Trump Administration Reassesses Moderna’s $590M Bird Flu Vaccine Funding Amid Rising Outbreak

In January 2025, the U.S. government awarded a significant $590 million contract to Moderna to support the development of its bird flu vaccine, focusing on combatting the increasingly widespread H5N1 avian influenza. However, amidst growing concerns over the effectiveness of government-funded vaccine projects and the rising cost of pandemic preparedness, U.S. health officials are reevaluating this contract. The review, which comes after Moderna’s previous success with its mRNA-based COVID-19 vaccine, is part of a broader effort to assess the value and necessity of funding messenger RNA (mRNA) technology for future pandemics, particularly bird flu.

The coronavirus pandemic highlighted the potential of mRNA technology, with Moderna’s COVID-19 vaccine playing a pivotal role in global vaccination efforts. Given this success, the U.S. government turned to Moderna in early 2024 to develop a similar vaccine for the H5N1 strain of avian influenza, which has led to widespread poultry deaths and sporadic infections in humans. The initial $590 million funding was earmarked to accelerate the development of this vaccine, and Moderna has already made significant progress. However, amidst the ongoing bird flu outbreak and questions about the management of the mRNA vaccine program, the Trump administration has called for a closer examination of spending and future vaccine production agreements.

U.S. Government’s Pandemic Preparedness Efforts

The U.S. government has long invested in vaccine development as part of its efforts to prepare for potential pandemics, recognizing the threat posed by diseases like avian influenza. The H5N1 strain of bird flu, which has been circulating in poultry populations globally, is particularly concerning due to its potential to evolve into a more transmissible form that could pose a risk to humans. While human cases have remained relatively rare, with fewer than 70 reported infections in the U.S. since the start of 2024, including one fatality, the risk of the virus mutating to become more easily transmissible between humans remains a persistent concern.

Since early 2022, the U.S. has been grappling with one of the most severe bird flu outbreaks in history, with over 166 million chickens killed due to the virus. This large-scale poultry loss has triggered significant concerns about the economic impact on the U.S. agriculture industry, including both the poultry and dairy sectors. The Centers for Disease Control and Prevention (CDC) and the Department of Agriculture (USDA) have been monitoring the outbreak closely, implementing preventive measures and urging vigilance. Despite these efforts, the virus continues to spread across the country, leading to an uptick in both animal and human infections.

The Role of Moderna in Avian Influenza Vaccine Development

Moderna, the biotechnology company renowned for its COVID-19 vaccine, was quick to pivot its mRNA technology to address the avian flu crisis. The company received a $176 million contract from the U.S. Department of Health and Human Services (HHS) in 2024 to begin pre-pandemic vaccine development. In early 2025, Moderna expanded its efforts with an additional $590 million from the U.S. government to advance clinical trials for its H5N1 mRNA vaccine, branded as mRNA-1018.

The investment was seen as a proactive step toward addressing potential future outbreaks, as avian influenza viruses have the ability to jump from animals to humans, with the possibility of causing a pandemic. Moderna’s mRNA platform, which was first used to develop its COVID-19 vaccine, has been touted as a rapid and adaptable solution for tackling emerging infectious diseases, including H5N1.

With Moderna’s expertise and prior success in rapidly producing vaccines, the U.S. government had high hopes that the company could help mitigate the spread of avian influenza. Moderna’s mRNA-1018 vaccine was entering late-stage trials after positive preliminary results from earlier clinical studies. The company planned to present these findings at an upcoming medical conference, a crucial step toward determining the vaccine’s efficacy and safety before it could be rolled out on a larger scale.

Reevaluation of the Funding and mRNA Vaccine Strategy

Despite these promising developments, the Trump administration, alongside health officials, has raised concerns about the oversight of vaccine funding and the potential waste of taxpayer money. A significant focus of the review is on the efficacy of messenger RNA technology in combatting diseases beyond COVID-19. While mRNA vaccines have shown immense potential in tackling the coronavirus, there are still questions about their effectiveness against other viruses, including avian influenza.

The U.S. Department of Health and Human Services (HHS) stated that a thorough review of agreements related to vaccine production was necessary, given the challenges experienced during the previous administration’s pandemic response efforts. There are concerns that previous oversight failures may have led to inefficiencies, prompting the current administration to scrutinize the terms of its agreements with vaccine manufacturers like Moderna. Some critics argue that the U.S. government should explore a wider range of vaccine candidates and technologies to ensure a balanced approach to pandemic preparedness.

Financial and Public Health Impact of the Bird Flu Outbreak

The bird flu outbreak in the U.S. has resulted in significant economic losses, particularly in the poultry industry. According to USDA data, nearly 166 million chickens have been lost since the onset of the outbreak in 2022, with the U.S. government dedicating resources to containing the spread of the virus in farms and livestock facilities. In addition to the poultry loss, the virus has infected several dairy herds, further straining agricultural production. The U.S. government has committed to investing up to $1 billion in efforts to combat the spread of H5N1, focusing on improving biosecurity measures and supporting vaccine development.

Despite these ongoing efforts, the Centers for Disease Control and Prevention (CDC) has downplayed the immediate risk to the general public. The agency noted that, while human infections have occurred, the virus has not yet shown signs of widespread human-to-human transmission. Nonetheless, experts are cautious, warning that the virus’ ability to evolve in mammals—especially as it spreads among wildlife and domestic animals—could increase the likelihood of human-to-human transmission in the future. The potential for the H5N1 virus to mutate and become more easily transmissible raises alarms within the scientific community, particularly as it remains a significant threat to public health.

Moderna’s Challenges and Future Prospects

While Moderna remains at the forefront of the mRNA vaccine race, the company is facing several challenges in its development of the bird flu vaccine. The efficacy of mRNA vaccines against avian influenza is still largely unproven, and experts remain uncertain about the best approach to dealing with the virus. Despite the initial success of Moderna’s COVID-19 vaccine, the company must still demonstrate that its mRNA technology can be effectively applied to different strains of influenza.

Additionally, the scrutiny surrounding the funding of Moderna’s vaccine development comes at a time when public trust in government spending and vaccine programs is being tested. Vaccine hesitancy, fueled by concerns over vaccine safety and the speed of development, remains a significant hurdle to overcome. The government’s role in supporting vaccine development is also under scrutiny, with critics questioning whether sufficient oversight is in place to ensure that taxpayer money is spent effectively and that vaccines are developed in a timely manner.

The Path Forward: Balancing Pandemic Preparedness with Public Confidence

As the U.S. government reexamines its funding agreements with Moderna and other vaccine developers, it must strike a delicate balance between advancing public health preparedness and maintaining public confidence. The success of mRNA vaccines in combating COVID-19 has set a high standard for future vaccine development, but it also raises expectations that other vaccines, including those for avian influenza, must meet similar standards of safety and efficacy.

The potential for the H5N1 avian influenza virus to evolve and spread to humans underscores the urgency of continued investment in vaccine research and development. While Moderna’s mRNA-1018 vaccine shows promise, its effectiveness will ultimately depend on the results of ongoing clinical trials and the ability of the vaccine to protect against potential mutations of the virus.

The ongoing bird flu outbreak in the U.S. serves as a stark reminder of the vulnerabilities of the global agricultural system and the continued need for vigilance in addressing emerging infectious diseases. While the immediate risk to the public remains low, health officials must remain proactive in preparing for the possibility of a future pandemic.

In conclusion, the Trump administration’s review of Moderna’s $590 million bird flu vaccine contract reflects the complex nature of pandemic preparedness and vaccine development. As Moderna continues its work on the mRNA-1018 vaccine, the U.S. government must carefully weigh the potential benefits of mRNA technology against the costs and challenges of ensuring that vaccines are safe, effective, and ready for widespread distribution in the event of an outbreak. The outcome of this review will likely shape the future of pandemic response efforts and vaccine development strategies in the years to come.