WASHINGTON — The White House has decided to divert more than $10B from its planned spending on testing and personal protection equipment in order to purchase new vaccines and treatment it expects to need this fall.
According to a White House official, the redirected funds will allow the U.S. start contract negotiations to order new vaccines for fall. This includes next-generation vaccines that companies are currently developing.
The official stated that even with the redirected funds the U.S. will not have enough money to buy vaccines for all Americans who want them.
In March, the White House asked Congress for $22.5 billion to fund Covid. This was part of a larger spending bill. After House members demanded transparency on how money had been spent, the Covid money was withdrawn.
The Democrats and Republicans have been locked in a battle for months over additional Covid money and terms. According to a White House official, the administration is being forced into “unacceptable compromises” and cutting corners.
The official stated that the Administration must act because Congress won’t. “These trade-offs that we are forced to make due to Congress will have serious implications on the development and production of next-generation vaccines, diagnostics and therapeutics, as well as domestic vaccine production capacities, stockpiling PPE, and procurement of testing supplies and tests for federally qualified community health centers.
The funding announcement was first reported by the Associated Press.
The administration plans to limit the purchase of at home tests as part of its planned cuts to existing programs. This could lead to manufacturers having to reduce their production when there is a decrease in consumer demand or periods of low transmission.
The official stated that “this loss in domestic manufacturing capability for COVID-19 test will also make us dependent on future surges of tests from foreign countries.”
The U.S. will also stop plans to increase domestic vaccine production capacity and invest in research into new Covid treatments, vaccines and tests.
It will also have “limited capability” to support the U.S. stockpiles of personal protective equipment, ventilators, and other supplies required to respond to another surge.
Due to insufficient funding, the government has already cancelled plans to purchase additional monoclonal antibodies treatments. It has also been closing down a program that reimbursed doctors and other medical providers for providing care for Covid-infected people.
White House officials warned for weeks that contract negotiations would be necessary with Moderna and Pfizer this month to secure contracts for the new vaccine they are creating.
