Everything is on the table as a House Appropriations subcommittee seeks to cut fiscal 2011 spending at the Department of Agriculture, FDA and related agencies by about $3 billion from FY '10 levels.

Details of the cuts will be worked out during the next week as each appropriations subcommittee puts together its portion of a continuing resolution to provide funds for the federal government to operate through Sept. 30, 2011, the end of the fiscal year, according to an aide to Rep. Jack Kingston, R-Ga., the incoming chairman of the Agriculture/FDA panel.

No decisions have been made about where or how steep the cuts will be at either FDA or at the Department of Agriculture, the aide noted. The allotment to the subcommittee would reduce overall spending at the agencies by 14% compared to the money they received for fiscal 2010.

Kingston is committed to FDA's mission of ensuring safe food and drugs for the American people, the aide said, so the question is how to achieve that given the current economic situation.

Kingston has not been as involved in FDA policy issues to the extent of his predecessor, Rep. Rosa DeLauro, D-Conn., who has pushed to divide the agency into separate entities – one to oversee food safety and the other medical products.

When he has stepped into that arena, Kingston has demonstrated his fiscally conservative credentials.

In the last Congress, the Georgia Republican co-sponsored the follow-on biologics bill introduced by Rep. Henry Waxman, D-Calif., that would have cut drug spending more quickly by enabling biosimilars to enter the market sooner than under the bill that ultimately was incorporated into health care reform legislation.

He also has supported allowing the importation of lower cost drugs made at U.S.-approved overseas facilities.

Regardless of what FDA's budget ends up being this year, the agency already appears to be preparing for an era of austerity (Also see "With Federal Dollars Scarce, FDA May Fundraise For Regulatory Science Initiative" - Pink Sheet, 7 February, 2011.).

The Alliance for a Stronger FDA, which advocates for increased appropriations, noted in Feb. 4 statement that, because almost half of the year will be over by the time the current continuing resolution expires on March 4, the impact of the proposed cuts could be greater than 14% in order to achieve the savings targets.

"For example, a 14% decrease reduces a $100 million program to $86 million. However, if the program spent $50 million in the first half of the year, then there will only be $36 million to spend in the second half of the year. This would constitute a 28% cut in the amount the agency would have available to spend in the second half of the year," the alliance stated.

The Alliance noted, however, that "when agencies are operating under a partial year continuing resolution, they usually do not spend half of the amount in the first 6 months of the fiscal year. This is likely to be true of all programs in the Agriculture Appropriations subcommittee’s jurisdiction, including FDA. To some degree, this would lessen the impact of a full year’s cuts being spread across six months."

Two New Faces Atop The Appropriations Subcommittee

As Kingston assumes the reins of the Agriculture/FDA subcommittee, he finds himself working with a new partner across the aisle.

While DeLauro remains on the panel, she has opted to become ranking member of the Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies. There she will be involved in overseeing NIH funding of biomedical research and other Department of Health and Human Services programs.

Replacing DeLauro as top Democrat on the Agriculture/FDA subcommittee is Sam Farr, who represents an agricultural district in California and has been vocal during panel hearings on the need to ensure food safety.

In the area of health care, Farr has pushed for health insurance coverage of routine HIV screening and radiation therapy for breast cancer patients, as well as adequate reimbursement of physicians treating Medicare patients.

After The House, A Battle

In the Senate, the Appropriations Committee is waiting to see the funding levels approved by the full House (a floor vote is scheduled for the week of Feb. 14) before moving forward on an FY 2011 measure.

Majority Leader Harry Reid, D-Nevada, has panned the House Republicans' proposed cuts, setting the stage for a contentious debate between the two houses of Congress as they attempt to complete action before the current continuing resolution expires March 4. The results could be another short-term funding measure while the two sides seek a compromise.

Even as spending figures for the remainder of fiscal 2011 remain in doubt, President Obama is expected to send his budget proposal for fiscal 2012 to Capitol Hill on Valentine's Day.

By Cathy Dombrowski

FDA Faces Potential 14% Budget Cut As Rep. Kingston Develops His First Spending Plan

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