In a major policy change, the Trump administration cancelled a $766 million contract with Moderna to develop an mRNA-based bird flu vaccine. The action comes as the H5N1 virus remains active among US poultry and dairy cattle, with 70 cases and one fatality in humans reported. The cancellation has raised concerns about the country’s ability to handle possible pandemic influenza pandemics.
Contract Termination Details
Citing concerns regarding the safety and testing of mRNA technology, the US Department of Health and Human Services (HHS), led by Secretary Robert F. Kennedy Jr., announced that the agreement would be canceled. Originally, the contract—established during the Biden administration— and was intended to support Moderna in developing vaccines.
Specifically, it targeted future pandemic flu viruses, including H5N1 and aimed to advance clinical trials for multiple subtypes. Ultimately, the goal was to strengthen national pandemic preparedness.
Moderna had published promising interim results from phase 1 clinical trials, showing a strong and long-lasting immune response to its H5N1 vaccine candidate. Even with these results, the HHS ruling stops federal funding for the project, leaving the vaccine’s future in doubt.
Impact on Moderna and Public Health
The cancellation is a major blow to Moderna, which has been counting on sales from new mRNA vaccines to make up for dwindling demand for its COVID-19 vaccine. The company reported a loss of $2.52 per share on $86 million in product sales in the first quarter, missing estimates.
Experts in public health are worried that the cancellation of the contract would hamper the country’s capacity to deal adequately with a possible bird flu pandemic. So far, the H5N1 virus has already resulted in the slaughter of more than 173 million birds.
It has infected over 1,000 dairy herds across 17 states. As a result, poultry businesses are facing severe losses and public health concerns are continuosly growing. Experts are calling for stronger surveillance and vaccine preparedness.
Broader Implications
The move is a sign of a wider skepticism within the Trump administration toward mRNA vaccine technology. The self-described vaccine skeptic, Secretary Kennedy, has already revoked the COVID-19 vaccine recommendations for children and pregnant women.
The H5N1 virus remains a danger, and the termination of the Moderna contract nevertheless highlights ongoing difficulties. But it also raises concerns about public safety, because ending such deals can stall scientific progress. So, questions arise about whether the Trump administration is prioritizing preparedness. Furthermore, the decision may impact vaccine development timelines, while creating uncertainty among health experts.
As a result, public confidence could erode, especially if future outbreaks intensify. The decision has generated controversy on the part of mRNA technology in future pandemic preparedness and the country’s capacity to manage newly discovered infectious illnesses.