, and Border Patrol about what would be most effective.
    Senator Heinrich. The CBP. Yeah.
    Dr. Califf. I want to just cut it off, just not even let it 
in, then we can deal with the vaping industry in the United 
States which has many additional issues, but at least we could 
deal with that.
    Senator Heinrich. Okay. Senator Murray.
    Senator Murray. Mr. Chairman, thank you very much. And 
thank you, Commissioner Califf, good to see you again.
    As I always say every time families head out to the grocery 
store, or sit down for a meal, they are putting their trust in 
the FDA. The health and safety of our Nation depend on the 
world-class experts at FDA who work diligently to protect our 
food supply, address threats like shortages or contaminants, 
and a lot more. The stakes are always high as we saw during the 
infant formula crisis, something I want to see FDA to do more 
to learn from, because no parent should ever worry about 
whether the formula that they feed their baby is safe. So I am 
glad we have this opportunity to talk about the resources your 
Agency needs to fulfill its really important mission.
    Before I start my questions, I also want to say one thing I 
think we both agree on, agree your Agency does not need, and 
that is political interference in FDA's science-driven 
decisionmaking processes. We have seen a number of baseless 
claims and disinformation from anti-abortion activists, and 
some Republican lawmakers which are really threatening to 
undermine FDA's credibility and its authority.
    So let me set the record straight, and Dr. Califf, I hope 
you will continue to as well. Mifepristone is safe, it is 
effective, and that is just not me saying that, it is 
scientists, experts, and decades, decades of data.
    Republican politicians should not be overruling experts on 
science or overruling women about their own health care 
decisions. And at a time when women across the country are 
facing rampant attacks on abortion access, this dangerous 
disinformation is an attack we all can and all should be 
fighting loudly and clearly.
    I just wanted that on the record so thank you, Mrs. 
Chairman.
    Dr. Califf, you, before I got here talked a little bit 
about H5N1 avian flu. This is something that Senator Burr and I 
put together, the Office of Pandemic Preparedness and Response 
Policy, and we got funding for it in the last bill; can you 
talk a little bit about how your Agency is coordinating with 
OPPR and other Federal agencies?
    Dr. Califf. Yes, as we discussed just a few minutes ago, 
OPPR has been a central coordinator of the effort across 
agencies that, you know, have boundaries that have to be 
overcome to work together. So the Agriculture Department is in 
an entirely different sphere than FDA and CDC, which are within 
HHS.
    So there is a daily call, I am actually missing it today 
for this hearing, of the leaders of the--and the top leaders in 
addition to the key people who carry out the operations, where 
what happened the day before is reviewed, what needs to be done 
that day is reviewed, and the long-term plans are made.
    So I am glad that you put together the plan. I just hope 
that the funding is adequate in the future, because as Senator 
Hoeven pointed out, we are going to continue to have outbreaks 
and pandemics for the foreseeable future.
    Senator Murray. Thank you. On cosmetics reform, I was 
really glad that we provided $7 million for the implementation 
of the modernization of Cosmetics Regulation Act of 2022, that 
I negotiated and got signed into law. That bill, for the first 
time, provided much-needed new authority to FDA to make sure 
that families know the products we put on our bodies every day 
are safe. I want to ask you today what steps the Agency has 
taken over the last year to implement those new authorities and 
what resources are requested in your budget for this year?
    Dr. Califf. Well, first of all, thanks for doing that. I 
think it was decades of trying before, this finally happening. 
People tend to think of cosmetics as just something you put on 
your skin for looks, but the skin, you know the quiz of the 
day, the skin is the largest organ in the human body and it 
absorbs what is put on it. And so there is good reason to at 
least know what is in the cosmetics that you are using.
    You know, I am pleased to say we made a decision to put 
cosmetics in the Office of the Chief Scientist under the 
purview of Dr. Namandje Bumpus, who is our Chief Scientist who, 
by the way, I just was pleased to elevate to Principal Deputy. 
She has done such a great job.
    The progress we have made really exceeded what we have 
planned, that is for the first year, which is that we now have 
the listing. So there is a place for the cosmetics companies to 
list that they are on the market, and what is in them, and 
there is also an adverse event reporting system for the first 
time. We were able to capitalize on CDER's Drug Adverse 
Reporting System to put one in quickly.
    We have definitely--this is done on a shoe string and we 
have in the budget we have an $8 million ask to really 
instantiate this office and get to the next level. As you also 
know, there are several Cosmetics that are very worrisome in 
terms of health, where we have to do a lot of work in order to 
take the kind of actions that are needed to protect health, and 
we need a budget to make sure those things can be done.
    Senator Murray. Thank you. And this is something really 
important to me, so I appreciate the work that this committee 
did on that. I understand that the proposed Unified Human Foods 
Program continues to make its way through the administrative 
process. It has been well documented that these reforms are 
overdue, FDA's regulation and enforcement of Food Safety 
Standards on issues ranging from bacteria in vegetables, to 
arsenic in baby food are really critical. What is your Agency 
requesting in fiscal year 25, for implementation of the 
reorganization?
    Dr. Califf. Well, in this budget we are asking for an 
additional $15 million, and I honestly regard that as a hope 
for a down payment. I think you will--if you go to the Reagan-
Udall Report you will see beautiful graphs, although they are 
somewhat depressing, of the funding of the drug and the medical 
product side of the FDA.
    Thanks to the user fees it is, you know, meeting the mark. 
It could always be better, but the food side of the FDA has 
been increased but well below the even the cost of living 
inflationary increase at a time when the food's industry is 
increasingly complex, global, interdigitated with many issues.
    So part of what we are doing in the reorg is to create a 
budget where you can really see exactly what is the money being 
spent on. I recognized when I came in, when I asked for the 
budget on the medical product side, it was really clear because 
the user fees institute a businesslike process, whereas on the 
food side, there was a lot of intermixing in ways that were 
harder to depict.
    I think when you all see the places where it is needed, and 
I will just point to two examples that I think are really 
critical. We all know that, you know, we are in a global 
environment where more and more things are getting into the 
food in the way of chemicals. We chose Jim Jones to be our 
leader of the Human Foods Program. He has a history in the EPA 
of dealing with chemical contamination.
    We had, basically, a tiny little crew of people working on 
that, on the food side of the FDA. So as you see what is at 
stake and what needs to be done, I hope that will make clear, 
you know, what funding is needed, and also give you a way to 
make sure when you invest money that you can actually see what 
is being done.
    The other one that is enormous is nutrition. We talk about 
three pillars of risk, obviously microbial which everyone 
understands, chemicals which are of great concern, but our 
biggest cause of death and disability from food is actually bad 
nutrition, and we have got this tremendous epidemic of obesity, 
diabetes, cardiovascular disease, and cancer emanating from all 
that in a setting in which our tools on the nutrition side are 
very limited.
    So we are going to have a Center of Excellence in 
Nutrition, nested in that is going to be the Critical Foods 
Group that was mandated in FDORA that will deal with infant 
formula and medical foods. So hopefully this will all clarify 
where the money is actually going to be useful, as opposed to 
just asking for money based on a broad concept.
    Senator Murray. Okay. Thank you. Thank you very much. And 
Mr. Chairman, thank you for the extra time.
    Senator Heinrich. Ranking Member Hoeven.
    Senator Hoeven. Thanks Mr. Chairman. So Senator Peters and 
I are working on some legislation in regard to infant formula. 
He is really coming at it from the safety, and I am coming at 
it from adequacy, so we want to make sure it is helpful to you, 
doesn't impose costs and restrictions, and it would be 
counterproductive. Do you have any specific thoughts in regard 
to that?
    Dr. Califf. The safety side is pretty straightforward, as 
you know, and there is just some things that we need. And again 
just to reemphasize, as I learned at my high school reunion, 
people think the FDA has magical powers to just march in and 
force people to----
    Senator Hoeven. And at the reunion you told them in fact 
you did.
    [Laughter.]
    Dr. Califf. No. I was asking for sympathy.
    Senator Hoeven. Okay.
    Dr. Califf. So the safety side is--well, you know, we just 
need a few more things that would require that first line of 
defense that we always depend on, which is the industry doing 
what it should do, and our checking to make sure they are doing 
what they should do. On the adequacy part it is really 
complicated, and I would just say, I look forward to working 
with you. I have ideas, it is very complicated by the WIC 
Program, and the way the states purchased the formula.
    Many of us believe that the industry is too concentrated in 
a few companies.
    Senator Hoeven. Yeah, right.
    Dr. Califf. But it also turns out if you look globally, in 
every country, they are just a couple of companies that 
dominate in each company, and we have programs now to entice 
people into the market, but if half the market in every state 
is WIC, it is very hard for new entrance to actually get a 
foothold and have enough sales.
    So these are daunting problems, and we would love to work 
with you. It is not our primary responsibility, but we 
obviously have opinions, and it affects us when it is not 
working.
    Senator Hoeven. Yeah. Right, that is what we want to do. 
Drug shortages in your opinion what is the greatest challenges 
you face in this space, and you know, how can we improve that?
    Dr. Califf. The answer is kind of similar. But let me break 
it in half. We have a set of things that I regard as a hole 
plugging activities, that is our primary issue there, when we 
know of an impending shortage, and there are over 200 per year 
happening now, we have a set of maneuvers we can do that are 
much like you would do if you were in a town and the grocery 
store was going out of business, you need to find another 
grocery store.
    We get on the phone. We go to all resources to find 
alternatives either to produce the same product or a drug that 
is equivalent. And we need some help there from you all in 
filling in the holes in our knowledge base that would enable us 
to put together what we need to plug the holes much more 
efficiently. And we have asked for an additional $12 million in 
the budget for analysts and people to, basically, anticipate 
when shortages may occur, so we can preempt. We are successful 
in preempting about 80 to 90 percent of the shortages, but we 
still have too many that are occurring.
    But part two is actually the big deal, and it is very much 
like what I said about the formula. We have a market failure, 
and it is very hard to--just to quickly go through this--it is 
really important to understand that we have two industries 
essentially with some overlap, but two industries in the 
pharmaceutical arena. The innovator industries make patented 
drugs which have protection from patents from competition.
    Senator Hoeven. Right.
    Dr. Califf. I believe the price is too high there. I know 
there are different opinions about that, but let us just say 
that the profits are good, and there is every incentive for the 
companies to make every drug they can sell because they make 
money.
    Ninety-five percent of our prescriptions now are generic 
drugs, and they are essentially copies of the innovator drug 
after the patent is over. It is simple way to think about it. 
The prices there are too low, our generic prices are actually 
lower than Canada and Europe, and so the shortages we are 
seeing, the probability of a shortage is directly related to 
how low the price is.
    Now, I am a capitalist American, just put yourself in the 
shoes of a CEO and say, you can either make a drug that is 
going to make a big profit for your company, or you can make a 
drug where you are guaranteed to lose money because the price 
is too low, which one are you going to do?
    So the companies, even in India, where the cost of labor is 
so low, they are telling us they can't make and distribute the 
product at the price they are getting. And in the middle of all 
this, in America of course, is the middleman, the GPOs and 
PBMs, which I know you all have been talking about, they are 
not regulated by anybody right now, basically, and this is an 
area where work needs to be done.
    It is not my job to say exactly what should be done. Of 
course I have ideas, like I do about infant formula, but unless 
we fix the market failure, we at FDA are going to be expending 
more and more energy just plugging holes in the system that we 
could have predicted were going to happen in the first place. 
But we can't tell anyone to make a drug, we can't--we don't 
make the drugs ourselves, so we are just trying to line up the 
people that do make them, in a way that can be successful.
    Senator Hoeven. I want to follow up with you on that 
disparity, in terms of the pricing between, you know, the new 
name brand patent-protected drug and the generic. I have not 
heard that point on the generic before, so that is interesting. 
I think it is something we will try to follow up with you and 
understand better. But I think the drug shortage is important, 
we want to find ways to address it that are actually effective 
for consumers, and don't create you know market distortions or 
burdens.
    Dr. Califf. If I may, I would refer you to an HHS Report 
that came out just a few weeks ago, that goes through this in 
great detail, and I think if your staff reads it, that they 
probably already have, but get a briefing on it because I think 
it will give you a lot of insight into what is happening here. 
I mean, I am personally traveling over to India to--because we 
are very dependent now on foreign manufacturing of these 
products because there is not enough American----
    Senator Hoeven. Which is a concern as well?
    Dr. Califf. Yeah. It should be.
    Senator Hoeven. Thank you.
    Senator Heinrich. Senator Manchin.
    Senator Manchin. Very carefully--very quickly on that. Do 
we produce any antibiotics here in America? Someone told me a 
strep throat could take us down.
    Dr. Califf. Not many.
    Senator Manchin. Has the alarm been raised why we should 
have some manufacturing producing the necessities for us just 
off the basic?
    Dr. Califf. I feel like from the day I came into this job, 
this time, I have been screaming and shouting from the 
rooftops. But I mean, as you know, Senator, you have had family 
in the generic drug business.
    Senator Manchin. Right. Well, they were told--well, they 
had to close down the plant because they had too many drugs 
they were producing.
    Dr. Califf. Right. I mean, your cost of labor in West 
Virginia is competitive. I will just say.
    Senator Manchin. Yeah.
    Dr. Califf. And yet still, couldn't keep that going.
    Senator Manchin. And they were taken down because of FDA, 
they were--back then it just made it impossible because they 
have so many drugs they were producing. They are producing 
those by the billions now, but we don't do any of that anymore. 
I just think it is a horrible situation. And I have talked to 
Secretary Becerra about this, and basically getting--we have 
manufacturers who want to get back in business in making that 
and stockpiling it so we do have it here in America made.
    The other thing I want to mention to you. On December 22nd, 
2022, which was basically the fiscal year 2023 Omnibus Bill 
that we passed, it included my FREED of Opioids Act, which 
requires FDA to review how they approve new opioid drugs. So 
that is in the law. Okay.
    Now, also May 26th of that same time, and right now it is 
the SUPPORT Act it passed the HELP Committee. And the SUPPORT 
Act, I think does what you wanted, it was myself and Senator 
Braun, it is ensuring the FDA fully examines Clinical Trial 
Impact and Vitalness Before Endorsement Act, which is the 
EFFECTIVE Act, which would allow the Food and Drug 
Administration to deny a new drug application for an opioid 
analgesic drug, on the basis of the drugs not being clinically 
superior to other commercially available drugs. Would that 
help?
    Dr. Califf. That bill we have----
    Senator Manchin. And that bill has gone through the gambit, 
we have just got to attach it to something right now.
    Dr. Califf. Yeah. We will have to get with your staff--
there are always details in these things.
    Senator Manchin. Well, Audrey will be happy to reach out to 
you.
    Dr. Califf. The basic concept is one--you know, this is an 
exception to the rule for opiates, but I think the destruction 
of and deaths that you have talked about merit it in this case.
    Senator Manchin. Sir, what is happening? Is this, I mean, I 
understand the lobbying force up here, you know, and Big 
Pharma, and all that, but the bottom line is, there is a lot of 
drugs we depend on, and I support them a thousand percent. This 
is one I never grew up with it, I never had, and these things 
weren't on the market when I was a kid. I got taken care of 
pretty good. When I was in the hospital, if I ever went to the 
hospital they took care of me, what I needed.
    When I got out of the hospital I couldn't get--if I still 
liked what they gave me in the hospital, I couldn't get 
anywhere else; so all of a sudden. And we know the history on 
that one. But we have a couple of things here we would like to 
work with you on. And I think you might have some powers 
already, and we are trying to give you more let us make sure 
this other one is done the right way. Okay. Thank you, sir.
    Senator Heinrich. Senator Hyde-Smith.
    Senator Hyde-Smith. Thank you, Mr. Chairman.
    The gulf shrimp industry is very important to Mississippi, 
Dr Califf, and right now because of bad actors in other 
countries Mississippi shrimpers and processors don't know if 
they are going to survive another season, and this is a real 
situation. I was on the coast night before last in Mississippi, 
and the primary reason for this is that many foreign countries 
unfairly subsidize shrimp production and dump shrimp on to the 
market at prices that domestic producers can't compete with 
because we do not subsidize.
    Ecuador is one of the primary bad actors, and shrimp 
imports from Ecuador are growing faster than imports from any 
other country. It is also important for inspection of imported 
shrimp to be robust, especially during times like these when 
gulf shrimpers are struggling so much with unfair trade 
practices.
    I was happy to see that in August 2023 FDA signed a 
regulatory partnership agreement with Ecuador to strengthen 
food safety and shrimp intended for the U.S. market. This is 
important both for public health and for the future of our 
domestic shrimp industry. Domestic shrimpers should not have to 
compete with unfair trade practices, but they should especially 
not have to compete with shrimp riddled with illegal or 
dangerous chemicals and drugs.
    What percentage of imports from Ecuador has FDA inspected 
since this arrangement was signed and have any imports been 
refused to your knowledge?
    Dr. Califf. Sorry. I would have to get back with you on the 
exact numbers, but I sure agree with you that first of all, you 
all gave us additional funding to implement programs like this. 
We have to keep foreign imports to the same standards that we 
have in the U.S., and the more we can get these countries to do 
a good job on their own, the better off we are going to be in 
terms of using our resources to double-check and make sure 
things are okay.
    So the agreement with Ecuador is the first of three that we 
hope to have. The other two big importers are India and 
Indonesia, very similar issues there. You are right, over 90 
percent of our shrimp that we eat now is imported. Personally 
when I eat shrimp and grits, as we discussed last year, it is 
South Carolina or North Carolina shrimp are my preference, but 
I put Louisiana and Mississippi right up there too.
    And I agree with everything you said about needing to 
fortify the industry here. As you all know we don't--our remit 
is not within the economics of the industry, we have to 
regulate whatever the economics are dictating, but we do have 
this obligation that you are refer to keep the chemicals out. 
But we will get back to you with the details of the number of 
inspections, and what has been done in the way of detecting 
things, and preventing them from getting into the country, if 
they are not up to snuff.
    Senator Hyde-Smith. Thank you. That would be very much 
appreciated.
    Thank you, Mr. Chairman.
    Senator Heinrich. I want to thank you, Commissioner Califf, 
for being here today. And I look forward to working with you, 
and the members of this committee, as we work through this 
year's Appropriations process.

                   ADDITIONAL SUBCOMMITTEE QUESTIONS

    For members questions for the record are due by next 
Wednesday, the 15th of May. And we would appreciate responses 
back from FDA within 30 days.
             Questions Submitted by Senator Martin Heinrich
                           cessation products
    Question. Last year, on June 1, 2023, at a Cancer Moonshot event at 
The White House, Commissioner Califf acknowledged some of the 
challenges those seeking to bring forward new cessation products may 
encounter and said that there are things that FDA is trying to do to 
reduce the ``friction'' related to bringing forward medical products in 
this space.
    Answer. Please see response to next question.
    Question. What actions, if any, has CDER taken since Dr. Califf 
made these comments last year with respect to helping to bring forward 
new, innovative smoking cessation medicines for patients and their 
doctors and/or reducing the ``friction'' he referenced? What new 
actions does CDER plan to take, if any, in addition to the guidance 
previously issued?
    Answer. As smoking results in many serious or life-threatening 
conditions (e.g., heart and lung disease and cancer), FDA recognizes 
there is an unmet need for novel therapies particularly for individuals 
who have not been able to quit despite available therapies.
    Because we consider nicotine dependence to be a serious or life-
threatening condition with an unmet medical need, we are encouraging 
development of novel smoking cessation drug therapies that show benefit 
over existing products by outlining how to qualify expedited 
development pathways such as fast track, breakthrough, and priority 
review.
    In May 2023, CDER finalized the draft guidance Smoking Cessation 
and Related Indications: Developing Nicotine Replacement Therapy [NRT] 
Drug Products.\1\
---------------------------------------------------------------------------
    \1\ https://www.fda.gov/regulatory-information/search-fda-guidance-
documents/smoking-cessation-and-related- indications-developing-
nicotine-replacement-therapy-drug-products
---------------------------------------------------------------------------
    The NRT Guidance outlines strategies for applicants to make NRT 
development easier, efficient, and streamlined:

  --Clarifying the appropriate pathways for companies that seek 
        approval for a product that alters the route of administration 
        compared to approved NRT drug products, e.g., products with 
        pulmonary route of administration rather than an oral route of 
        administration.

  --Explaining when simplified efficacy study requirements may be used 
        (e.g., recommending a 4-week study as the minimum period of 
        efficacy ascertainment).

  --Clearly outlining abbreviated pathways for NRT products, including 
        how to use FDA's previous findings of safety and how already 
        approved NRT products and published literature can be 
        leveraged.

  --Encouraging sponsors to consider expedited development and review 
        pathways, as well as providing details on how to qualify.

    In addition, because the data are so strong in demonstrating that 
quitting smoking can lower a person's chance of having lung disease, 
heart disease, and certain types of cancer, drug products that have 
been demonstrated to be effective for cessation are approved with 
labeling claims regarding these benefits without additional data 
supporting benefit of the particular product on these outcomes.
    To support the majority of smokers who wish to quit and to increase 
utilization of cessation products and interventions, FDA and the 
National Institutes of Health (NIH) are collaborating to identify 
opportunities for the development of novel therapies, support 
innovative trial designs, and facilitate product development for 
smoking cessation therapies. Opportunities for innovation exist in many 
areas including collaboration with researchers to help identify novel 
targets, use of innovative clinical trial design and conduct, inclusion 
of individuals underrepresented in research, developing a better 
understanding of quit failures and relapse, and utilizing FDA's 
expedited programs for medical product development.
    To this end, FDA will hold a joint public meeting with NIH this 
fall to discuss innovations in development of smoking cessation 
products, and we anticipate the Federal Register notice for that 
meeting to be announced in the near future.
    Question. Smoking cessation products have been approved for 
decades. Why does FDA believe patients seeking to quit with available 
smoking cessation medicines are not more successful in their quit 
attempts?
    Answer. Nicotine is a highly addictive substance, making nicotine 
dependence a very challenging condition to treat. The reasons for low 
success quit rates include multiple factors unrelated to availability 
of safe and effective smoking cessation products, such as weight gain, 
lack of access to effective therapies due to financial hardship, 
exposure to other smokers and secondhand smoke, loss of an ability to 
manage stress, and comorbid alcohol and other substance use disorders.
    Unfortunately, less than one-third of smokers who try to quit use 
counseling and FDA-approved smoking cessation drug products, which is 
one potential area for intervention. That is why we have worked to 
improve access by making so many of these products available in the 
nonprescription setting via the prescription to nonprescription switch 
pathway.
    FDA's 2023 Nicotine Replacement Therapy (NRT) Guidance contemplates 
the need to get novel therapies directly in the hands of consumers in 
the nonprescription setting, without going through development as a 
prescription product first. As such, we outline pathways to get 
approval direct to over-the-counter (OTC), which reduces potential 
hurdles for access, and work with manufacturers to get novel products 
over the goal line for approval. It also outlines abbreviated pathways 
for NRT products, including how to use FDA's previous findings of 
safety and how already approved NRT products and published literature 
can be leveraged. Finally, the NRT Guidance encourages sponsors to 
consider expedited development and review pathways and provides details 
on how to qualify for this review.
    Question. Does the agency agree new smoking cessation therapies are 
needed to help patients be more successful in their quit attempts? If 
so, what new actions will CDER take to expand and improve treatment 
options for smokers seeking to be more successful in their quit 
attempts.
    Answer. Please see response to previous question.
    Question. Does CDER see an opportunity to modernize the regulatory 
framework for nicotine replacement therapies to better balance public 
health benefits with real-world experience akin to FDA's approach to 
the development of therapies to treat simulant use disorders?
    Answer. Nicotine use disorder and other substance use disorders 
(e.g., opioid use disorder) are very different, even though they fall 
into the same general category of addictive disorders.
    In the case of smoking cigarettes, we are concerned primarily with 
long-term health effects. There are limited and mixed data on whether 
reduction in smoking short of cessation leads to net positive clinical 
outcomes, while smoking cessation is associated with demonstrated 
positive clinical outcomes. However, we are eager to work with sponsors 
and other stakeholders to advance scientific understanding of novel 
endpoints demonstrating meaningful reductions in harms associated with 
smoking. These differences make shorter-term endpoints regarding 
reduction in use more clinically meaningful in the case of, for 
example, opioid use disorder than in the case of nicotine use disorder.
    In general, different substance use disorders have different 
mechanisms of action and clinical effects that may lead to differences 
in clinical presentation and responses to treatment. As a result, study 
designs, patient populations, and endpoints may differ across 
therapeutic areas targeting different forms of addiction.
    Question. Does FDA see a path for additional endpoints that reflect 
a more realistic experience with the challenges individuals, and their 
clinical teams, are experiencing in quitting nicotine and which 
reflects the real-world realities of the staggering public health toll 
smoking continues to take in our country? If so, what steps is FDA 
taking to encourage discussion with developers on such endpoints?
    Answer. FDA's 2023 Nicotine Replacement Therapy (NRT) Guidance 
provides recommendations to sponsors in the clinical development of NRT 
drug products intended to help cigarette smokers stop smoking 
cigarettes or maintain abstinence from smoking. While the guidance 
reflects FDA's current thinking on the topics it covers, it does not 
bind sponsors or the FDA. FDA encourages sponsors that wish to discuss 
their drug development program to request a meeting with the 
appropriate review division. Each year, FDA review staff participate in 
many meetings with requesters who seek advice relating to the 
development and review of investigational new drugs and biologics, and 
drug or biological product marketing applications. FDA reviews New Drug 
Applications (NDAs) based on the best available science as applied to 
the data submitted in the NDA.
    Question. What steps is the Commissioner taking to make sure that 
CDER's approach to the regulation of cessation medicines is keeping 
pace with the ongoing unmet clinical needs and public health urgency in 
helping patients be more successful in their quit attempts? Please 
specify the timeline for such action underway and or planned for the 
future. Please also specify the metrics the agency is using to track 
progress against these actions.
    Answer. As referenced our prior responses, we are encouraging 
development of novel smoking cessation drug therapies that show benefit 
over existing products by outlining how to qualify expedited 
development pathways such as fast track, breakthrough, and priority 
review.
    Additionally, it is important to note that FDA does not develop 
drugs. Historically, FDA has seen limited interest from sponsors in 
developing NRT products and we have not seen a recent change. All New 
Drug Applications (NDAs) are subject to the performance goals and 
procedures for the Prescription Drug User Fee Act (PDUFA VII) 2023-
2027. Please see the PDUFA VII commitment letter for more 
information.\2\ The goals letter represents the product of FDA's 
discussions with the regulated industry and public stakeholders, as 
mandated by Congress.
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    Question. What metrics does FDA believe Congress should use to 
measure the agency's progress in advancing smoking cessation 
therapeutic innovations and, ultimately, helping smokers be more 
successful in their quit attempts?
    Answer. Please see response to previous question.
               foreign manufacturer tobacco registration
    Question. In 2009, Congress required under the Tobacco Control Act 
that the FDA publish a rule requiring foreign manufacturers to register 
with the FDA if they wanted to sell tobacco products in the U.S.
    It has been more than a decade--since the 2012 Unified Agenda to be 
exact--since FDA first told us it would issue the foreign manufacturer 
registration rule--so companies like those in China--could not import 
products unless they were registered. Earlier this year--in the latest 
Unified Agenda, FDA again pushed the date for a proposed rule.
    When will FDA publish this rule?
    Answer. The Center continues to weigh competing priorities given 
available resources and updates the policy agenda annually. In the 
meantime, FDA receives information about foreign manufacturers as part 
of the premarket tobacco product application (PMTA) process. A PMTA 
must include information including a full statement of the components, 
ingredients, additives, and properties, and of the principle or 
principles of operation and a full description of the methods used in, 
and the facilities and controls used for, the manufacture, processing, 
and when relevant, packing and installation. This is true for 
applications from both domestic and foreign manufacturers.
                         tobacco product expos
    Question. In February of this year, the Total Product Expo took 
place in Las Vegas, NV. The Expo's purpose was to showcase vapor 
products to independent retailers.
    I understand you were made aware of the potential for illicit 
manufacturers attending and participating in this expo ahead. I also 
understand that, even though FDA was present at the expo, they did not 
seem to take any actions regarding these illegal products.
    Why did you refuse to act after FDA was present and witnessed this 
illegal activity? Do you plan to take action against any of the 
manufacturers who were selling illegal product at the Las Vegas expo?
    Answer. Tobacco industry trade events and industry conferences are 
one way for CTP to engage with stakeholders and monitor the 
marketplace. This engagement with industry provides an opportunity to 
gather information on shifts in the tobacco product market, marketing 
techniques, and novel products. As has been the case in the past few 
years, CTP staff attended the Total Product Expo in 2024. However, CTP 
did not attend a similar expo in Miami in 2024.
    Following the May 8th hearing, CTP attended the Houston expo in 
June. CTP makes decisions about which events to attend on a case-by-
case basis depending on a consideration of factors, including available 
resources.
    We collect information during these types of events; we take action 
based on the specifics of an investigation. The information gathered at 
this type of event, along with other information received through 
monitoring the marketplace, including inspecting manufacturers, 
distributors, or importers; compliance checks of tobacco product 
retailers; monitoring and surveillance of a tobacco product 
manufacturer's or retailer's website; and reports submitted by the 
public or other interested stakeholders, help to inform compliance and 
enforcement efforts, which could include potential actions. FDA does 
not publicly disclose enforcement strategy or discuss potential future 
enforcement activities.
    Question. There was a similar E-vapor product expo in Miami, FL on 
March 14-16, 2024. Was FDA aware of this expo? Did FDA send enforcement 
agents or any other FDA personnel? Were there any enforcement actions 
taken at the Miami expo?
    Answer. Please see response to previous question.
    Question. There is an Alternative Product Expo show coming up in 
Houston in June. Will FDA be present at this show. Can you commit to 
taking action against any manufacturers who are present and are 
exhibiting illegal products?
    Answer. Please see response to previous question.
                            dora class drugs
    Question. We understand that FDA is waiting for DEA to ask them to 
conduct their 8 Factor Analysis for the DORA Class. Is there anything 
FDA can do in the meantime to prepare?
    Answer. The Drug Enforcement Administration (DEA) is the lead 
agency for scheduling under the Controlled Substances Act (CSA). With 
the exception of some general information provided in the responses to 
Questions 14, 16, and 17, any questions regarding the process for CSA 
scheduling (including the removal of a drug or other substance from the 
schedules), or the current status of a particular drug scheduling 
evaluation, should be directed to the DEA.
    Question. How does FDA's 8 Factor Analysis overlap with DEA's own 8 
Factor Analysis? If there are differences, how are they reconciled?
    Answer. While DEA is the lead Federal Agency responsible for 
regulating controlled substances and enforcing the Controlled 
Substances Act (CSA), HHS has a number of responsibilities under the 
CSA, several of which are performed by FDA on behalf of HHS.
    As a part of this work, FDA provides scientific and medical 
recommendations to HHS about the appropriate controls for controlled 
substances. To make this recommendation, FDA's Center for Drug 
Evaluation and Research, including the Controlled Substance Staff 
(CSS), is responsible for preparing the ``eight-factor analysis'' (or 
8FA), in consultation with the National Institute on Drug Abuse (NIDA), 
that serves as the basis for the scheduling recommendation to HHS and 
DEA.
    When requested by DEA pursuant to 21 U.S.C. 811(b), the CSA 
requires HHS to conduct a ``scientific and medical evaluation,'' under 
which the following eight factors set forth 21 U.S.C. 811(c) must be 
considered with respect to the drug or other substance proposed to be 
controlled or removed from the schedules:

  --Actual or relative potential for abuse

  --Scientific evidence of pharmacological effect

  --Current scientific knowledge regarding the substance (including 
        whether the substance has a currently accepted medical use in 
        the U.S.)

  --History and current patterns of abuse

  --Scope, duration, and significance of abuse

  --Risk to public health

  --Psychic or physiological dependence liability

  --Whether the substance is an immediate precursor of a substance 
        already controlled

    The circumstances and relevant data sources may differ for the 
particular substance under evaluation for drug scheduling 
considerations, e.g., for drugs proposed under a new drug application. 
Such circumstances include where such drug may warrant scheduling under 
the CSA, or drugs or other substances emergent in patterns of 
nonmedical use and drug abuse, or drugs that are subject of a petition 
submitted to DEA that requests a particular drug scheduling action. At 
the time of a DEA request for FDA to conduct an 8FA for an emergent 
substance of concern, DEA typically will provide FDA with law 
enforcement and drug seizure data, and sometimes also with basic 
pharmacological data from studies they have conducted (e.g., under 
agreements or contracts). For petitions submitted to DEA, DEA may 
provide supplementary law enforcement and seizure data in referring a 
petition to FDA with an 8FA request. For drugs that are subject of a 
petition to DEA or a drug application submitted to FDA, the petitioner 
or applicant will have responsibility to provide some of the data 
relevant under the Eight Factors.
    Some of the data gathering from these various sources can occur 
concurrently, but the totality of data must be considered by FDA during 
our process of conducting an 8FA.
    The drafted 8FA and the recommendation on scheduling are 
transmitted from FDA's Office of the Commissioner to the HHS Office of 
the Assistant Secretary for Health, and then from HHS to DEA. It is DEA 
that, after reviewing the HHS documents and recommendation, makes the 
final determination of whether to initiate rulemaking proceedings to 
control a drug or other substance or remove it entirely from the 
schedules in accordance with 21 U.S.C. 811(a)-(c).
    Question. Can DEA and FDA do their 8 Factor Analysis concurrently?
    Answer. Please refer to the response to previous question.
    Question. What is the typical process FDA goes through to conduct 
an 8 Factor Analysis? How long will it take; Is there a way to speed it 
up; What happens once it's complete; What if DEA has a reason to 
disagree with it; Then what?
    Answer. Please refer to the response to previous question. Based on 
differing circumstances and data availability for the drugs or other 
substances under evaluation, there is considerable variability in the 
time it may take to proceed through the administrative review process. 
Scientific and medical findings made by HHS are binding on DEA. The 
agencies also may communicate as necessary under our Memorandum of 
Understanding to discuss data, viewpoints, or process matters for 
pending drug evaluations.
    Question. Does FDA consider any other agencies' interest, such as 
NIH, when completing the 8 Factor Analysis?
    Answer. Please refer to the response to previous question. Also, 
please note that FDA always shares a drafted 8FA with colleagues at the 
National Institute on Drug Abuse (NIDA), and seeks their concurrence on 
our scientific and medical findings before transmitting documents to 
the HHS Office of the Assistant Secretary for Health (OASH). When the 
8FA and scheduling recommendation are transmitted from FDA to OASH, 
NIDA is also welcome to share any additional input with OASH at that 
time if they so choose.
                        artificial intelligence
    Question. Commissioner Califf, artificial intelligence (AI) is 
dramatically impacting every aspect of our lives, including the field 
of drug development, and it is critical that the FDA is prepared to 
address AI-related issues in a systematic way. I note that in May of 
2023, the Drug and Device Centers at FDA published a discussion paper, 
``Using Artificial Intelligence & Machine Learning in the Development 
of Drug & Biological Products,'' that aimed to foster dialogue on the 
use of AI and machine learning in drug and biological product 
development.
    Is the FDA planning to establish an FDA-wide team to serve as a 
centralized point of entry for early-stage drug developers? By doing 
so, this would allow developers to receive specific agency guidance on 
the utilization of artificial intelligence modes and techniques that 
fall within the scope of the agency's regulatory authorities, as well 
as provide clarity on whether proposed uses do not require any agency 
oversight or review.
    Answer. FDA has taken significant steps to coordinate a cross-
center approach to regulating AI in drug development, as recently 
outlined Artificial Intelligence & Medical Products: How CBER, CDER, 
CDRH, and OCP are Working Together. FDA is in the process of forming a 
team of internal experts focused on AI in drug development. However, a 
centralized, FDA-wide AI team might not be the optimal entry point for 
drug developers, as working with the appropriate review team with 
relevant experience on the particular type of product would likely be 
more efficient.
    Such a team might coordinate with staff possessing AI expertise 
that is relevant to the AI model being proposed.
    FDA maintains open channels for engagement with industry on using 
emerging technologies in drug development. There are various mechanisms 
to engage with the Agency depending on how the sponsor intends to use 
the AI model; for example, a sponsor could request a formal meeting, 
attend an FDA program, or utilize a specific Agency pathway.

                                 ______
                                 

              Questions Submitted by Senator Jeff Merkley
                            tobacco products
    Question. Under a Federal court order, the FDA had from September 
9, 2020, to September 9, 2021, to review premarket tobacco product 
applications (PMTAs) for e-cigarettes.
    However, after more than 2.5 years, the FDA has not met the 
deadline to complete its review of these products. FDA also failed to 
meet its own deadline to finalize the review of e-cigarettes with a 
large market share by the end of last year.
    In the FDA's most recent filing with the court, the FDA indicates 
that it will not complete its review of large market share products 
until June of this year.
    In 2023, 7.7% of students or more than 2.1 million youth reported 
the use of e-cigarettes and more than 25% of youth e-cigarette users 
use an e-cigarette product every day.
    Studies have also found that young people who use e-cigarettes are 
more likely to become smokers, and many are low-risk youth who would 
not have otherwise smoked cigarettes.
    Why is the FDA taking so long to complete its review of product 
premarket tobacco applications (PMTAs) for e-cigarettes and why has it 
been unable to meet its own deadlines?
    Answer. To date, FDA has received PMTAs for nearly 27 million e-
cigarette products, and has resolved over 26 million. The PMTAs that 
FDA has received have included applications for nearly one million non-
tobacco nicotine products from more than 200 applicants. These 
determinations also include agency action on applications for 99.5 
percent of the larger market-share products, the applications for which 
are generally the most voluminous and complex.
    Due to the unprecedented number of applications submitted for 
premarket review as well as the large number of applications moving 
through review at the same time, the finite nature of our review 
resources, and the necessarily rate-limiting effects of ensuring 
consistency across reviews, among other things, this process takes 
time.
    FDA must also ensure review decisions are legally defensible and 
consider all submitted information. Amendments submitted by applicants 
during the review process and outcomes in litigation that impacts our 
approach are two examples of the many internal and external factors 
that can significantly impact review timelines. These issues can 
lengthen the review timeline and impact review resources. Despite these 
factors, FDA remains committed to working as expeditiously as possible 
to resolve pending applications.
    Since youth use of e-cigarettes peaked in 2019 at 5.3 million kids, 
youth use of these products has declined substantially. The 2023 
National Youth Tobacco Survey (NYTS) shows further progress, with an 
estimated 2.1 million kids who were using e-cigarettes in 2023, which 
includes 580,000 fewer U.S. high school students using e-cigarettes 
since 2022. More recent 2024 NYTS data \27\ shows that another half a 
million fewer U.S. youth reported current use of e-cigarettes in 2024 
compared to 2023. This decline is a good public health outcome, as well 
as a positive reinforcement of the work that has been done and that the 
Agency will continue to do as it strives for additional progress on 
this issue.
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    Question. Will the FDA commit to finalizing all reviews for pending 
large market share products by the agency's current June deadline?
    Answer. At this time, FDA has taken action on 99.5 percent of the 
Covered Applications. FDA remains committed to making determinations on 
all remaining applications, including the Covered Applications, as 
expeditiously as possible, while ensuring the decisions are 
scientifically accurate, legally defensible, and aligned with the 
authorities granted by Congress.
    Question. On June 23, 2022, FDA issued a marketing denial order for 
several of JUUL's e-cigarette products, after it found that JUUL's 
premarket tobacco product applications (PMTAs) lacked sufficient 
evidence to demonstrate that marketing of the products would be 
appropriate for the protection of public health.
    However, on July 5, 2022, the FDA issued an administrative stay of 
its marketing denial order, saying there were scientific issues that 
warranted further review of JUUL's application.
    FDA's re-review of JUUL's application has been going on for almost 
2 years, and during this time, JUUL has been allowed to keep its 
products on the market.
    Recently, FDA indicated that it would complete the review of all 
large market share e-cigarette products by June 2024.
    JUUL is the brand most responsible for fueling the youth e-
cigarette epidemic, and, according to FDA and CDC data, JUUL was the 
fourth most popular brand with youth in 2023.
    All JUUL e-cigarettes also have a high level of nicotine. According 
to the manufacturer, a single JUUL pod contains as much nicotine as a 
pack of 20 regular cigarettes.
    Will FDA complete an additional review of JUUL products by June, 
which is its deadline to complete the review of all large market share 
e-cigarette products?
    Answer. Following the May 8th hearing, in June 2024, FDA rescinded 
the marketing denial orders (MDOs) issued in June 2022 to JUUL Labs, 
Inc. This action was taken, in part, as a result of new case law, as 
well as FDA's review of information provided by the applicant. 
Rescission of the MDOs is not an authorization or a denial and does not 
indicate whether the applications are likely to be authorized or 
denied. Rescission of the MDOs returns the applications to pending 
status, under substantive review by FDA. The Agency's regulations 
significantly limit what FDA can disclose regarding the content of 
pending applications.

                                 ______
                                 

               Questions Submitted by Senator Joe Manchin
                          eerw clinical trials
    Question. Last year, on April 19, 2023, the FDA held an Advisory 
Committee meeting on opioids, in particular the questionable clinical 
trial practice known as ``enriched enrollment''.
    The enriched enrollment or EERW process has made it significantly 
easier for the FDA to approve opioids and allow for broad marketing to 
the public. The process removes patients with pre-existing opioid 
sensitives from clinical trials, instead of sticking with traditional 
double-blind studies. This has skewed results and seriously 
underestimates risks associated with the proposed drug involved in the 
clinical trial.
    The Advisory Committee last year expressed concerns during the 
meeting about if EERW is able to really address whether an opioid is 
better than a non-opioid.
    What has FDA done in response to concerns raised regarding the use 
of EERW clinical trials?
    Answer. As you note, on April 19, 2023, FDA held a meeting of the 
Anesthetic and Analgesic Drug Products Advisory Committee to discuss 
how to evaluate long-term efficacy of opioid analgesics and the risk of 
opioid-induced hyperalgesia with a focus on proposed clinical trial 
designs to research these issues, including EERW trial designs. There 
were detailed presentations on, and discussions of, the advantages and 
limitations of EERW trial designs in this context. FDA is currently 
considering the experts' recommendations and other available evidence 
and data, and the Agency agrees that it is important to continue 
reviewing the value of EERW and other trial design methodologies.
                          advisory committees
    Question. One of the recommendations in the External Review of FDA 
Regulations of Opioids Report--that you ordered--was to ensure that the 
FDA ``be as transparent as possible regarding decision- making''. 
Advisory Committees present complex scientific reviews of safety and 
efficacy of medicines. Most patients and the general public don't have 
a background to fully understand the scientific studies discussed in 
these settings.
    The FDA announced that it will be holding a listening session on 
June 13th to discuss the role of Advisory Committees, specifically ``to 
improve the public understanding of advisory committees''. One element 
of this you have stated is to reduce voting.
    Voting has helped with conveying complex analysis to the public. 
Even FDA's Director of Oncology Center of Excellence, Dr. Richard 
Pazdur, has said voting is necessary because ``[FDA] needs that 
clarity--[FDA] has to make a decision''.
    Can you clarify when you believe an Advisory Committee should or 
should not vote?
    Answer. Whether FDA will include voting questions at an Advisory 
Committee (AC) meeting depends on the subject of the meeting and the 
advice FDA is seeking from the AC. Voting is not a mandatory part of AC 
meetings, and votes are typically not taken at meetings discussing 
general issues, such as clinical trial design or the development of 
guidance documents. At other AC meetings, members may cast formal votes 
on particular issues, such as whether benefits outweigh risks in a 
product submission.\3\
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    \3\ Voting Procedures for Advisory Committee Meetings FDA
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    The feedback FDA obtains from votes on discrete questions can help 
the Agency gauge a committee's collective view on complex issues. 
However, many of the issues considered by ACs are nuanced, and FDA 
staff may be primarily interested in the discussions and interpretation 
of particular aspects of the data rather than a summative conclusion 
regarding risks and benefits of a product.
    Question. I introduced the bipartisan FDA Accountability for Public 
Safety Act to help provide greater transparency to FDA's approval 
process. Specifically, if an Advisory Committee votes against approval 
and the FDA decides to go against this vote, like in the case of the 
11-2 vote against Zohydro, the FDA must submit a report to Congress 
that includes the medical and scientific evidence to justify its 
approval.
    This commonsense bill helps with providing the greater transparency 
needed. Dr. Califf, you cited concerns with the public misunderstanding 
that votes are non-binding, however it is important that the FDA 
provide an explanation as to why they rejected the Advisory Committee's 
recommendations.
    My bill does not make votes binding, but it does require that the 
FDA provides this explanation. Advisory Committees are outside experts 
whose recommendations are made based on scientific evidence.
    Dr. Califf, how will you ensure Advisory Committee discussions are 
clear and transparent?
    Answer. FDA continues to explore ways to optimize its advisory 
committees (ACs). Following the May 8th hearing, the Agency held a 
public listening session on June 13, 2024, where we received public 
comments about FDA's use of and processes for AC meetings. FDA also 
established a docket that was open for public comment until August 13, 
2024. FDA will consider public feedback as we move forward with our 
optimization initiatives.
    We note that ACs do not vote to approve products-that is a 
regulatory decision for FDA alone. Rather, ACs provide valuable input 
on issues that would be helpful to FDA in considering the information 
and data submitted to support a marketing application. FDA carefully 
considers AC input in its decision-making.
                           drug supply chains
    Question. The FDA has previously reported that nearly 40 percent of 
finished drugs and roughly 80 percent of active pharmaceutical 
ingredients are manufactured abroad. During the COVID pandemic we saw 
disrupted drug-supply chains lead to increased drug shortages.
    In particular, Americans' access to essential medicines--as defined 
by FDA's report--are reliant on international supply chains putting 
them at risk of shortage.
    Has the FDA provided an updated report on current domestic 
manufacturing capacity and our reliance on international supply chains?
    Answer. We note that the figures you cite in your question come 
from a 2017 Government Accountability Office (GAO) report.\4\ We want 
to clarify a misconception that the data in that report reflect the 
volume of drug product produced by foreign manufacturers. In the report 
it is noted that ``FDA estimates that nearly 40 percent of finished 
drugs and approximately 80 percent of active pharmaceutical ingredients 
(API) are manufactured in registered establishments in more than 150 
countries . . .'' (emphasis added). This is referring to the number of 
finished product and the number of APIs that are manufactured in 
foreign registered establishments, not the volume of finished drugs and 
API manufactured at foreign registered establishments. The Agency does 
not currently have a full picture of the actual volume of foreign drug 
reliance.
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    In February 2024 we published our final guidance, ``Reporting 
Amount of Listed Drugs and Biological Products Under Section 510(j)(3) 
of the FD&C Act" \5\, on reporting to the Agency under this FD&C Act 
provision (as added by the CARES Act ). This final guidance recommends 
that for calendar year 2023, the annual reports required by section 
510(j)(3) should be submitted no later than July 31, 2024; reports for 
subsequent calendar years should be submitted by March 31st of the 
following calendar year (e.g., CY 2024 reports should be submitted by 
March 31, 2025). Now that the guidance is final, we expect more firms 
to fulfill their obligation to submit this data.
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    Following the May 8th hearing, CDER published its FY 2023 Report on 
the State of Pharmaceutical Quality. This report, like its five annual 
predecessors \6\ shares multiple presentations of data on site and 
product demographics that help to characterize the source and quality 
of drugs marketed in the U.S. However, the full picture of the volume 
of drugs manufactured in each country is not currently feasible.
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    Question. Will the FDA work with the Administration for Strategic 
Preparedness and Response to identify areas of concern and potential 
opportunities to support production of essential medicines in the 
United States?
    Answer. Reliance on foreign manufacturing is not a new concern for 
FDA. There are some things we can do to make it easier for 
manufacturing to be done in the United States, however there are 
significant economic issues that are out of our purview that have 
contributed to increased foreign manufacturing, specifically, pricing 
pressures, labor, and regulatory costs. We have been working closely 
with colleagues across HHS to identify authorities and capabilities 
available to address those other market forces. The Administration for 
Strategic Preparedness and Response is a critical partner in this, via 
the Supply Chain Control Tower and other capabilities, all as part of 
the HHS Supply Chain Working Group.
    Within FDA, one of the most important things we can do to help 
reduce our reliance on foreign manufacturing is to encourage and 
facilitate the adoption of advanced manufacturing. Ensuring that both 
innovator product and generic drug manufacturers will have access to 
information regarding advanced manufacturing technologies is vitally 
important because advanced manufacturing requires a skilled workforce 
and can help domestic companies operate in smaller facilities with 
lower costs and fewer potential quality issues, improving the global 
competitiveness of U.S. manufacturing.

                                 ______
                                 

             Questions Submitted by Senator Kyrsten Sinema
                             ethylene oxide
    Question. As I've expressed to you and Administrator Regan in the 
past, I have serious concerns with how the rulemaking around Ethylene 
Oxide (EtO) was handled. The potential impact of this rule on the 
safety and availability of sterilized medical devices is one that I 
still don't believe EPA has taken with full seriousness, including 
comments made by your Agency about the risks to medical device supply 
chains.
    Can you explain how the EPA worked with you and your Agency to 
address concerns about medical device supply chains requiring EtO for 
sterilization in the final rulemaking? Are there currently alternative 
modalities that don't use EtO that would be able to handle the volume 
and kinds of medical device sterilization should this rule be 
implemented? Are you and your staff satisfied with the final rulemaking 
with confidence that it will not endanger public health by impeding the 
sterilization of necessary medical devices?
    Answer. FDA shares the same goals of protecting the public health 
by lowering ethylene oxide (EtO) exposure to workers and community 
members, while also maintaining the availability of supplies of sterile 
medical devices for patients in the U.S. The Environment Protection 
Agency final rule reflects key changes to help achieve both goals after 
engagement with FDA.
    More than 20 billion devices sold in the U.S. every year are 
sterilized with EtO, accounting for approximately 50% of devices that 
require sterilization. These include critical devices, such as wound 
dressings, stents, and kits used in routine hospital procedures or 
surgeries. In many cases, EtO may be the only method that effectively 
sterilizes and does not damage the device during the sterilization 
process. Even for devices that may be able to use an alternative, 
sponsors likely will need to undertake testing and new validation, and 
in some cases, redesign of the device may be necessary-a process that 
can take several years, depending on the device and material. While 
some innovations appear promising, other methods of sterilization 
cannot replace the use of EtO for many devices.
    Understanding the fixed nature of EtO sterilization capacity in the 
U.S., FDA has implemented programs and initiatives to support 
innovation in medical device sterilization, and we remain committed to 
this effort. This work includes developing Sterilization Master File 
Pilot programs to support certain changes for sterilization processes, 
launching innovation challenges to encourage new strategies to reduce 
EtO emissions and the development of new sterilization methods or 
technologies, proactive engagement with industry to help advance 
innovative alternatives to EtO, and our medical device town hall 
series.\28\
---------------------------------------------------------------------------
    \28\ https://www.fda.gov/medical-devices/workshops-conferences-
medical-devices-unpublished/medical-device- sterilization-town-hall-
fda-activities-and-challenges-reducing-reliance-ethylene
---------------------------------------------------------------------------
                          drug clinical trials
    Question. The FDA is currently implementing guidance to improve the 
diversity of patient populations represented in clinical trials, 
including new requirements that study sponsors provide diversity action 
plans for phase 3 trials of new drugs and medical devices to ensure 
medical products are safe and effective for all intended populations. 
I've been proud to support the work of Arizona universities, 
researchers, and patients who are participating in the National 
Institutes of Health (NIH) All of Us program and other efforts to 
diversify health research and ensure health innovations work for all 
Arizonans, including our Tribal communities.
    However, clinical trials used for U.S. drug approval can occur 
outside the United States and may not appropriately reflect the unique 
demographics, health care systems, and lifestyles represented in 
Arizona and in the U.S. nationally. There may also be challenges in the 
U.S. to overcome common barriers to participation for rare and rare 
pediatric diseases, given smaller populations, especially in our rural 
and underserved areas.
    What is the FDA doing to improve the proportion of patients from 
the U.S. represented in overseas clinical trials and how does the FDA 
assess the representativeness of populations outside of the U.S. 
relative to the U.S. population? How is the FDA working with study 
sponsors to address the challenges in rural and rare disease 
communities?
    Answer. Participants in clinical trials should be representative of 
the patients who will use the medical products. FDA has a longstanding 
commitment to promote the inclusion of underrepresented populations in 
clinical trials and to help reduce barriers that may prevent the 
enrollment and retention of a diverse trial population. For global 
medical product development, the Agency supports the use of well-
designed and conducted multi-regional clinical studies; however, 
foreign clinical data must be relevant to the patient population in the 
United States and our practice of medicine.
    FDA has also published a number of guidances with recommendations 
on enhancing diversity in clinical trials to help ensure that results 
are generalizable to the intended use population, including 
recommendations that can help increase enrollment of populations with 
rare diseases, and those in rural locations. Some of these actions 
include:

  --The November 2020 final guidance Enhancing the Diversity of 
        Clinical Trial Populations--Eligibility Criteria, Enrollment 
        Practices, and Trial Designs \29\, to provide sponsors 
        recommendations to help increase clinical trial diversity and 
        better reflect the population most likely to use the future 
        medical product.
---------------------------------------------------------------------------
    \29\ https://www.fda.gov/regulatory-information/search-fda-
guidance-documents/enhancing-diversity-clinical-trial- populations-
eligibility-criteria-enrollment-practices-and-trial

  --The 2023 published guidance Digital Health Technologies for Remote 
        Data Acquisition in Clinical Investigations \30\ and draft 
        guidance Decentralized Clinical Trials for Drugs, Biological 
        Products, and Devices \31\ to help sponsors design more 
        patient-centric trials with flexible locations.
---------------------------------------------------------------------------
    \30\ https://www.fda.gov/regulatory-information/search-fda-
guidance-documents/digital-health-technologies- remote-data-
acquisition-clinical-investigations
    \31\ https://www.fda.gov/regulatory-information/search-fda-
guidance-documents/decentralized-clinical-trials- drugs-biological-
products-and-devices

                       first cycle drug approvals
    Question. Given the stated goals in the Prescription Drug User Fee 
Act to promote the efficiency and effectiveness of the first cycle 
review process, how is the FDA working with sponsors to better identify 
and resolve potential issues during the first cycle review to ensure 
faster patient access to safe and effective novel prescription drugs 
and generics? How have first cycle approval rates changed in the past 7 
years for generics and for novel approvals, and what factors have 
impacted the most recent increases or decreases in first cycle 
approvals?
    Answer. FDA understands the importance of efficient review cycles 
to ensure access to safe and effective prescription drugs. For new 
drugs covered by PDUFA, FDA provides timely advice and feedback to 
sponsors at various points during the drug development process, 
potentially addressing new issues quickly before the application review 
process.
    FDA's first-cycle approval rates for ``novel'' drugs (NME NDAs and 
original 351(a) BLAs) are generally high, although there has been year-
to-year variability over the past 7 years with lows in FY 2021 that 
have started to increase. Since FDA reviews each drug application on a 
case-by-case basis, it is challenging to retrospectively categorize the 
issues identified into distinct themes or trends; general percentages 
are presented below.

FY 17
  --NME NDA/Original 351(a) BLA--priority review 100%
  --NME NDA/Original 351(a) BLA--standard review 75%

FY 18
  --NME NDA/Original 351(a) BLA--priority review 87%
  --NME NDA/Original 351(a) BLA--standard review 67%

FY 19
  --NME NDA/Original 351(a) BLA--priority review 91%
  --NME NDA/Original 351(a) BLA--standard review 86%

FY 20
  --NME NDA/Original 351(a) BLA--priority review 85%
  --NME NDA/Original 351(a) BLA--standard review 48%

FY 21
  --NME NDA/Original 351(a) BLA--priority review 60%
  --NME NDA/Original 351(a) BLA--standard review 42%

FY 22
  --NME NDA/Original 351(a) BLA--priority review 78%
  --NME NDA/Original 351(a) BLA--standard review 56%

FY 23
  --NME NDA/Original 351(a) BLA--priority review 80%
  --NME NDA/Original 351(a) BLA--standard review 59%

    With respect to generic drugs covered by the Generic Drug User Fee 
Amendments (GDUFA), one of FDA's goals is to maximize the efficiency 
and utility of each assessment cycle, so that we can reduce the number 
of assessment cycles for abbreviated new drug applications (ANDAs) and 
facilitate timely access to quality, affordable, safe and effective 
generic medicines. To achieve this, FDA communicates frequently with 
industry, similar to PDUFA, and funds research under the GDUFA Science 
and Research Program to better understand drug products and develop new 
tools to evaluate generic drug equivalence. FDA also develops Product-
Specific Guidances to assist generic drug developers and established 
the Drug Competition Action Plan (DCAP) in 2017 to further encourage 
robust and timely market competition for generic products.
    As a result of these and other efforts, FDA's times to approval for 
ANDAs have decreased under the GDUFA program, and we have also made 
progress in minimizing the number of review cycles for applications to 
obtain approval. While there is some year-to-year variability, in more 
recent years (FY 2018-FY 2023), the rate of first cycle approvals has 
generally increased, as noted below:

  --FY 18 17.1%
  --FY 19 15.1%
  --FY 20 15.2%
  --FY 21 16.7%
  --FY 22 15.9%
  --FY 23 17.6%

    FDA works with all sponsors to resolve issues and help speed 
development of new and generic drug products, while maintaining high, 
scientifically-based assessment standards.
                            real-world data
    Question. More and more of our health care system is now digitized 
and there are more potential sources to pull data and information from 
to help clinicians and researchers. Data is fragmented across multiple, 
complex systems however and there must be the strongest protections to 
preserve and protect patient data and personally identifiable 
information. Does FDA guidance currently allow for or is the FDA 
working with organizations who can help connect researchers and 
clinicians to de-identified health care data across real-world data 
sources like electronic health records, payor claims, and mortality 
data? What specifications or guidance does the FDA currently provide 
regarding use of encryption tools and privacy-preserving record 
locators to optimize the collection of comprehensive real-world data?
    Answer. FDA guidance provides sponsors, researchers, and other 
interested parties with recommendations related to the use of real-
world data-such as from electronic health records (EHRs), claims, and 
registries-to support a regulatory decision. As FDA seeks to improve 
the comprehensiveness and validity of studies using de-identified data 
while protecting privacy, the Agency supports research projects with 
external organizations that use methods of encryption to link data in 
commercial EHR systems with claims and mortality data.
    With regard to the use of encryption tools and privacy-preserving 
record locators, such standardizing specifications are not generally 
within the purview of the Agency. Nonetheless, FDA guidance addresses 
considerations to ensure that linkages of de-identified data lead to 
datasets that are complete and fit-for-use in regulatory decision-
making.

                                 ______
                                 

               Questions Submitted by Senator John Hoeven
                          human foods program
    Question. As touched upon during our hearing, we appreciate the 
work FDA is undertaking to establish the unified Human Foods Program 
and the reworking of the Office of Regulatory Affairs. It's been said 
this is the largest reorganization in FDA's history. At the end of the 
day, Americans want to be assured that the food they eat it is safe.
    What are the specific objectives of the reorganization, and what 
metrics will you use to determine whether or not the new programs are 
achieving said objectives while increasing the safety of our food 
supply system?
    Answer. Among other things, the changes in the Human Foods Program 
(HFP) reorganization will allow the Agency to more effectively realize 
the preventive vision laid out in the FDA Food Safety Modernization 
Act; elevate the importance of nutrition to help reduce diet-related 
diseases; and strengthen state partnerships and embrace innovative food 
and agricultural technologies that will position the Agency to more 
effectively regulate and uphold the safety of the Nation's food supply. 
As the reorganization is implemented, communicating these strategic 
goals and priorities of the newly established HFP, for both 
transparency and accountability, will be important. We are developing 
strategic management processes for the new organization and are working 
on communicating HFP priorities and accomplishments in FY 2025. In the 
longer-term, a key component of the HFP is the Office of Strategic 
Programs, which will facilitate strategic planning and performance 
management across the program and evaluate progress toward annual and 
multi-year priorities.
                       laboratory developed tests
    Question. FDA recently finalized its Laboratory Developed Tests 
(LDT) regulation, which as I understand it, is an attempt to improve 
the safety of lab tests, pathology results, diagnosis, and treatment.
    While well-intentioned, we should make sure to avoid one-size-fits-
all rules that may result in unintended consequences or lead to the 
stifling of innovation.
    Can you describe the feedback FDA received during the rulemaking 
process, and how the comments received are addressed in the final rule?
    Answer. FDA received more than 6,500 comments on the notice of 
proposed rulemaking from a variety of entities including medical device 
associations, members of the medical device and pharmaceutical 
industries, medical and healthcare professional associations, hospitals 
and academic medical centers, accreditation organizations, other 
advocacy organizations, government agencies, and individuals.
    Comments supporting FDA's proposal pointed to problems with 
laboratory developed tests (LDTs), concerns about the significant 
impact of problematic LDTs on patients and the treatment decisions of 
healthcare providers, and the need for increased oversight of LDTs by 
FDA. Some comments also emphasized the importance of creating a ``level 
playing field'' between laboratory and non-laboratory manufacturers of 
in vitro diagnostics (IVDs), and described how phasing out the general 
enforcement discretion approach for LDTs would incentivize innovation 
by non- laboratory IVD manufacturers.
    Some comments also raised concerns or requested clarification 
regarding the evidence related to the safety or effectiveness of IVDs 
offered as LDTs; the sufficiency of regulation by the Centers for 
Medicare & Medicaid Services and other non-FDA entities; FDA's legal 
authority to regulate LDTs; the impact of the phaseout policy on access 
to and the pricing of IVDs offered as LDTs; the impact of the phaseout 
policy on test innovation; the impact of the phaseout policy on small 
laboratories; the impact of the phaseout policy on specific patient 
populations; the details of the phaseout policy; the types of IVDs 
offered as LDTs for which the FDA intends to continue the general 
enforcement discretion approach and generally not enforce some or all 
applicable requirements; and FDA's implementation of the phaseout 
policy and the resources needed for such implementation. FDA responded 
to comments in the preamble to the final rule.
    In part based on comments received on the notice of proposed 
rulemaking, FDA's final phaseout policy described in the preamble to 
the final rule includes several targeted enforcement discretion 
policies for specific categories of IVDs manufactured by a laboratory, 
which were not included in the proposed phaseout policy described in 
the preamble to the proposed rule.
    Specifically, FDA intends to:

  --Exercise enforcement discretion and generally not enforce 
        requirements for LDTs manufactured and performed within the 
        Veterans Health Administration or the Department of Defense.

  --Exercise enforcement discretion and generally not enforce premarket 
        review requirements for LDTs approved by, conditionally 
        approved by, or within an approved exemption from full 
        technical documentation under the New York State Department of 
        Health Clinical Laboratory Evaluation Program, as described in 
        the preamble to the final rule.

  --Exercise enforcement discretion and generally not enforce premarket 
        review requirements and most quality system (QS) requirements 
        for LDTs manufactured and performed by a laboratory integrated 
        within a healthcare system to meet an unmet need of patients 
        receiving care within the same healthcare system.

  --Exercise enforcement discretion and generally not enforce premarket 
        review and most QS requirements for currently marketed IVDs 
        offered as LDTs that were first marketed prior to the date of 
        issuance of the rule and that are not modified, or that are 
        modified in certain limited ways as described in the preamble.

  --Exercise enforcement discretion and generally not enforce premarket 
        review and most QS requirements for non-molecular antisera LDTs 
        for rare red blood cell antigens where such tests are 
        manufactured and performed in blood establishments, including 
        transfusion services and immunohematology laboratories, and 
        where there is no alternative available to meet the patient's 
        need for a compatible blood transfusion. These serological 
        tests are used for typing red blood cell units for non-ABO/
        Rh(D) antigens to ensure the patient receives a compatible 
        blood transfusion.

    Question. How will FDA work to ensure this is not a regulatory 
barrier that contributes to paperwork burdens on physicians and 
hospitals, or negatively impacts the development of new, innovative 
tests?
    Answer. Increased FDA oversight is important to realize the 
potential of innovative laboratory developed tests (LDTs) by, for 
example, motivating the development of robust scientific data on safety 
and effectiveness. FDA believes the final phaseout policy will also 
incentivize innovation by non- laboratory manufacturers and help ensure 
that innovation from laboratory manufacturers yields in vitro 
diagnostics (IVDs) for which there is a reasonable assurance of safety 
and effectiveness. FDA's previous enforcement discretion approach for 
LDTs may have disincentivized innovation by non-laboratory 
manufacturers who compete with laboratory manufacturers that offered 
their tests without complying with FDA requirements. Addressing the 
current imbalance in oversight may foster innovation by manufacturers 
who can make safe and effective novel tests available to many labs. 
Moreover, by applying the same general oversight approach to 
laboratories and non- laboratories that manufacture IVDs, FDA will give 
stakeholders greater clarity regarding compliance expectations.
    The final phaseout policy includes several enforcement discretion 
policies that the Agency anticipates will reduce burdens for physicians 
and hospitals. For example, FDA intends to exercise enforcement 
discretion and generally not enforce premarket review and quality 
system requirements for certain LDTs manufactured and performed by a 
laboratory integrated within a healthcare system to meet an unmet need 
of patients receiving care within the same healthcare system.
                    fda staffing and telework issues
    Question. Like many organizations, FDA utilized telework during the 
height of the Public Health Emergency. At FDA, there are certain 
activities during drug development that still require in- person 
collaboration, including meeting management, inspections, and first 
cycle approvals for products.
    Can you summarize FDA's current telework policy?
    Does FDA's current telework policy allow for critical in-person 
meetings, i.e. meetings with drug developers on drug reviews?
    Answer. FDA understands the value of in-person interactions to 
foster deeper connections, creativity, and seamless teamwork. The 
Agency remains steadfast in our commitment to facilitating in-person 
meetings while accommodating the diverse needs of our workforce and 
stakeholders.
    FDA's current telework policy prioritizes meaningful in-person 
engagement while providing eligible employees with flexibility for 
remote work, telework, or on-site work arrangements according to job 
roles and organizational goals. Business needs may require certain 
positions to work on-site more frequently and vary between the various 
components of FDA. Positions may therefore be required to regularly 
attend in-person meetings with internal team members, industry 
sponsors, or other interested parties.
    One example are formal meetings with industry, as agreed to in the 
Prescription Drug User Fee Act (PDUFA) VII \7\ and Biosimilar User Fee 
Amendments (BsUFA) III.\8\ As of January 22, 2024,\9\ FDA's Center for 
Drug Evaluation and Research and Center for Biologics Evaluation and 
Research expanded in-person face-to-face industry meetings with a 
hybrid component to allow maximum participation to include all PDUFA, 
BsUFA, and Over-The-Counter Monograph Drug User Fee Program (OMUFA) 
meeting types. All meetings have a hybrid component to enable attendees 
who may not be able to attend in-person to participate. However, anyone 
who is invited may attend in-person if they prefer. Thus far, FDA has 
received positive feedback from industry regarding the flexibility that 
virtual, hybrid, and in-person meetings provide. FDA will continue to 
work with industry to fully meet our user fee commitments and to ensure 
FDA's workforce operates at the highest level as we work to further our 
public health mission.
---------------------------------------------------------------------------
    \7\ PDUFA Reauthorization Performance Goals and Procedures Fiscal 
Years 2023 Through 2027
    \8\ Biosimilar Biological Product Reauthorization Performance Goals 
and Procedures Fiscal Years 2023 Through 2027
    \9\ Beginning February 13, 2023, prior to expiration of the COVID-
19 Public Health Emergency, CDER and CBER started a phased return to 
in-person meetings. From Feb. 13, 2023 until Jan. 21, 2024, industry 
requested 83 in- person meetings. 90% of those meetings were granted as 
in-person. No meetings were delayed or denied due to conference room 
availability.
---------------------------------------------------------------------------
                          facility inspections
    Question. There continues to be high demand for drug and biologic 
facility inspections.
    What other tools, beyond on-site inspections, does the Agency have 
to help assess compliance of drug manufacturing facilities?
    Answer. The Agency has a set of alternate tools it can use, as 
applicable and appropriate, as standalone or in conjunction with an 
FDA-conducted on-site inspection to provide oversight for FDA- 
regulated products, including mandatory requests for records under 
section 704(a)(4) of the FD&C Act and voluntary remote interactive 
evaluations. FDA used remote records requests to obtain information on 
the compliance of manufacturers when inspections were curtailed due to 
risk to agency and industry personnel during the COVID-19 public health 
emergency. These records requests help the Agency to maintain oversight 
over regulated establishments, determine best use of limited Agency 
inspectional resources, and when appropriate, help FDA make decisions 
on new drug applications and abbreviated new drug applications. 
Additionally, these records help the Agency determine whether 
sufficient corrective actions have been taken by previously compliant 
manufacturers to address identified objectionable conditions, allowing 
more efficient use of Agency resources.
    For foreign inspections, records requests under section 704(a)(4) 
and other remote regulatory assessments continue to serve as a valuable 
tool for the Agency when inspections cannot be conducted in certain 
countries or regions due to factors such as security issues. FDA also 
has Mutual Recognition Agreements (MRAs) in place with several foreign 
regulatory authorities (e.g., European Medicines Agency (EMA), 
Medicines and Healthcare products Regulatory Agency (MHRA), and 
SwissMedic) allowing the Agency to rely in part on inspections 
conducted by foreign regulatory authorities meeting U.S. requirements. 
These MRAs can help avoid duplication of inspections by multiple 
regulatory authorities for manufacturers and also enables the Agency to 
reallocate resources to other drug manufacturing facilities with higher 
risk profiles.
    Question. The Agency has issued a number of draft guidances on the 
use of alternative tools, including remote regulatory assessments and 
remote interactive evaluations.
    Has FDA begun using these tools to optimize their resources and 
capabilities in gathering data? If so, what has the Agency's experience 
been?
    Answer. The Agency frequently used the authority for records 
requests under section 704(a)(4) of the Federal Food, Drug, and 
Cosmetic Act (FD&C Act) during the COVID-19 public health emergency to 
collect information on the compliance of drug manufacturers, when 
facility inspections were curtailed due to risk to Agency and industry 
personnel. The Agency continues to use authority for section 704(a)(4) 
records requests-which were expanded by Congress in 2022 to device 
establishments and facilities subject to bioresearch monitoring 
inspections-when an on-site inspection is not feasible. These records 
requests, under which FDA can require the provision of records in 
advance or in lieu of an inspection, allow the Agency to help maintain 
oversight over regulated establishments and have also been used, as 
appropriate, to help make decisions on new drug applications and 
abbreviated new drug applications. Lastly, records requests and other 
types of remote regulatory assessments (RRAs) continue to serve as a 
valuable tool for the Agency when inspections cannot be conducted in 
certain countries or regions due to security issues. They have also 
been beneficial in providing FDA with information to help show 
corrective actions have been taken based on previous inspection 
findings, allowing more efficient use of Agency resources.
    In FY 2023, FDA Office of Regulatory Affairs, Office of Import 
Operations (OIO), conducted 1,155 remote foreign supplier verification 
program (FSVP) inspections, with respect to human and animal foods; 
currently in FY 2024, OIO has conducted approximately 523 remote FSVP 
inspections. While such remote activities are a good tool, more time is 
needed to enable improved efficiencies in the process and to address 
challenges seen by industry. FDA has also seen some challenges 
regarding document sharing and communications, particularly with 
foreign facilities. Additionally, the collection of information via 
section 704(a)(4) records requests were sometimes more time- and 
resource-intensive than expected and at times, does not necessarily 
result in time and human resource savings. Although they are useful and 
viable tools, RRAs including section 704(a)(4) records requests and 
remote interactive evaluations, they are not a replacement for an 
onsite inspection.
                      biopharmaceutical production
    Question. There has been an increased focus on enhancing the 
availability and production of drugs and biologics domestically to 
improve supply chain capabilities and avoid disruptions and shortages 
of critical medical products.
    What is FDA doing to incentivize domestic biopharmaceutical 
production and capacity?
    Answer. Reliance on foreign manufacturing is not a new concern for 
FDA. There are some things we can do to make it easier for 
manufacturing to be done in the United States, however there are 
significant economic issues that are out of our purview that have 
contributed to increased foreign manufacturing, specifically, pricing 
pressures, labor, and regulatory costs. We have been working closely 
with colleagues across HHS to identify authorities and capabilities 
available to address those other market forces. The Administration for 
Strategic Preparedness and Response is a critical partner in this, via 
the Supply Chain Control Tower and other capabilities, all as part of 
the HHS Supply Chain Working Group.
    Within FDA, one of the most important things we can do to help 
reduce our reliance on foreign manufacturing is to encourage and 
facilitate the adoption of advanced manufacturing. Ensuring that both 
innovator product and generic drug manufacturers will have access to 
information regarding advanced manufacturing technologies is vitally 
important because advanced manufacturing requires a skilled workforce 
and can help domestic companies operate in smaller facilities with 
lower costs and fewer potential quality issues, improving the global 
competitiveness of U.S. manufacturing.
                          counterfeit products
    Question. How is FDA addressing concerns over counterfeit and 
substandard products potentially making their way into the country?
    Answer. FDA's Office of Criminal Investigations (OCI) plays a 
crucial role in investigating and helping prosecute individuals 
involved in the shipment of illegal FDA-regulated products into the 
United States. OCI created the International Operations Program (IOP) 
to help address this issue, and special agents assigned to IOP work 
closely with Customs and Border Protection at the international mail 
facilities, express parcel carriers, and air cargo facilities to detect 
shipments involving illegal FDA-regulated products and to investigate 
those involved in these illegal activities, as appropriate. OCI also 
collaborates with international counterparts, including United Kingdom 
agencies, Interpol, and Europol, to seize violative shipments and stop 
the flow of illegal FDA-regulated products destined for the United 
States; degrade (if not eliminate) the capabilities of those trading in 
these illegal products; and prosecute those engaging in these illegal 
practices.
    FDA also accomplishes this important work through the refusal of 
imported FDA-regulated products that appear to be adulterated, 
misbranded, or unapproved new drugs. In 2012, FDA was granted the 
authority to administratively destroy adulterated, misbranded, or 
counterfeit drugs valued at $2,500 or less. In 2018, FDA was also 
granted the authority to detain, refuse, and administratively destroy 
imported articles containing certain active pharmaceutical ingredients 
even if the article has little to no explicit evidence of intended drug 
use. These authorities are intended to protect the integrity of the 
United States drug supply chain and the public by preventing 
distribution or use of violative drugs that potentially pose a threat 
to consumer's health. FDA investigators also examine allegations of 
counterfeit and substandard products that have been introduced into the 
country. These actions can form the basis for initiating the types of 
criminal investigations or interdiction activities as described above, 
as well as domestic enforcement actions that would stop further 
distribution of such products.
                        pdufa performance goals
    Question. Patients have come to rely on the FDA as the gold 
standard for ensuring the safety and efficacy of new medications. PDUFA 
was put in place over 30 years ago to address unacceptable delays, with 
program funds used to help ensure that the agency has the necessary 
resources to keep pace with innovation. Under PDUFA, FDA commits to 
certain performance goals for the timely conduct of sponsor meetings 
where alignment can be reached on data and study design expectations 
that would support future product approvals. In the most recent PDUFA 
performance report (FY 2022), FDA met 6 out of the 20 procedural 
meeting goals. This results in sponsors either delaying study starts or 
proceeding at risk without FDA alignment, either of which may result in 
delayed access for patients.
    What efforts are being taken to ensure the review capabilities and 
workforce capacity exists to meet PDUFA's performance goals?
    Answer. FDA plays a vital role during drug development by providing 
advice and feedback to sponsors at various points during the process. 
Timely interactive communication with sponsors during drug development 
is a core Agency activity and helps ensure that new and innovative 
products are developed and available to the American public as soon as 
possible.
    After FDA receives an application, the Agency's obligation is to 
manage the review process and determine whether a submitted application 
meets the legal and scientific requirements for approval of the 
product. FDA staff are expected to adhere to internal review timelines, 
established in part through user fee agreements. To increase the 
likelihood of first cycle approval, however, the applicant's continued 
active involvement is important, especially in responding to requests 
for additional information that may be prompted by the ongoing reviews. 
FDA works with all sponsors to resolve issues and help speed 
development of new products, while maintaining high, scientifically-
based safety and efficacy standards.
    To efficiently conduct reviews of human drug applications and meet 
PDUFA commitments, FDA must be able to hire and retain sufficient 
numbers and types of technical and scientific experts.
    To strengthen this core capability, FDA has established a 
modernized position management system, more efficient recruiting 
practices, a dedicated scientific recruiting function, and metric goals 
for human drug review staff hiring. The vital hiring authorities in the 
CURES Act have also greatly improved FDA's ability to hire and retain 
scientific experts in more complex and specialized areas and meet our 
growing responsibilities. The Agency continues to put every effort into 
meeting our hiring goals.
    From FY23-25, 333 newly funded FTE positions were provided with the 
passage of PDUFA VII as shown on Page 59 of the PDUFA VII commitment 
letter available online.\10\
---------------------------------------------------------------------------
    \10\ https://www.fda.gov/media/151712/download?attachment
---------------------------------------------------------------------------
    A current update on our hiring efforts can be found on our website 
and is updated quarterly.\11\
---------------------------------------------------------------------------
    \11\ https://www.fda.gov/industry/prescription-drug-user-fee-
amendments/pdufa-and-bsufa- quarterly-hiring-updates.
---------------------------------------------------------------------------
                              biosimilars
    Question. Biosimilars offer a market-based approach to providing 
more affordable biologic products after the patent and exclusivity 
protections expire. These products, like generic drugs, can be an 
effective option for patients in the marketplace.
    How is FDA ensuring the timely availability of safe and effective 
biosimilar products?
    Answer. Just recently, the Agency approved our 50th biosimilar in 
April 2024. FDA has many activities in the biosimilar space and many of 
them are reflected in the overarching goals outlined in the Agency's 
Biosimilar Action Plan:

  --Enhancing the efficiency of the biosimilar product development and 
        approval process.

  --Maximizing scientific and regulatory clarity for the biosimilar 
        product development community.

  --Developing effective communications to improve understanding of 
        biosimilars.

  --Supporting market competition by reducing attempts to unfairly 
        delay competition.

    We also included a legislative proposal in the President's FY 2025 
Budget request to eliminate the statutory distinction between 
biosimilar and interchangeable biosimilar products. This proposal would 
deem all approved biosimilars to be interchangeable with their 
respective reference products. This proposal would also help eliminate 
any confusion caused by the statutory distinction between biosimilars 
and interchangeable biosimilars and could save patients and the Federal 
Government money.
    FDA has developed a variety of educational resources for both 
health care providers and patients to provide unbiased, accurate 
information about biosimilars. We are continuing that work by 
developing additional materials and using innovative dissemination 
methods to reach intended audiences.
                               sunscreen
    Question. In accordance with the President's Cancer Moonshot goals 
to continue reducing cancer death rates, the Committee is interested in 
understanding what progress is being made in the approval of next 
general sunscreen products. The FDA last approved a new over-the-
counter monograph sunscreen active ingredient, or UV filter, in the 
1990s. Since that time, other countries around the world have moved 
ahead of the United States in the development of new products, and 
eight new products submitted to the FDA under the sunscreen monograph 
Time and Extent Application process have been stalled in the approval 
process. In 2014, Congress enacted the Sunscreen Innovation Act, which 
authorized the issuance of guidance for the criteria for a generally 
recognized as safe and effective (``GRASE'') determination for 
nonprescription sunscreen products, and required the agency to finalize 
the sunscreen monograph within 5 years of enactment. Despite these 
efforts, no new sunscreen active ingredients have been approved. In 
2022, CDER Director of the Office of Nonprescription Drugs Theresa 
Michele noted that research studies were ongoing on the eight products 
noted above that were submitted to the FDA. No new updates have been 
provided since that time.
    Will you provide the latest status regarding an update to the 
sunscreen monograph, including the status of research studies and a 
timeline of when FDA expects to be ready to approve new sunscreen 
products?
    Answer. At the outset, we note that the question cites to a webpage 
published in 2022 with comments from Dr. Theresa Michele.\12\ The scope 
of ingredients addressed in the 2022 webpage is limited to ingredients 
that are currently permitted to be lawfully marketed in the U.S. 
However, the question seems to be addressing a different subset of 
ingredients-specifically, those that are not currently permitted to be 
lawfully marketed in the U.S. as active ingredients in sunscreen 
products. While there are data gaps relevant to both sets of 
ingredients, the regulatory status of these two groups of ingredients 
is not identical. Given the emphasis of the question on ``new'' 
ingredients, we assume the intent of the question is to inquire as to 
the status of ingredients that are not currently permitted to be 
marketed in the United States. Accordingly, our response addresses that 
group of ingredients.
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    \12\ https://www.fda.gov/drugs/cder-conversations/update-sunscreen-
requirements-deemed-final-order-and- proposed-order
---------------------------------------------------------------------------
    Many Americans rely on sunscreens as part of their skin cancer 
prevention strategy, which makes satisfactory evidence of both safety 
and effectiveness of these products critical for public health. To help 
reduce the risk of skin cancer, sunscreen products are often used on a 
near-daily basis over a whole lifetime, starting at age 6 months, and 
are applied over much of the body surface--thus frequently involving 
extensive, repeated, cumulative exposure to their active ingredients.
    Since sunscreens were originally evaluated, newer data emerged 
showing that a number of sunscreen active ingredients are absorbed 
through the skin and into the body. Consequently, safety questions 
about sunscreens--particularly questions related to long-term use of 
absorbed ingredients-remain a priority. FDA's safety testing framework 
for sunscreens was strongly supported by an independent advisory 
committee.
    As such, FDA encourages sunscreen manufacturers to submit data 
showing that sunscreens containing active ingredients that are not yet 
available in the United States are generally recognized as safe and 
effective. To that end, we have directed industry to helpful guidance 
documents FDA has published on the safety and effectiveness data needed 
to determine whether a nonprescription sunscreen active ingredient is 
GRASE \13\ and on conducting Maximal Usage Trials (MUsT) \14\ needed to 
assess how much of a sunscreen ingredient is absorbed through the skin 
into the body. In addition, FDA conducted and published two pilot 
trials \15 16\, evaluating the absorption of various sunscreen 
ingredients. Wherever possible, FDA has also taken steps to offer 
industry tailored study recommendations that take into consideration 
the specific pharmacological properties of sunscreens and that could 
reduce testing burdens.
---------------------------------------------------------------------------
    \13\ https://www.fda.gov/media/94513/download
    \14\ https://www.fda.gov/regulatory-information/search-fda-
guidance-documents/maximal-usage-trials-topically- applied-active-
ingredients-being-considered-inclusion-over-counter
    \15\ https://jamanetwork.com/journals/jama/fullarticle/2733085
    \16\ https://jamanetwork.com/journals/jama/fullarticle/2759002
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    Question. Regarding timeline, if and when FDA receives a needed 
data for sunscreen active ingredients that are not currently permitted 
to be marketed in the U.S., FDA will review it in a timely manner and 
in accordance with the timeframes set forth in user fee letters 
negotiated with industry.
    FDA also notes that while having additional sunscreen choices may 
be desirable to consumers, new sunscreen active ingredients are not 
necessarily safer or more effective than the ones already available in 
the U.S. by virtue of being available in markets other than the U.S. 
Many currently marketed and widely available sunscreen products provide 
broad-spectrum protection with an SPF of 15 or more and are effective 
not only in helping to prevent sunburn, but also in reducing the risk 
of skin cancer and early skin aging caused by the sun, when used as 
directed in their labeling.
    FDA is committed to working with industry and public health 
stakeholders to help ensure that the sunscreens consumers use to 
protect themselves and their families are safe and effective for their 
intended use.
               foreign manufacturer tobacco registration
    Question. In 2009, Congress required under the Tobacco Control Act 
that the FDA publish a rule requiring foreign manufacturers to register 
with the FDA if they wanted to sell tobacco products in the
    U.S. Like many, I am concerned with the influx of illicit vapor 
products manufactured in China that are being illegally imported into 
the United States.
    Can you share what FDA is doing in terms of enforcement on this 
issue, and when we can expect the rule required by the Tobacco Control 
Act?
    Answer. FDA continues to work on the Establishment Registration and 
Product Listing for Tobacco Products proposed rule, which appeared in 
the most recent Unified Agenda.\17\ CTP also included the rule on its 
recently published policy agenda which outlines rules and guidance 
documents that are in development or planned for development.\18\ The 
proposed regulation would prescribe the format, content, and procedures 
for establishment registration and tobacco product listings for both 
domestic and foreign manufacturers of tobacco products.
---------------------------------------------------------------------------
    \17\ https://www.reginfo.gov/public/do/eAgendaMain
    \18\ https://www.fda.gov/tobacco-products/rules-regulations-and-
guidance/center-tobacco-products-regulation- and-guidance-policy-agenda
---------------------------------------------------------------------------
    The Center continues to weigh competing priorities given available 
resources and updates the policy agenda annually. In the meantime, FDA 
receives information about foreign manufacturers as part of the 
premarket tobacco product application (PMTA) process. A PMTA must 
include information including a full statement of the components, 
ingredients, additives, and properties, and of the principle or 
principles of operation and a full description of the methods used in, 
and the facilities and controls used for, the manufacture, processing, 
and when relevant, packing and installation. This is true for 
applications from both domestic and foreign manufacturers.
                            unapproved drugs
    Question. I'm told there are reports of numerous unapproved 
phenobarbital drugs containing prohibited excipients that are currently 
marketed for use in neonates with seizures, which would present a 
serious safety threat for vulnerable infants.
    Has the FDA utilized its enforcement authority to remove unapproved 
phenobarbital drugs from the market and if not, does the Agency plan to 
do so this year?
    Answer. FDA approved Sezaby (phenobarbital sodium) in November 2022 
for the treatment of neonatal seizures in term and pre-term infants. 
Sezaby is an FDA-approved phenobarbital sodium injection product, and 
it is preservative-free. It is not approved for use in adolescents or 
adults, and its labeling includes a boxed warning that the product is 
only for short-term use.
    FDA is aware that there are a number of unapproved phenobarbital 
sodium injection products currently on the market. According to the 
labeling for some of these unapproved phenobarbital sodium products, 
these products are intended for use in the adult population as a 
sedative, hypnotic, preanesthetic, or long-term anticonvulsant and for 
use in pediatric patients as an anticonvulsant and sedative.
    In general, as with FDA's compliance activities across the Agency, 
we follow a risk-based enforcement approach that involves 
prioritization in light of the facts of a given circumstance. This 
includes prioritizing enforcement for drug products that pose the 
highest risk to public health. This risk-based enforcement approach 
best supports FDA's public health priorities. The Agency is currently 
reviewing a Citizen Petition regarding the marketing status of 
phenobarbital drugs and will respond to the Petition as soon as 
possible and post the response to the public petition docket.
                            food regulation
    Question. As I have stated before, FDA is the gold standard for 
safety and efficacy. However, I am concerned that some States are going 
beyond FDA in banning certain chemicals, ingredients, and additives in 
food.
    Is FDA concerned that these actions have the potential to leave us 
with a patchwork of food regulations, while at the same time, 
relinquishing FDA's authorities to the States?
    Answer. Yes, a strong national food safety system is not built 
state by State. Clearly, having States issue these types of bans, while 
they may be within their rights under our current regulatory system, is 
not ideal. States play a crucial role as our partners in regulating the 
food supply and coordinating our efforts is integral to our success. 
FDA must lead the way on food chemical safety. Not only because it is 
confusing for consumers for there to be different standards and 
impractical for industry, but because the determination of safety 
should be based entirely on science, and not on where you live in the 
U.S.
    FDA maintains active, and widely used, regulatory programs to 
assist industry in meeting its pre- market requirement to ensure all 
substances (including food chemicals) are safe under their intended 
conditions of use. All assessments of these ingredients are conducted 
by the Office of Food Additive Safety in FDA's Center for Food Safety 
and Applied Nutrition (CFSAN).
    Regardless of the regulatory program used (food additive or color 
additive petition process, food contact notification, or the Generally 
Recognized as Safe (GRAS) Notification Process), the safety standard 
must be met for all substances used by industry for use in food or food 
packaging that there is a reasonable certainty of no harm under the 
intended use conditions.
    Chemical safety is one of the three fundamental risk management 
pillars of the new FDA Human Foods Program, which is a recognition of 
the importance of our food chemical safety work. As the reorganization 
is finalized, we are continuing to implement our enhanced approach to 
food chemical safety designed to ensure we keep pace with innovation 
while maintaining as our first priority the safety of foods available 
to consumers.
                         food traceability rule
    Question. Will you commit to engage with the food industry to 
address the most challenging aspects of the Food Traceability Rule, 
including working with industry stakeholders to determine any changes 
that may be necessary to allow for successful compliance with the Rule?
    Answer. FDA remains committed to serious engagement with the food 
industry regarding the Food Traceability Rule. We continue to work 
closely with industry to help them prepare for implementation of the 
rule, including by providing technical assistance. We also are engaging 
in ongoing discussions with industry, organized by the Reagan-Udall 
Foundation, regarding challenges, opportunities, and potential 
solutions for implementation.
    Together, we can attain the Food Traceability Rule's public health 
goals of faster identification and rapid removal of potentially 
contaminated food from the market, resulting in fewer foodborne 
illnesses and deaths.
                           smoking cessation
    Question. HHS recently released an updated Framework to Support and 
Accelerate Smoking Cessation (the Framework). The Framework 
acknowledges that despite the progress made in the last 60 years to 
reduce the rates of cigarette smoking among U.S. adults cigarette 
smoking and secondhand smoke exposure still claim nearly half a million 
lives in the United States each year.
    Last year, on June 1, 2023, at a Cancer Moonshot event at The White 
House, you acknowledged some of the challenges those seeking to bring 
forward new smoking cessation products may encounter.
    What actions, if any, has CDER taken to help bring forward new, 
innovative smoking cessation medicines for patients?
    Answer. As smoking results in many serious or life-threatening 
conditions (e.g., heart and lung disease and cancer), FDA recognizes 
there is an unmet need for novel therapies particularly for individuals 
who have not been able to quit despite available therapies.
    Because we consider nicotine dependence to be a serious or life-
threatening condition with an unmet medical need, we are encouraging 
development of novel smoking cessation drug therapies that show benefit 
over existing products by outlining how to qualify expedited 
development pathways such as fast track, breakthrough, and priority 
review.
    In May 2023, CDER finalized the draft guidance Smoking Cessation 
and Related Indications: Developing Nicotine Replacement Therapy [NRT] 
Drug Products.\19\ The NRT Guidance outlines strategies for applicants 
to make NRT development easier, efficient, and streamlined:
---------------------------------------------------------------------------
    \19\ https://www.fda.gov/regulatory-information/search-fda-
guidance-documents/smoking-cessation-and-related- indications-
developing-nicotine-replacement-therapy-drug-products

  --Clarifying the appropriate pathways for companies that seek 
        approval for a product that alters the route of administration 
        compared to approved NRT drug products, e.g., products with 
        pulmonary route of administration rather than an oral route of 
---------------------------------------------------------------------------
        administration.

  --Explaining when simplified efficacy study requirements may be used 
        (e.g., recommending a 4-week study as the minimum period of 
        efficacy ascertainment)

  --Clearly outlining abbreviated pathways for NRT products, including 
        how to use FDA's previous findings of safety and how already 
        approved NRT products and published literature can be 
        leveraged.

  --Encouraging sponsors to consider expedited development and review 
        pathways, as well as providing details on how to qualify.

    In addition, because the data are so strong in demonstrating that 
quitting smoking can lower a person's chance of having lung disease, 
heart disease, and certain types of cancer, drug products that have 
been demonstrated to be effective for cessation are approved with 
labeling claims regarding these benefits without additional data 
supporting benefit of the particular product on these outcomes.
    To support the majority of smokers who wish to quit and to increase 
utilization of cessation products and interventions, FDA and the 
National Institutes of Health (NIH) are collaborating to identify 
opportunities for the development of novel therapies, support 
innovative trial designs, and facilitate product development for 
smoking cessation therapies. Opportunities for innovation exist in many 
areas including collaboration with researchers to help identify novel 
targets, use of innovative clinical trial design and conduct, inclusion 
of individuals underrepresented in research, developing a better 
understanding of quit failures and relapse, and utilizing FDA's 
expedited programs for medical product development.
    To this end, FDA will hold a joint public meeting with NIH this 
Fall to discuss innovations in development of smoking cessation 
products, and we anticipate the Federal Register notice for that 
meeting to be announced in the near future.
    Question. What new actions does CDER plan to take, if any, in 
addition to the guidance previously issued?
    Answer. Please see response to previous question.
    Question. Does the agency believe additional, new smoking cessation 
therapies are needed to help patients be more successful in their quit 
attempts? If so, what new actions will CDER take to expand and improve 
treatment options for smokers seeking to be more successful in their 
quit attempts.
    Answer. Please see response to previous question.
    Question. What steps is FDA taking to make sure that the regulation 
of cessation medicines is keeping pace with the ongoing unmet clinical 
needs and public health urgency in helping patients be more successful 
in their quit attempts? Please specify the timeline for such action 
underway and or planned for the future. Please also specify the metrics 
the agency is using to track progress on these actions.
    Answer. Please see response to previous question.
    Additionally, it is important to note that FDA does not develop 
drugs. Historically, FDA has seen limited interest from sponsors in 
developing nicotine replacement therapy products and we have not seen a 
recent change. All New Drug Applications are subject to the performance 
goals and procedures for the Prescription Drug User Fee Act (PDUFA VII) 
2023-2027. Please see the PDUFA VII commitment letter for more 
information.\20\ The goals letter represents the product of FDA's 
discussions with the regulated industry and public stakeholders, as 
mandated by Congress.
---------------------------------------------------------------------------
    \20\ https://www.fda.gov/media/151712/download?attachment
---------------------------------------------------------------------------
          draft report and plan on best practices for guidance
    Question. Earlier this year, FDA published a ``Draft Report and 
Plan on Best Practices for Guidance'' which proposes eliminating the 
notice and comment period for Level 1 guidance documents. FDA currently 
has the authority to issue Level 1 guidance documents without prior 
public participation when responding to urgent issues, and did so 
during the COVID-19 pandemic.
    What policy objective is FDA seeking to achieve by seemingly 
expanding this policy?
    Has FDA examined the costs and any potential unintended 
consequences associated with this policy, and if so, what has the 
agency found?
    How does publication of a draft version of significant guidance 
documents allow patient groups, health care professionals, and other 
stakeholders the opportunity to prepare prior to implementation? Is FDA 
concerned this policy change could impact productive stakeholder 
engagement with FDA?
    Answer. Following FDA's rapid issuance of over 80 guidance 
documents (not including revisions) related to the COVID-19 public 
health emergency, including many that were issued without prior public 
comment, section 2505(a) of the Consolidated Appropriations Act, 2023 
was enacted. In that provision, Congress directed FDA to examine our 
practices for the efficient prioritization, development, review, 
clearance, issuance, and use of FDA guidance documents.
    FDA guidance documents are prepared for regulated industry, FDA 
staff, and the public to describe the Agency's interpretation of, or 
policy on, a regulatory issue.\21\ Unlike statutes and regulations, 
guidance documents do not establish legally enforceable rights or 
responsibilities and are thus exempt from notice and comment 
requirements applicable to most rulemaking under the Administrative 
Procedure Act.\22\ However, the Federal Food, Drug, and Cosmetic Act 
(FD&C Act) and FDA's Good Guidance Practices regulation require FDA to 
provide an opportunity for public comment prior to publication for all 
Level 1 guidance documents (i.e., guidance documents that include 
initial interpretations of a statute or regulation, changes in 
interpretation or policy that are of more than a minor nature, complex 
scientific issues, or highly controversial issues), unless FDA 
determines that prior public participation is not feasible or 
appropriate.\23\ If FDA determines that public participation is not 
feasible or appropriate prior to publication of a guidance document, 
FDA must invite public comment upon publication and take such comment 
into consideration.\24\ For Level 2 guidance documents (i.e., guidance 
documents that set forth existing practices or minor changes in 
interpretation or policy), FDA invites public comment upon 
publication.\25\
---------------------------------------------------------------------------
    \21\ See 21 CFR 10.115(b)
    \22\ See 21 CFR 10.115(d); 5 U.S.C. 553(b)(A); (d)(2)
    \23\ See 21 U.S.C. 371(h)(1)(C)(i); 21 CFR 10.115(g)
    \24\ See 21 U.S.C. 371(h)(1)(C)(i); 21 CFR 10.115(g)(3)
    \25\ See 21 U.S.C. 371(h)(1)(D); 21 CFR 10.115(g)(4)
---------------------------------------------------------------------------
    In accordance with the directive in section 2505(a) of the 
Consolidated Appropriations Act, 2023, FDA issued a ``Draft Report and 
Plan on Best Practices for Guidance'' (2023 Draft Report and Plan) 
identifying proposed best practices for the efficient prioritization, 
development, review, clearance, issuance, and use of guidance 
documents. This included considering whether, consistent with the FD&C 
Act, there are additional categories of Level 1 documents for which, or 
circumstances under which, FDA could use our authority to issue Level 1 
guidance documents ``for immediate implementation,'' meaning without 
prior public comment. This proposal is consistent with recommendations 
FDA made in its 2011 report ``Food and Drug Administration Report on 
Good Guidance Practices Improving Efficiency and Transparency'' and is 
based upon over 20 years of FDA experience in implementing its Good 
Guidance Practices and experience gained during the COVID-19 Public 
Health Emergency.
    Consistent with section 2505(c) of the Consolidated Appropriations 
Act, 2023, in a Federal Register notice announcing the availability of 
the 2023 Draft Report and Plan, FDA sought public comment from a broad 
range of commenters, including regulated industry; researchers; 
academic organizations; pharmaceutical, biotechnology, and medical 
device developers; clinical research organizations; clinical 
laboratories; health care providers; food manufacturers; and consumer 
and patient groups. FDA is carefully considering comments as it 
prepares its final report and plan.
                          grain reconditioning
    Question. The FDA's grain reconditioning process plays a critical 
role in the exporting of U.S. bulk commodities, which gets high-quality 
crops from American farmers to their customers around the world. 
Recently, I have heard concerns regarding the timing of reconditioning 
plan approvals.
    Is the FDA reviewing the reconditioning process to identify ways to 
minimize delays? If so, please provide details and a timeline for 
implementation.
    Answer. FDA is aware of the concerns from industry regarding 
reconditioning proposals and is collaborating with our Federal partners 
at the USDA Federal Grain Inspection Service (FGIS) to address them. 
For background, the reconditioning process can occur when adulterated 
grain is identified at a point of export. In order to address food 
safety concerns, a firm can propose a reconditioning plan, which FDA 
may accept. FDA and FGIS work under a Memorandum of Understanding (MOU 
225-80-2000)\26\ to facilitate interagency coordination on the 
inspection and standardization of grain, rice, pulses, and other food 
products assigned to FGIS by the Secretary of Agriculture. FDA and FGIS 
have worked to identify procedures involved in the grain reconditioning 
process that can be streamlined to help address these timeliness 
concerns and are working to finalize these modified procedures in FY 
2025.
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    \26\ https://www.fda.gov/about-fda/domestic-mous/mou-225-80-2000

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                                 ______
                                 

             Questions Submitted by Senator Mitch McConnell
                               tobacco 21
    Question. In 2019, to address growing youth tobacco use, Congress 
passed legislation raising the minimum age to purchase tobacco from 18 
to 21. 180 days after enactment of that legislation, FDA was required 
to promogulate a rule to update all references to persons younger than 
18 years of age in subpart B of part 1140 of title 21, Code of Federal 
Regulations, and to update the relevant age verification requirements 
under part 1140 to require age verification for individuals under the 
age of 30. However, nearly 4 years after the congressionally mandated 
deadline, FDA has not produced a final rule. In response to questions 
from letters in 2022 and 2023, FDA indicate that regulations would be 
forthcoming. A final rule has been repeatedly delayed without 
explanation, and in response to previous letters, FDA indicated it 
cannot provide an update on specific timing of the rulemaking process.
    Please provide an update on the status of the final rule, including 
an explanation for the continuous delays.
    Please explain the impact of the delayed rulemaking on 
implementation of the Tobacco 21 legislation. What negative effects on 
public health are occurring because of the lack of updated regulation?
    In the absence of the congressionally mandated final rule, how does 
FDA plan to measure retailer compliance of ID checks and communicate 
these requirements to States and retailers?
    Answer. Soon after the enactment of the Tobacco 21 legislation in 
December 2019, FDA began implementing and enforcing the law's increased 
Federal minimum age of sale by incorporating the increased age into 
FDA's tobacco retail inspections and other surveillance activities.
    Importantly, the Agency has continued to enforce the statutory 
requirement that retailers not sell tobacco products to anyone under 
the age of 21.
    Following the May 8th hearing, on August 30, 2024, FDA published 
the Prohibition of Sale of Tobacco Products to Persons Younger than 21 
Years of Age final rule. Until the final rule goes into effect on 
September 30, 2024, the current requirement of verifying identification 
by means of photo identification for those under 27 years of age 
remains. Once the final rule goes into effect on September 30, 2024, 
verifying identification will be required for those under 30 years of 
age. In the interim, FDA has provided educational materials to 
retailers, such as updated webinars, describing how brick-and-mortar 
and online retailers must comply with FDA's tobacco sale regulations, 
and we continue to use our compliance and enforcement tools to ensure 
retailers comply with requirements.
    As noted above, FDA implemented and began enforcing the Tobacco 21 
law by incorporating changes into FDA's tobacco retail inspection 
program. From January 1, 2020, to April 30, 2024, FDA conducted over 
330,000 inspections and issued over 43,200 warning letters (over 12,200 
pertained to sales of electronic nicotine delivery system (ENDS) 
products to individuals under the age of 21), and filed over 8,900 
complaints for civil money penalties (2,500 pertained to sales of ENDS 
products to individuals under the age of 21), and 33 complaints for no-
tobacco-sale orders to retail establishments where violations were 
found during compliance check inspections.

                                 ______
                                 

            Questions Submitted by Senator Susan M. Collins
                         neurology drug program
    Question. I have led efforts in Congress to provide funding for the 
Neurology Drug Program to help streamline the delivery of innovative 
treatments to individuals with brain diseases, mental health 
conditions, and brain injuries. Congress provided $2 million for the 
Neurology Drug Program in FY23 and FY24. My understanding is that FDA 
has hired 2 FTEs to carry out this work so far. Can you share more 
about the responsibilities of these individuals, including tangible 
examples of the work they are leading with the support of NDP funding? 
Do you plan to hire additional staff to support these efforts? How 
could you use additional funding to advance treatments for brain 
diseases and disorders? Please speak directly to patient engagement 
efforts that the agency could expand or begin.
    Answer. While this is a non-exhaustive list, please find several 
examples below of how FDA has utilized this critical funding, and how 
the Agency would propose to utilize additional funding.
                                  cder
    In FY 2023, FDA's Center for Drug Evaluation and Research (CDER) 
utilized the appropriated funding for the NDP to hire 2 FTEs to support 
the program. In FY 2024, a third FTE, with training in 
neurodevelopmental disorders, has been hired to support drug 
development for rare pediatric neurogenetic disorders. These staff 
members have provided critical support to develop new policy and 
guidance in this area, as well in supporting product review. 
Specifically, these CDER staff were instrumental to the approvals of 
four new therapies for neurological disease in 2023: Skyclarys 
(omaveloxolone) for the treatment of Friedreich's ataxia approved on 
February 28, 2023; Qalsody (tofersen) for the treatment of amyotrophic 
lateral sclerosis (ALS) in patients who have a mutation in the 
superoxide dismutase 1 (SOD1) gene approved on April 25, 2023; Leqembi 
(lecanemab) on January 6, 2023 and July 6, 2023 for the treatment of 
Alzheimer's disease; and Agamree (vamorolone) for the treatment of 
Duchenne muscular dystrophy. For 2024, these staff have contributed to 
the approval of two new therapies for neurologic disease: Duuvyzat 
(givinostat) for the treatment of Duchenne muscular dystrophy approved 
on March 21, 2024, and Kisunla (donanemab) for the treatment of 
Alzheimer's disease approved on July 2, 2024, among other activities. 
CDER staff have also directed a multi-year grant to address challenges 
in neurological disease drug development through the development of 
innovative model-informed drug development to inform clinical trial 
design.
                                  cber
    Within the Center for Biologics Evaluation and Research (CBER), 
funding has been utilized to initiate a research project focused on the 
identification of neural stem cell (NSC) quality attributes that can be 
used to evaluate cellular therapy products and to improve 
manufacturing. Results from this research may be useful in defining 
methods and standards for the evaluation of the quality of NSC 
products. CBER has also used the NDP funds to implement FDA's Action 
Plan for Rare Neurodegenerative Diseases. This included participating 
in a Pelizaeus Merzbacher Disease patient listening session held on 
August 22, 2023. Additionally, CBER is in the process of hiring two 
staff. One of the planned FTE is for a neurology specialist to support 
additional guidance to industry, building on the final guidance CBER 
published last year on Human Gene Therapy for Neurodegenerative 
Diseases. The new staff will also contribute to CBER's engagement in 
the activities outlined in FDA's Action Plan for Rare Neurodegenerative 
Diseases, including the development of disease-specific science 
strategies and engagement in the Public-Private Partnership for Rare 
Neurodegenerative Diseases.
                                  cdrh
    The Center for Devices and Radiological Health (CDRH) has utilized 
NDP funds to hire a medical officer with expertise in neurology and 
device development. This individual has taken clinical lead on novel 
brain neurostimulation device submissions focused on Movement Disorders 
such as Parkinson's Disease. This includes several files as part of 
CDRH's Total Product Life Cycle (TPLC) Advisory Program (TAP) Pilot 
which focuses on including external stakeholder voices, such as patient 
advocacy organizations and clinical professional societies, in the 
device development process. Increased staff through the NDP program 
enables continued outreach to community partners.
                proposed uses of additional ndp dollars
    Additional funding would help support NDP efforts in three ways. 
First, the Agency currently receives a large number of requests for 
external engagement activities in the neuroscience space, and many of 
these requests must be declined due to inadequate resources. Additional 
funding would allow for the recruitment of additional FTEs to be hired 
and trained to assist with these activities. Second, additional funding 
would allow for the NDP to fund more research efforts in the 
neuroscience space to address and advance drug development. And 
finally, additional funding would allow for continued expansion of 
patient engagement and educational activities specific to neurologic 
and psychiatric diseases. The NDP staff recognize the need for patient 
engagement and the critical information that both FDA and patients 
learn from one another.
    With the growing innovation in clinical trial design and the uptake 
of innovation in neurology and psychiatry trials, the NDP will need to 
actively engage with key stakeholders to better understand, develop and 
implement these innovations into clinical trials.

                                 ______
                                 

               Questions Submitted by Senator Jerry Moran
                         food traceability rule
    Question. Dr. Califf, your agency, issued the final Food 
Traceability Rule with a compliance date of January 2026. Based on the 
information I am receiving from the food industry, from growers to 
point-of-sale, this Rule intends to regulate tens of thousands of 
products, costing tens of billions of dollars for the food industry to 
implement, and ultimately, consumers will pay the price at the grocery 
store.
    Food industry stakeholders have serious concerns about meeting the 
compliance standards with the Food Traceability Rule by the current 
implementation date.
    I do want to be clear: I agree we should have a sense of food 
traceability, but this Rule, according to the industry, is overly broad 
and complex, which will create a huge burden that is, at this time, 
unworkable for the industry and I think it would be in the interest of 
your agency to work with the industry more effectively.
    Given the importance of the States in assisting FDA to achieve its 
public health goals, what alternatives are you considering to support 
an integrated food safety system and ensure an over one hundred year 
relationship between the States and FDA continues and flourishes from 
this cooperation between Federal and State governments?
    Answer. FDA's Food Traceability Rule establishes traceability 
recordkeeping requirements to allow for faster identification and rapid 
removal of potentially contaminated food from the market, so as to 
reduce foodborne illnesses and deaths.
    The Agency continues to work closely with industry to help them 
prepare for implementation of the rule, including by providing 
technical assistance. We also are engaging in ongoing discussions with 
industry, organized by the Reagan-Udall Foundation, regarding 
challenges, opportunities, and potential solutions for implementation. 
Working together on implementation is expected to offer industry 
benefits by helping narrow the scope of necessary recall actions, which 
reduces expenditures by avoiding overly broad market withdrawals and 
mitigates potential loss of consumer confidence in their brands. 
Industry benefits from the rule may also include increased food supply 
system efficiencies, such as improvements in supply chain management 
and inventory control.
    FDA values its longstanding partnerships with the States, and we 
have enhanced our collaborative activities over the past decade by 
building an Integrated Food Safety System (IFSS), which provides a 
coordinated approach to food safety. FDA recognizes the importance of 
engaging our State and local regulatory partners who will play a key 
role in successful implementation of the Food Traceability Rule. Their 
input is particularly important given their role in primarily 
regulating retail food establishments and restaurants. FDA is currently 
in the process of soliciting feedback from state/local partners on a 
proposed Food Traceability Rule inspectional framework as well as 
engaging state partners in development of a compliance strategy for the 
rule.
    We are committed to working with industry and IFSS partners towards 
our shared public health goal of reducing foodborne illness. In a 
complex and global food system, it is critical to protect consumers 
from contaminated products by being able to rapidly identify the source 
of these products and removing them from the marketplace as quickly as 
possible.
    Question. Can you commit that the FDA will begin serious engagement 
with the food industry to address the most problematic provisions of 
the Rule while extending the compliance deadline to allow both FDA and 
industry to work collaboratively to refine the Rule?
    Answer. FDA remains committed to serious engagement with the food 
industry regarding the Food Traceability Rule. We continue to work 
closely with industry to help them prepare for implementation of the 
rule, including by providing technical assistance. We also are engaging 
in ongoing discussions, organized by the Reagan-Udall Foundation, 
regarding challenges, opportunities, and potential solutions for 
implementation.
    To give industry additional time, we extended the compliance date 
when we finalized the Food Traceability Rule from 2 years to 3 years 
from the effective date. We have also communicated that routine 
inspections under the Food Traceability Rule will not begin until 2027 
to give covered entities additional time to work together and ensure 
that traceability information is being maintained and shared.
    Together, we can attain the Food Traceability Rule's public health 
goals of faster identification and rapid removal of potentially 
contaminated food from the market, resulting in fewer foodborne 
illnesses and deaths.
                         animal food additives
    Question. Thank you for your agency's acknowledgment of our work in 
the Senate and the House to address animal feed ingredients in your 
budget request.
    Dairy farmers in Kansas and across the United States are eager for 
proactive tools to help them build on their environmental stewardship 
work. One opportunity lies with FDA approval of animal feed ingredients 
with a proven track record in other countries. That last point is 
important because everyday products aren't approved here, and our 
farmers lose a competitive edge over their global counterparts.
    Are you able to update us on your agency's efforts to authorize 
these products?
    Answer. 1In the EU and Canada, the regulatory structures for animal 
food ingredients allow many products that are currently classified as 
drugs in the U.S. to be classified as animal food additives in those 
countries. This is not the case under FDA's statutory authority, which 
is why the Agency's fiscal year 2025 budget request included a 
legislative proposal that would establish a new legal framework for the 
approval and marketing of ingredients that would be defined as 
``zootechnical animal food substances'' (ZAFS). This new regulatory 
authority would deem to be animal food additives certain substances for 
use in animal food or drinking water that function solely in the gut of 
an animal to: affect the byproducts of the digestive process of an 
animal, affect the gastrointestinal microbiome of the animal, or reduce 
pathogens in food products made from the animal. We believe the 
proposal to regulate these substances as animal food additives is 
responsive to the interests of stakeholders in developing and marketing 
such innovative products while still providing the appropriate safety 
review. We look forward to working with Congress to continue to advance 
this proposal.
    More broadly, thanks to additional funding provided by Congress in 
recent years, timelines for animal food ingredient reviews have moved 
from 44% of reviews on time to 90% of reviews on time. Continued 
support would assist in improving our timelines and preparing FDA to 
receive additional product submissions if the ZAFs legislation is 
enacted. Our goal is to achieve faster market access and availability 
of safe animal food additive products for farmers.
    Question. We have been working with stakeholders to find a way to 
create a pathway for your agency to approve innovative feed ingredients 
through the standard feed ingredient review process instead of the 
cumbersome, inappropriate, and unnecessary drug approval process.
    Towards this end, I introduced the Innovative FEED Act with several 
of my colleagues, including Senator Baldwin, and we have the support of 
the full committee Vice Chair Senator Collins.
    Dr. Califf, can you talk a little about how the passage of this 
bill would change or improve the process that is used today? Would the 
legislation provide the Center for Veterinary Medicine (CVM) with 
greater regulatory certainty or help streamline workstreams and 
regulation approaches at FDA?
    Answer. FDA cannot comment on pending legislation. However, FDA 
does share the goal of the legislation, which is consistent with a 
legislative proposal included in FDA's FY 2025 Budget request to create 
a new category of animal food additives called zootechnical animal food 
substances (ZAFS). Specifically, certain substances would meet the 
definition of ZAFS if they are intended to be added to animal food or 
drinking water, act solely in the animal's GI tract, and have no 
nutritive value or technical effect on the animal food but have other 
important benefits, such as affecting the byproducts of digestion, 
reducing foodborne pathogens in food animals, or altering the animal's 
GI microbiome. This legislative change would give FDA increased 
flexibility to provide risk-based oversight and facilitate more timely 
availability of innovative animal food additives. Under this proposal, 
ZAFSs would be deemed to be food additives, and would not be animal 
drugs, despite having intended uses that could otherwise make them 
animal drugs under the FD&C Act.
                                 sodium
    Question. Dr. Califf, given your background as a cardiologist, I 
want to discuss sodium and the complex nature of food supply chains and 
dietary habits.
    How does the FDA intend to assess the effectiveness of sodium 
reduction efforts on population- wide sodium intake and associated 
health outcomes? Are there specific metrics or studies planned to 
evaluate the impact of these initiatives?
    Answer. A key part of the FDA's sodium reduction plan is to monitor 
progress toward our goals on a regular basis to understand changes that 
are occurring. Following the May 8th hearing, in August 2024, the 
Agency issued a draft guidance \32\ for new 3-year voluntary sodium 
reduction targets in foods as part of Phase II of the Agency's ongoing 
work building on the Phase I reduction efforts \33\ issued in October 
2021 using food label, restaurant, and sales data.
---------------------------------------------------------------------------
    \32\ Voluntary Sodium Reduction Goals: Target Mean and Upper Bound 
Concentrations for Sodium in Commercially Processed, Packaged, and 
Prepared Foods (Edition 2)
    \33\ https://www.fda.gov/regulatory-information/search-fda-
guidance-documents/guidance-industry-voluntary- sodium-reduction-goals
---------------------------------------------------------------------------
    Preliminary data \34\ from the first phase has shown that about 40% 
of food categories had already reached the targets set in the 2021 
guidance, or were close. The new voluntary targets, when finalized, 
would support reducing sodium intake to about 2,750 milligrams/day (mg/
day), approximately 20% lower than intake prior to the Phase 1 targets 
outlined in the FDA's 2021 final guidance.
---------------------------------------------------------------------------
    \34\ https://www.fda.gov/food/food-labeling-nutrition/sodium-
reduction-us-food-supply-2010-2022-preliminary- assessment-progress
---------------------------------------------------------------------------
    These new targets for industry are also intended to help address 
the excess intake of sodium in the U.S., which is currently almost 50 
percent more on average than the recommended limit. Going forward, the 
Agency intends to conduct an assessment of progress on sodium reduction 
to the targets about every 3 years. As more data becomes available, FDA 
will also continue to work with other government agencies, such as the 
U.S. Department of Agriculture and the Centers for Disease Control and 
Prevention on these monitoring efforts.
    Question. Are there plans to establish further sodium reduction 
targets beyond the current voluntary initiatives? If so, what factors 
will be considered in setting these targets, and how will stakeholders, 
including industry representatives and public health experts, be 
involved in the process?
    Answer. FDA is currently evaluating progress towards the 2.5 year 
targets in the voluntary sodium reduction guidance that the FDA issued 
in October 2021 \35\ using food label, restaurant, and sales data, and 
has engaged extensively with stakeholders on sodium reduction efforts 
and the targets. Preliminary data has shown that about 40% of food 
categories had already reached the targets set in the 2021 guidance, or 
were very close. Additionally, FDA intends to conduct an assessment of 
progress on sodium reduction relative to the targets about every 3 
years.
---------------------------------------------------------------------------
    \35\ https://www.fda.gov/regulatory-information/search-fda-
guidance-documents/guidance-industry-voluntary- sodium-reduction-goals
---------------------------------------------------------------------------
    Additionally, following the May 8th hearing, on August 15, 2024, 
FDA issued a draft guidance \36\ to establish Phase 2 of the voluntary 
sodium reduction targets to continue facilitating a gradual, iterative 
process to reduce sodium intake. The new targets focus on commercially 
processed, packaged and prepared foods in the marketplace, because more 
than 70 percent of sodium intake in the U.S. population is from sodium 
added during food manufacturing and commercial food preparation. While 
the new targets are still higher than the recommended 2,300 mg/day for 
those 14 years and older, the new targets are part of an iterative 
approach that balances the public health objective with the 
practicality of shifting industry practices and consumer preferences to 
advance public health. The draft guidance is also available for public 
comment.
---------------------------------------------------------------------------
    \36\ https://www.fda.gov/regulatory-information/search-fda-
guidance-documents/draft-guidance-industry-voluntary- sodium-reduction-
goals-edition-2

---------------------------------------------------------------------------
                                 ______
                                 

            Questions Submitted by Senator Cindy Hyde-Smith
                            tobacco products
    Question. The FDA writes regulatory rules all the time. Yet, in two 
House hearings in April, you described the FDA as ``the referee'' that 
``doesn't write the rules, Congress does.'' There are at least two FDA 
rules that would go a long way toward dealing with the illicit e-vapor 
market that FDA has been sitting on for some time. First, you stated 
you were unaware of the pending Foreign Manufacturer Rule, which has 
been on FDA's Unified Agenda in some form since 2012. It is currently 
listed in the ``Long Term Actions'' stage of rulemaking and the Notice 
of Proposed Rulemaking date was pushed back again--from May 2024 to 
November 2024. Why hasn't the FDA issued the rule requiring foreign 
tobacco product manufacturers to register with the Center for Tobacco 
Products (a loophole that is being exploited by the Chinese 
manufacturers now making illegal e-vapor products)? Why can't the FDA 
issue an Interim Final Rule given the level of urgency we are facing?
    Answer. To issue an interim final rule, FDA must for good cause 
find that the notice and public comment procedures for such rulemaking 
are impracticable, unnecessary, or contrary to the public interest. At 
this time, FDA has not identified a strong basis to make such 
conclusions for purposes of issuing the tobacco manufacturer 
registration rule. FDA will continue to work on the Establishment 
Registration and Product Listing for Tobacco Products proposed rule, 
which appeared in the most recent Unified Agenda.\37\ CTP also included 
the rule on its recently published policy agenda which outlines rules 
and guidance documents that are in development or planned for 
development.\38\
---------------------------------------------------------------------------
    \37\ https://www.reginfo.gov/public/do/eAgendaMain
    \38\ https://www.fda.gov/tobacco-products/rules-regulations-and-
guidance/center-tobacco-products-regulation- and-guidance-policy-agenda
---------------------------------------------------------------------------
    The Center has gained valuable experience in implementing 
registration and listing for domestic establishments that is informing 
development of the rule. The proposed regulation would prescribe the 
format, content, and procedures for establishment registration and 
tobacco product listings for both domestic and foreign manufacturers of 
tobacco products. Although the requirement for domestic manufacturers 
to register and list is in the statute, the proposed rule would 
describe the types of data required for submission and help ensure the 
data submitted by industry can best be used by FDA.
    The Center continues to weigh competing priorities given available 
resources and updates the policy agenda annually. In the meantime, FDA 
receives information about foreign manufacturers as part of the 
premarket tobacco product application (PMTA) process. A PMTA must 
include information including a full statement of the components, 
ingredients, additives, and properties, and of the principle or 
principles of operation and a full description of the methods used in, 
and the facilities and controls used for, the manufacture, processing, 
and when relevant, packing and installation. This is true for 
applications from both domestic and foreign manufacturers.
    Question. Second, an FDA rule to require an importer of e-vapor 
products to submit the product's FDA PMTA number at the time of entry 
in U.S. Customs and Border Protection's (CBP) Automated Commercial 
Environment (ACE) system has been on FDA's Unified Agenda since 
publication in the Fall 2021 Agenda. This rule could potentially help 
CBP and FDA prevent illicit products from ever entering the country. 
The Notice of Proposed Rulemaking is currently listed as January 2024. 
When FDA has continually stated that the importation of illicit, non-
compliant e- cigarettes from China is a major problem, why has this 
rule been pushed back? Why can't the FDA issue an Interim Final Rule 
given the level of urgency we are facing?
    Answer. Following the May 8th hearing, the Agency, with the 
Department of Treasury's concurrence, issued a proposed rule to require 
that the submission tracking number for electronic nicotine delivery 
system tobacco products that are being imported or offered for import 
be submitted in the Automated Commercial Environment or any other 
electronic data interchange system authorized by U.S. Customs and 
Border Protection, at the time of entry. The proposed rule was issued 
on August 16, 2024, and the Agency is accepting public comment on the 
rulemaking through October 15, 2024.\39\
---------------------------------------------------------------------------
    \39\ https://www.federalregister.gov/documents/2024/08/16/2024-
18343/submission-of-food-and-drug- administration-import-data-in-the-
automated-commercial-environment-for
---------------------------------------------------------------------------
    Question. We know that FDA has issued import alerts for some e-
vapor products, but that not all e-vapor products that are the subject 
of warning letters are covered in the current import alerts. Can you 
issue a product-wide import alert for all e-vapor products, with the 
products that have been FDA- authorized or that have pending 
applications being the exception? If not, why not? If yes, will you 
commit to issue that blanket import alert as soon as possible?
    Answer. Taking action against illegal tobacco products across the 
supply chain--including importation--is a top priority for FDA in 
coordination with Federal partners. FDA works with Customs and Border 
Protection (CBP) to prevent illegal tobacco products, including e-
cigarettes, from entering the country. Additionally, CBP and FDA, as 
well as the U.S. Postal Service at the International Mail Facilities, 
work collaboratively to screen products at entry for compliance with 
applicable requirements.
    FDA uses import alerts to help flag for its staff products that can 
be detained without physical examination, including many unauthorized 
e-cigarettes from China. However, import alerts only help when products 
are accurately declared at the time of import, and bad actors are not 
typically inclined to do that. CBP and other Federal partners are best 
suited to identify and interdict against fraudulently declared products 
and we continue to coordinate with them. For example, CBP is able to 
identify and can seize a mis-declared product under their authority--
such as the 1.4 million units of unauthorized e-cigarettes products 
seized at LAX airport last year.
    Given that multiple agencies serve an important role in preventing 
entry of unauthorized e- cigarettes into the United States, an ``All of 
Government'' approach is critical. Accordingly, following the May 8th 
hearing, on June 10, 2024, FDA and the Department of Justice announced 
the establishment of a Task Force to bring together and coordinate 
relevant expertise, operational abilities, and enforcement authority to 
strengthen our efforts related to unauthorized e-cigarettes. FDA and 
DOJ co-lead the Task Force, which includes CBP, the Bureau of Alcohol, 
Tobacco, Firearms, and Explosives, the Federal Trade Commission, the 
U.S. Marshals Service, and the
    U.S. Postal Inspection Service. The Task Force will provide more 
opportunities for communications and collaborations in this ``All of 
Government'' approach. We are committed to engaging in more joint 
operations with our Federal partners, and prioritizing this work, while 
maintaining our comprehensive approach along the entire supply chain to 
address unauthorized products from being imported, manufactured, 
distributed, and sold domestically.
    Question. During your testimony in the House, you described how 
there are many tricks that importers use to evade proper inspection and 
denial or seizure of their goods--such as mislabeling e-vapor products 
as ``lanterns.'' You testified that ``there is a timeframe by which if 
we [FDA] don't do something, the product goes on through.'' Please 
expand on that testimony--what is that timeframe? Is it administrative 
or statutory law? What other rules govern the authorities to hold 
product for inspection or seize product for destruction at 
international mail ports that Congress should consider amending to 
extend the FDA timeframe to respond?
    Answer. An FDA entry decision must be made prior to the end of the 
conditional release period (within 30 calendar days after CBP has 
conditionally released the product), unless otherwise extended. FDA is 
evaluating our enforcement authorities, including where there may be 
challenges or barriers to using these tools effectively.
    Additionally, FDA uses import alerts to help flag for its staff 
products that can be detained without physical examination, including 
many unauthorized e-cigarettes from China. There are multiple import 
alerts in place; one is for detention without examination of e-
cigarettes that do not have premarket authorization. If an imported 
product is not on the list of authorized products, then FDA and CBP 
consult on detainment. However, import alerts only help when products 
are accurately declared at the time of import, and bad actors are not 
typically inclined to do that. CBP and other Federal partners are best 
suited to identify and interdict against fraudulently declared products 
and we continue to coordinate with them.
    It is important to note that CBP and FDA have different 
authorities. CBP can seize a product under their authority for mis-
declared products. CBP can also seize unauthorized tobacco products 
that are in violation of the Federal Food, Drug, and Cosmetic Act. FDA 
can refuse admission of unauthorized tobacco products. If FDA were to 
seize a product, we must work with the Department of Justice (DOJ) to 
obtain a court order and engage with U.S. Marshals to seize the 
product. Seizures must be coordinated and filed through the U.S. 
Attorney's Office for the district where the goods are physically 
located. Therefore, we rely on other Federal agencies to assist with 
such enforcement actions and we must prioritize our requests.
    We also work with CBP to conduct targeted operations and seize 
products. For example, in December 2023, FDA, in collaboration with 
CBP, announced the seizure of approximately 1.4 million units of 
unauthorized e-cigarette products, including brands such as Elf Bar. 
These actions were part of a three-day joint operation which resulted 
in the seizure of 41 shipments containing illegal e-cigarettes with a 
total value of more than $18 million. This mis-declared product 
investigation took 3 months. Enforcement against mis-declared products 
is resource- and time- intensive. FDA continues to explore additional 
authorities or tools that would help us better execute our public 
health mission.
    Question. In the House, you testified that FDA ``can't be in 
300,000 stores'' and that you need more user fee money to ``put many 
more people on the ground.'' FDA already has inspection contracts in 
place in all 50 States with entities whose specific task is to perform 
on-site inspections of retailers at those 300,000 stores. FDA has spent 
more than $480 million on this critically important and comprehensive 
enforcement and monitoring system. That is how you were able to issue 
thousands of citations for underage sales last year. It seems the same 
inspectors can be used for illicit e-vapor enforcement, just like they 
are used for underage sales enforcement. What direction have you given 
to your state inspection contractors to look for the presence of 
illicit e- vapor products, including Chinese disposable vapor products, 
and to take enforcement action?
    Answer. FDA has a comprehensive compliance and enforcement program 
that spans the entire supply chain, including targeting manufacturers, 
importers, distributors, and retailers.
    FDA has an inventory of over 300,000 tobacco retailers that it 
inspects, which includes those selling e-cigarette products. FDA's 
tobacco retailer inspections cover the marketing, sale, and 
distribution of tobacco products at retail locations and is currently 
set up to identify unauthorized tobacco products along with underage 
sales. FDA-commissioned inspectors conduct two types of compliance 
check inspections for the Agency. During Undercover Buy Inspections, 
the retailer is unaware an inspection is taking place and a trained 
underage person, working with an FDA-commissioned inspector, attempts 
to purchase regulated tobacco products to determine compliance with 
identification check and minimum age of sale requirements. Currently, 
underage inspectors are not used to identify other violations, such as 
unauthorized products.
    Expanding Underage Buy Inspections to other violations is a complex 
process that FDA is currently looking in to. During an Advertising and 
Labeling Inspection, FDA-commissioned inspectors present the retailer 
with a Notice of Inspection and announce their presence. The inspectors 
determine compliance with other retail provisions in effect, including 
for example, premarket authorization requirements.
    As a result of concentrated efforts to identify retailers that 
violated the premarket authorization requirements, FDA has issued over 
600 warning letters and 140 civil money penalties (CMPs) to brick-and-
mortar and online retailers for selling unauthorized e-cigarette 
products.
    We continue to do this work with limited resources. Currently, the 
Family Smoking Prevention and Tobacco Control Act does not provide FDA 
the authority to collect user fees from e- cigarettes, despite the very 
significant resources that CTP expends to regulate these products.
    More resources are needed to increase inspections and enhanced 
enforcement actions.
    Question. This question is perhaps the most important of them all. 
During the April House hearings you described how the FDA ``needs to 
work with Congress to come up with a way to deal with this specific 
problem that cuts all of the red tape'' your agency has to go through. 
You testified that there are ``things that are bogging [the FDA] down'' 
and explained that ``by law, we have to treat offshore and internal 
people with the same rights in terms of their products'' and ``we're 
going to need a more efficient system.'' Now that you and your staff 
have had time to reflect since the hearing, please list for us the law 
changes or additional authorities you--or your partners at Customs--
need to efficiently and effectively keep these products out of the 
United States.
    Please do not hold back; we would like all ideas to be on the 
table.
    Answer. We are working on an approach to enhance our ability to 
stop unauthorized products from entering the country--both products 
that are properly declared and mis-declared. We are working both 
internally and with our Federal partners to enhance communication, 
engage in more joint operations, and prioritize work to address imports 
of illegal tobacco products. This includes streamlining processes, 
where possible, and cutting red tape to make it easier to stop products 
at the border.
    FDA is actively taking a very close look at existing statutes to 
identify opportunities for updates that could help address illegal e-
cigarettes, such as potentially extending authorities FDA has been 
granted related to other product categories we regulate, such as food 
and drugs. In general, we are looking to:

  --Better identify and hold accountable the responsible party in the 
        U.S;

  --Increase consequences for activities related to offering illegal 
        products for import; and

  --Strengthen our ability to refuse importation.

    In addition to efforts to examine our existing statutes and 
authorities, FDA is also continuing to enforce against illicit products 
in partnership with other agencies. Following the May 8th hearing, on 
June 10, 2024, FDA and the U.S. Department of Justice (DOJ) announced 
the creation of a Federal multi-agency task force to combat the illegal 
distribution and sale of e- cigarettes. Along with FDA and DOJ, the 
task force will bring together multiple law enforcement partners, 
including the Bureau of Alcohol, Tobacco, Firearms and Explosives; 
Customs and Border Protection; the U.S. Marshals Service (USMS); the 
U.S. Postal Inspection Service; and the Federal Trade Commission, to 
coordinate and streamline efforts to bring all available criminal and 
civil tools to bear against the illegal distribution and sale of e-
cigarettes responsible for nicotine addiction among American youth.
    The task force will focus on several topics, including 
investigating and prosecuting new criminal, civil, seizure, and 
forfeiture actions under the PACT Act; the Federal Food, Drug, and 
Cosmetic Act, as amended by the Family Smoking Prevention and Tobacco 
Control Act; and other authorities. Violations of these statutes can 
result in felony convictions and significant criminal fines and civil 
monetary penalties. They can also result in seizures of unauthorized 
products, which can help to make illegal e-cigarettes less accessible, 
including to young people. Through their participation in the task 
force, USMS will help FDA and DOJ effectuate seizures of unauthorized 
e-cigarettes within the United States.
    In order to clear shelves, it would require bringing thousands of 
individual seizure actions across the country against the products on 
the shelves today. We are working strategically to address the issue in 
three ways. First, we are developing a strategy to focus our actions 
across and up the supply chain at the importer, distributer, and 
manufacturer levels to have impact. Second, DOJ is FDA's counsel on 
these types of enforcement actions, and we work collaboratively to 
bring the best cases forward. Third, the task force can bring to bear 
the resources across the Federal Government to take a variety of 
compliance and enforcement actions.
    We will keep the Committee informed of this work and would be happy 
to work with the Committee on legislative efforts to further address 
this problem. Importantly, this is a whole supply chain issue and an 
``All Government'' approach is needed. With more resources and 
continued and collective engagement across agencies, FDA can increase 
compliance and enforcement actions both at the border and elsewhere in 
the supply chain.
                            unapproved drugs
    Question. I was pleased to see the FDA approve the first product 
specifically indicated in the United States for the treatment of 
neonatal seizures in term and preterm infants. It is my understanding 
that this product is the only approved product that does not contain 
preservatives, such as benzyl alcohol, ethyl alcohol or propylene 
glycol, all of which have been strictly prohibited by FDA guidance 
since 2022 for products intended for neonates. Yet, there are reports 
that numerous unapproved phenobarbital drugs containing these 
prohibited excipients are currently marketed for use in neonates with 
seizures, which presents a serious safety threat for vulnerable 
infants.
    Why has the FDA not utilized its enforcement authority to remove 
unapproved phenobarbital drugs from the market, and does the Agency 
plan to do so this year?
    Answer. Sezaby (phenobarbital sodium), an FDA-approved 
phenobarbital sodium injection product, is approved for the short-term 
treatment of neonatal seizures in term and pre-term infants.
    However, there are a number of unapproved phenobarbital sodium 
injection products currently on the market which, according to the 
unapproved labeling, are for the adult population as a sedative, 
hypnotic, preanesthetic, or long-term anticonvulsant and for use in 
pediatric patients as an anticonvulsant and sedative.
    In general, as with FDA's compliance activities across the Agency, 
we follow a risk-based enforcement approach that involves 
prioritization in light of the facts of a given circumstance. This 
includes prioritizing enforcement for drug products that pose the 
highest risk to public health. This risk-based enforcement approach 
best supports FDA's public health priorities. The Agency is currently 
reviewing a Citizen Petition regarding the specific marketing status of 
phenobarbital drugs and will respond to the Petition as soon as 
possible and post the response to the public petition docket.
    Question. The FDA Commissioner commented on the Agency's unapproved 
drug guidance at a July 2017 hearing before the House Judiciary 
subcommittee on Regulatory Reform, Commercial and Antitrust Law. The 
then-Commissioner explained that ``if you want these unapproved drugs 
to come through a regulatory process and develop the data to 
demonstrate safety and effectiveness and go through the manufacturing 
requirements, you have to provide an incentive"- the incentive being 
that ``if [manufacturers] go through that process and spend the money 
to do it, they're going to get a short period of exclusivity, and the 
FDA is going to make an attempt to clear the market of potential 
competitors.'' Why is the FDA not following through on its guidance to 
industry by granting a period of exclusivity to companies that invest 
in the regulatory process to prove safety and efficacy?
    Answer. New drugs that lack required FDA approval can pose 
significant risks to patients because they have not been evaluated by 
FDA for safety, effectiveness, or quality before they are marketed. FDA 
works diligently to protect patients by both encouraging FDA approval 
for unapproved new drugs, and removing illegally marketed unapproved 
new drugs from the U.S. market.
    First, the Agency encourages manufacturers of unapproved new drugs 
that are subject to approval to voluntarily come into compliance by 
obtaining approval for their drugs to be legally marketed in the U.S. 
Upon approval, certain drugs may qualify for exclusivity, such as 3-
year or 5-year exclusivities under section 505 of the Federal Food, 
Drug, and Cosmetic Act (FD&C Act) and 7-year orphan drug exclusivity 
under the Orphan Drug Act if they meet eligibility requirements. 
Determinations regarding periods of exclusivity are made upon approval 
and necessitate a review of the data and information submitted to FDA 
in the New Drug Application.
    Second, FDA may take regulatory action against firms that illegally 
market unapproved new drugs. FDA plans to issue guidance consistent 
with FDA's good guidance practices regarding its enforcement priorities 
for marketed unapproved new drugs. In general, as with FDA's compliance 
activities across the Agency, we follow a risk-based enforcement 
approach that involves prioritization in light of the facts of a given 
circumstance. This includes prioritizing enforcement for drug products 
that pose the highest risk to public health. This risk-based 
enforcement approach best supports FDA's public health priorities.
                        cell and gene therapies
    Question. Dr. Califf, I am concerned about the growing backlog and 
seeming delays for cell and gene therapies, including disproportionate 
and increasing clinical holds issued by the FDA for therapies under 
development. I am glad FDA has approved nine additional cell and gene 
therapies over the last year, including two sickle cell treatments and 
the first cancer cell therapy. However, these faced multiple clinical 
holds while under development and continue to see large numbers of 
holds on other breakthrough treatments, including for other forms of 
cancer and curative treatment for type 1 diabetes. I am concerned this 
leads to delayed access to life- changing therapies for serious 
conditions. Please provide more information about efforts at HHS to 
accelerate the advancement and access of cell and gene therapies.
    Answer. Clinical holds for Investigational New Drug applications 
(INDs) investigating cell and gene therapy (C>) products have 
markedly decreased in the past few years. Clinical holds for new INDs 
investigating C> products declined from 24% in 2021 to 9% in 2024 to 
date. Clinical holds for all active INDs investigating C> products 
declined from 6% in 2021 to 1% in 2024.
    The decline results from various factors, including outreach 
efforts to better inform sponsors of IND content necessary to assess 
risks and address safety issues, and internal Agency efforts to ensure 
timely review of potential clinical hold issues, which enables sponsors 
to provide missing/additional information when feasible. C> products 
are complex and often novel biologics manufactured with new 
technologies which can present regulatory challenges.
    FDA works with all sponsors to resolve issues and help speed 
development of new products, while maintaining high, scientifically 
based safety and efficacy standards. FDA remains committed to advancing 
the development of safe and effective C> products that have the 
potential to treat serious or life-threatening conditions, including 
various rare diseases, forms of cancer, and type 1 Diabetes.
                               sunscreen
    Question. No new sunscreen active ingredients have been approved in 
the United States since the 1990s. Since then, the rest of the world 
has moved one or two generations of sunscreen ahead of the United 
States. In 2014, Congress unanimously passed the Sunscreen Innovation 
Act (SIA) to address administrative burdens identified by FDA as 
barriers to timely evaluation. Officials suggested that new sunscreens 
would be made available in the United States within 6 months of SIA's 
enactment--nearly a decade ago.
    The SIA resulted in the establishment of timelines for 
consideration of both TEA and new sunscreen active ingredients, 
authorized the issuance of guidance for the criteria for a generally 
recognized as safe and effective (``GRASE'') determination for 
nonprescription sunscreen products, and required the agency to finalize 
the sunscreen monograph within 5 years of enactment, or November 26, 
2019. At the time, FDA indicated SIA would streamline the agency's 
review process without weakening safety requirements. Despite the SIA, 
FDA approved no new sunscreen active ingredients.
    Moreover, in anticipation of the November 2019 deadline, the FDA 
published a proposed order that would, if finalized, lead to the market 
withdrawal of two sunscreen active ingredients and removal of an 
additional 12 sunscreen active ingredients, which would leave only two 
UV filters as generally recognized as safe and effective, unless 
sunscreen manufacturers conducted additional scientific studies. The 
proposed order not only failed to achieve Congress' intended goal of 
approving new sunscreen active ingredients-it could result in the 
United States having only two sunscreen active ingredients available to 
consumers while the rest of the world continues to invest in new, broad 
spectrum sunscreen innovation. Skin cancer is the most prevalent cancer 
in the United States, and it is also the most preventable. Use of broad 
spectrum sunscreen is a proven and effective prevention tool against 
skin cancer. What is the FDA doing to ensure that Americans have access 
to the latest sunscreen technology?
    Answer. FDA is strongly committed to supporting the availability of 
new sunscreen active ingredients to the U.S. market. To that end, we 
have directed industry to helpful guidance documents FDA has published 
on the safety and effectiveness data needed to determine whether a 
nonprescription sunscreen active ingredient is generally recognized as 
safe and effective (GRASE)\40\ and on conducting Maximal Usage Trials 
(MUsT)\41\ needed to assess how much of a sunscreen ingredient is 
absorbed through the skin into the body. In addition, FDA conducted and 
published two pilot trials,\42 43\ evaluating the absorption of various 
sunscreen ingredients. Regarding the TEA active ingredients in 
particular, when the Agency reviewed eight applications to market new 
sunscreen ingredients several years ago, reviewers found that the 
applications lacked the necessary data to support finding the 
ingredients GRASE. Nine years ago, FDA described this informational gap 
and the data that would enable the Agency to complete its review to the 
public. To bring new active ingredients to market, manufacturers need 
to show they are safe and effective for their intended use in sunscreen 
products. If and when FDA receives the data needed to determine whether 
an active ingredient that may not be currently marketed as an active 
ingredient in sunscreen products in the U.S., whether or not it was 
previously the subject of a TEA proposed order, the Agency will review 
the data and make a determination in accordance with section 505G of 
the FDCA. Until then, there is no new data that has been provided to 
the Agency for it to review and to determine whether a new active 
ingredient intended for use in a sunscreen product is GRASE.
---------------------------------------------------------------------------
    \40\ https://www.fda.gov/media/94513/download
    \41\ https://www.fda.gov/regulatory-information/search-fda-
guidance-documents/maximal-usage-trials-topically- applied-active-
ingredients-being-considered-inclusion-over-counter
    \42\ https://jamanetwork.com/journals/jama/fullarticle/2733085
    \43\ https://jamanetwork.com/journals/jama/fullarticle/2759002
---------------------------------------------------------------------------
    FDA also notes that while having additional sunscreen choices may 
be desirable to consumers, new sunscreen active ingredients are not 
necessarily safer or more effective than the ones already available in 
the U.S. by virtue of being available in markets other than the U.S. 
Many currently marketed and widely available sunscreen products provide 
broad-spectrum protection with an SPF of 15 or more and are effective 
not only in helping to prevent sunburn, but also in in reducing the 
risk of skin cancer and early skin aging caused by the sun, when used 
as directed in their labeling.
    Question. The United States is falling behind the rest of the world 
in terms of access to sunscreen active ingredients. For instance, the 
United States has only 16 sunscreen active ingredients available--
potentially less upon the finalization of the sunscreen final 
administrative order. In contrast, the European Union has 34 approved 
sunscreen active ingredients. How can FDA's regulatory framework be 
streamlined for ingredients currently on the market globally?
    Answer. As noted above, important work has been done to streamline 
bringing new sunscreen ingredients to market--including through the 
CARES Act and other efforts. However, without data to review, FDA is 
unable to make use of the new, more streamlined processes set forth by 
the CARES Act. In order to accelerate its review of sunscreen 
ingredients, FDA needs data demonstrating that these ingredients are 
generally recognized as safe and effective for their intended use in 
sunscreen products. The requested data is consistent with the data 
routinely requested for drug products that are absorbed through the 
skin and into the body, and the need for this data was strongly 
supported by an independent expert advisory committee. That expert 
committee noted that the requested data was the minimum that would be 
needed to establish the safety of new sunscreen ingredients. FDA is 
committed to initiating our review of this data as soon as we receive 
it.
    Question. The FDA's final administrative order could significantly 
hinder Americans' access to the vast majority of sunscreens on the 
market today. How is FDA engaging with experts and public health groups 
to ensure it is utilizing appropriate sunscreen ingredient testing 
requirements?
    Answer. When considering appropriate testing for sunscreen 
products, FDA has updated the advice to sunscreen manufacturers to 
follow the most recent international standards for determining the 
safety of drug products, including sunscreens. For example, FDA worked 
with the International Conference on Harmonization (ICH) to update the 
guidance on carcinogenicity testing in 2022 to improve safety 
assessments and reduce animal testing, where it makes sense, without 
sacrificing the safety of consumers using these products.
    Wherever possible, FDA has also taken steps to offer industry 
tailored study recommendations that account for sunscreens' specific 
pharmacological properties and potentially reduce testing burdens. FDA 
is committed to working with industry and public health stakeholders to 
ensure that the sunscreens are safe and effective for daily, life-long 
use.
    Question. The FDA's public statements, after the proposed 
rulemaking issuance, suggested that existing sunscreens might not be 
safe. Although FDA subsequently modified its statements, this led to 
public confusion about the safety and efficacy of sunscreen. As it 
prepared to issue the final administrative order, is the FDA being 
careful to ensure its rhetoric does not lead to inaccurate conclusions 
that currently marketed sunscreens are unsafe?
    Answer. FDA continues to regularly emphasize the importance of 
sunscreen use in its public messaging. The Agency conducts several 
educational efforts to promote sunscreen use, raise awareness about the 
importance of sun protection, and ensure consumers have accurate 
information.
    Additionally, FDA produces a variety of educational materials, 
including online news, videos, and social media content, concerning 
sunscreen use and the importance of reapplication. Our educational and 
outreach efforts are designed to enhance public understanding of the 
risk associated with sun exposure and the role of sunscreen in reducing 
these risks, consistent with our mission to protect public health.
                          grain reconditioning
    Question. The FDA's reconditioning process for Distinct Low Quality 
grain is a critical part of the official grain inspection process for 
the export of U.S. bulk commodities. One area of concern I am hearing 
about is the timing of approval for reconditioning grain, particularly 
as the reconditioning process takes additional time to complete if an 
incident occurs at night or on the weekends and results in delays and 
increased costs for grain export facilities. Is the FDA reviewing the 
reconditioning process to identify ways to minimize delays in the 
process? If so, please describe in detail and when a new process will 
be implemented.
    Answer. FDA is aware of the concerns from industry regarding 
reconditioning proposals and is taking steps to address them. There is 
an existing Memorandum of Understanding (MOU 225-80- 2000)\44\ between 
USDA's Federal Grain Inspection Service (FGIS) and FDA to facilitate 
interagency coordination on the inspection and standardization of 
grain, rice, pulses, and other food products assigned to FGIS by the 
Secretary of Agriculture. There is a crosscutting FDA work group 
consisting of members from the Center for Food Safety and Applied 
Nutrition, Center for Veterinary Medicine, and Office of Regulatory 
Affairs working with FGIS to revise the FGIS DirectiveA\45\ on 
implementation of the MOU, to help expedite and enhance interagency 
coordination of the processes currently in place. An FDA Standard 
Operating Procedure (SOP) is also in development to detail procedures 
and processes for grain reconditioning, which will help streamline and 
standardize the process when FGIS notifies FDA of actionable lots. FDA 
and FGIS are continuing to work through the specifics and are targeting 
updates to the directive and SOP in FY 2025.
---------------------------------------------------------------------------
    \44\ https://www.fda.gov/about-fda/domestic-mous/mou-225-80-2000
    \45\ https://www.ams.usda.gov/sites/default/files/media/
FGIS9060_2.pdf
---------------------------------------------------------------------------

                          SUBCOMMITTEE RECESS

    Senator Heinrich. And with that, this hearing is adjourned.
    [Whereupon, at 11:22 a.m., Wednesday, May 8, the 
subcommittee was recessed, to reconvene subject to the call of 
the Chair.]





       LIST OF WITNESSES, COMMUNICATIONS, AND PREPARED STATEMENTS

                              ----------                              
                                                                   Page

Califf, Hon. Dr. Robert, M.D., Commissioner, Food and Drug 
  Administration:
    Prepared Statement of Dr. Robert M. Califf, M.D..............
      34.........................................................
    Statement of.................................................
      31.........................................................
    Summary Statement of Dr. Robert Califf.......................
      33.........................................................
Collins, Senator Susan M., U.S. Senator From Maine, Questions 
  Submitted by...................................................
  80.............................................................

Heinrich, Senator Martin, U.S. Senator From Mexico:
    Opening Statement of 



    Questions Submitted by.......................................
      57.........................................................
Hoeven, Senator John, U.S. Senator From North Dakota:
    Questions Submitted by.......................................
      69.........................................................
    Statement of 



Hyde-Smith, Senator Cindy, U.S. Senator From Mississippi, 
  Questions Submitted by.........................................
  84.............................................................

Manchin, Senator Joe, U.S. Senator From West Virginia, Questions 
  Submitted by...................................................
  64.............................................................
McConnell, Senator Mitch, U.S. Senator From Kentucky, Questions 
  Submitted by...................................................
  79.............................................................
Merkley, Senator Jeff, U.S. Senator From Oregon, Questions 
  Submitted by...................................................
  62.............................................................
Moran, Senator Jerry, U.S. Senator From Kansas, Questions 
  Submitted by...................................................
  81.............................................................

Nelson, Mr. Chris, Associate Budget Director, Accompanied By.....
  1..............................................................

Sinema, Senator Kyrsten, U.S. Senator From Arizona, Questions 
  Submitted by...................................................
  66.............................................................

Vilsack, Hon. Thomas J., Secretary, Department of Agriculture:
    Prepared Statement of........................................
      6..........................................................
    Statement of.................................................
      1..........................................................
    Summary Statement of.........................................
      4..........................................................





                             SUBJECT INDEX

                              ----------                              

                       DEPARTMENT OF AGRICULTURE

                                                                   Page

Additional Committee Questions...................................
  29.............................................................
Agricultural Trade...............................................
  16.............................................................
Apple Over Supply................................................
  24.............................................................
Bison Production.................................................
  13.............................................................
Broadband Access.................................................
  20.............................................................
CCC Utilization..................................................
  27.............................................................
Creating More, New, and Better Markets...........................
  9..............................................................
Crop Insurance...................................................
  15.............................................................
Emergency Forest Restoration Program.............................
  21.............................................................
H5N1.............................................................
  18.............................................................
Loss of Farmland.................................................
  15.............................................................
Meat Animal Research Center......................................
  19.............................................................
NASS Reports.....................................................
  23.............................................................
National AGRO-Bioscience Research Facility.......................
  17.............................................................
NRCS Contractor Fleet Insurance..................................
  24.............................................................
Ready to Use Therapuic Food......................................
  13.............................................................
Rebuilding:
    Rural America................................................
      7..........................................................
    USDA through Diversity, Equity, and Inclusion................
      12.........................................................
Rental Assistance................................................
  14.............................................................
Research and Innovation..........................................
  11.............................................................
Rural Development Staffing Challenges............................
  25.............................................................
Supporting Nutrition for the Nation..............................
  9..............................................................
Tackling the Climate Crisis......................................
  11.............................................................
Telework and Remote Work.........................................
  26.............................................................
Tribal Self Determination........................................
  26.............................................................
Western Drought Resilence........................................
  14.............................................................
WIC Program......................................................
  22.............................................................
Veterinary Medicine Loan Forgiveness Program.....................
  22.............................................................

                               __________

                 DEPARTMENT OF HEALTH & HUMAN SERVICES

                      Food and Drug Administration

Additional Subcommittee Questions................................
  57.............................................................
Advisory Committees..............................................
  64.............................................................
Animal Food Additives............................................
  82.............................................................
Artificial Intelligence..........................................
  62.............................................................
Biopharmaceutical Production.....................................
  72.............................................................
Biosimilars......................................................
  73.............................................................
CDER.............................................................
  80.............................................................
CDRH.............................................................
  80.............................................................
CBER.............................................................
  80.............................................................
Cell and Gene Therapies..........................................
  88.............................................................
Cessation Products...............................................
  57.............................................................
Cosmetics........................................................
  35.............................................................
Counterfeit Products.............................................
  72.............................................................
Dora Class Drugs.................................................
  61.............................................................
Draft Report and Plan on Best Practices for Guidance.............
  78.............................................................
Drug:
    Clinical Trials..............................................
      66.........................................................
    Supply Chains................................................
      65.........................................................
EERW Clinical Trials.............................................
  64.............................................................
Enterprise Transformation........................................
  36.............................................................
Ethylene Oxide...................................................
  66.............................................................
Facility Inspections.............................................
  71.............................................................
FDA Staffing and Telework Issues.................................
  70.............................................................
First Cycle Drug Approvals.......................................
  67.............................................................
Food:
    Regulation...................................................
      76.........................................................
    Traceability Rule 



Foreign:
    Manufacturer Tobacco Registration 



    Office Expansion.............................................
      36.........................................................
Grain Reconditioning 



Human Foods Program 



IT Stabilization and Modernization...............................
  36.............................................................
Laboratory Developed Tests.......................................
  69.............................................................
Medical Products.................................................
  35.............................................................
Modernizing Infrastructure, Buildings & Facilities...............
  37.............................................................
Neurology Drug Program...........................................
  80.............................................................
PDUFA Performance Goals..........................................
  73.............................................................
Proposed Uses of Additional NDP Dollars..........................
  81.............................................................
Real-World Data..................................................
  68.............................................................
Shortages and Supply Chain.......................................
  36.............................................................
Smoking Cessation................................................
  76.............................................................
Sodium...........................................................
  83.............................................................
Strengthening Biodefense.........................................
  37.............................................................
Sunscreen 



Tobacco 21.......................................................
  79.............................................................
    Products 



        Expos....................................................
          60.....................................................
    Regulation...................................................
      37.........................................................
Unapproved Drugs 




                                   -