FDA’s FY 2023 Budget Includes Several Proposals Significant to Food and Supplement Manufacturers

Hogan Lovells
Contact

Hogan Lovells

[co-author: Rachel Buff]

The U.S. Food and Drug Administration (FDA) recently released its Congressional Justification for the fiscal year (FY) 2023 budget. The agency is requesting $1.2 billion for its Foods Program to be allocated to initiatives such as reduction of heavy metals in foods for infants and young children, responding to foodborne outbreaks, food-contact substances, allergens, and expanding oversight of the dietary supplement market. The budget also contains a number of significant legislative proposals to Congress that, if enacted as proposed, could expand FDA authority in areas such as inspections, product testing, imports, contamination limits for toxic elements, dietary supplement oversight, and food shortages. Below we discuss some of the key budget requests and legislative proposals that would be significant to the food industry.

The U.S. Food and Drug Administration (FDA) recently released the Justification of Estimates for Appropriations Committees for the agency’s fiscal year (FY) 2023 budget, covering the October 1, 2022 through September 30, 2023 time period.1 The agency is requesting a total budget of $8.4 billion, of which $1.2 billion is being requested for the Foods Program, a $120 million increase from FY 2022 funds. The requested food funding is intended to support FDA’s public health agenda for foods, which includes additional investments in food safety modernization, improved health equity through nutrition, and enhanced inspectional capacity. Agency funding priorities highlighted in the FY 2023 budget include reducing heavy metals in foods for infants and young children, more closely monitoring the marketing of dietary supplements, more quickly responding to foodborne outbreaks, and addressing emerging chemical and toxicology issues such as food-contact substances and allergens.

The budget also includes a package of legislative proposals to Congress that seek to expand FDA authority in areas such as record requests and remote inspections, destruction of certain imported products, product testing and contamination limits for foods marketed for infants and young children, dietary supplement enforcement, and oversight of potential food shortages. The budget proposal is a request to Congress for funding and legislative authorities. Congress must authorize any funding through the Appropriations process and similarly enact any legislative changes to the Federal Food, Drug and Cosmetic Act (FFDCA).

Budget Requests

For the Foods Program, FDA would allocate some of the requested funding as follows. Many of these requests are broadly worded in the budget and additional details are not available currently.

  • Emerging Chemical and Toxicology Issues in Food. The FY 2023 budget proposal includes an increase of $19.5 million to address “emerging chemical and toxicology issues” in food. Among other things, the agency would use this funding to address allergens, Per- and Polyfluoroalkyl Substances (PFAS), and dietary supplements.

    • AllergensFDA would use a portion of allocated funding to “develop new allergen and gluten testing methods,” “hire staff to develop new compliance policies and coordinate industry compliance and increased enforcement activities,” and “expand scientific review capacity to assess the public health importance of allergens other than the major food allergens for which additional controls may be needed, including manufacturing controls and labeling.”

    • PFASFDA is requesting funds to hire additional experts to evaluate PFAS, communicate potential risks to the public, and support state and federal agencies in coordinated responses to PFAS.

    • Dietary Supplements FDA would use allocated funds to “expand efforts related to guidance development, technical assistance and training for industry and FDA investigators” focused on dietary supplements.

  • Healthy and Safe Food for All. The FY 2023 budget proposal includes a request for a $13.5 million increase in funding “to improve health equity through nutrition and reducing exposure to harmful toxins in food.” The agency also proposes to increase its regulatory capacity for dietary supplements, among other things.

    • Heavy Metals in FoodsA portion of requested funding would be used to address heavy metals in foods. For example, funds would be used to extend outreach beyond children and parents to “other potentially vulnerable populations” and produce education materials “to help consumers make healthy choices that reduce their exposure to toxic elements.”

    • Dietary SupplementsFDA would also increase its scientific and regulatory capacity related to dietary supplements by “funding necessary IT system development and new [full time employees] (FTE) to review additional product data, prioritize FDA investigations, and take compliance actions as needed to ensure that consumers who seek to augment their health with dietary supplements are protected from unsafe or otherwise unlawful products.”

  • Maternal and Infant Health and Nutrition. The FY 2023 budget proposal includes a requested $18 million increase to address maternal and infant health issues, which would cover staffing increases to undertake premarket review of infant formula submissions and evaluate the safety of foods for infants, young children, and pregnant and lactating women, among other things.

    • Closer to Zero Action Plan According to the budget proposal, FDA would use allocated resources to increase staffing of risk analysts, consumer safety officers, toxicologists, and other experts, which would allow the agency to expand certain research on neurodevelopment and “develop more accessible and affordable laboratory detection methods necessary for ensuring industry compliance with interim action levels.” FDA would also “develop technical assistance education materials for the industry, which outline requirements for managing and minimizing the presence of toxic elements in their products.”

    • Infant FormulaFDA would use appropriated funds to expand staffing dedicated to premarket review of new infant formulas in response to a reported increase in the infant formula submission rate and the increasing complexity of submissions. Additional capacity would also be used to address infant formula outbreak and recall situations.

  • Pathogen Detection Capabilities. Although not tied to a specific funding amount, the FY 2023 budget proposal discusses the use of appropriated funds to “maintain the critically important downward process in analytical return times” for pathogen detection capabilities.

  • New Era of Smarter Food Safety. The FY 2023 budget proposal includes a request for $20.2 million increase in funding to advance the goals of the New Era of Smarter Food Safety Blueprint. The agency plans to “leverage the latest science on foodborne outbreaks and apply new technologies to improve the efficiency and effectiveness of FDA’s oversight activities.”

Legislative Proposals

The FY 2023 budget also includes a number of legislative proposals. These proposals are requests to Congress to expand FDA authority in certain areas, which could be granted in potential future legislation by the amending of the FFDCA. The following are legislative proposals that would address key areas related to food. Beyond brief summaries in the budget request, the agency has provided little detail on how these legislative requests could be carried out by Congress.

  • Expansion of FDA Inspection Authority – FDA is proposing that Congress amend Section 704(a)(4) to cover all FDA-regulated entities, including facilities that manufacture human and animal foods, which would give FDA the authority to review records or other information (in electronic or paper form) in advance or in lieu of an inspection. It also proposes to give FDA “explicit authority to conduct remote regulatory assessments with establishments, which may include remote interactive evaluations such as livestreaming video of operations, teleconferences, and screen sharing, so FDA may interact virtually with an establishment and assess its compliance with applicable laws and regulations.” The budget proposal does not specify where this authority might appear in the FFDCA. According to FDA’s budget justification, the proposal is intended to allow FDA to interact virtually with an establishment and assess compliance with applicable laws and regulations prior to or instead of conducting an in-person inspection.

  • Product Testing Requirements for Foods Marketed for Consumption by Infants and Young Children – FDA is requesting Congress amend the FFDCA to give the agency authority to “(1) require industry to conduct toxic element testing of final products marketed for consumption by infants and young children and maintain records of these testing results for FDA inspection; and (2) provide FDA with new authority to remotely access records of these test results and to review these test results whenever necessary.” Currently, such testing is not mandatory.

  • Enhancing FDA’s Authority to Better Protect Infants and Young Children – FDA is requesting Congress amend the FFDCA to allow the agency to “establish binding contamination limits in foods, including foods consumed by infants and young children, through an administrative order process.” Such an update, the agency claims, would “improve the efficiency, timeliness, and predictability of issuing binding limits to reduce exposure to toxic elements . . . updating limits as new scientific information becomes available.”

  • Modernizing the Dietary Supplement Health and Education Act (DSHEA) – FDA is seeking to strengthen its implementation and enforcement of the DSHEA through amendments to the FFDCA that would “(1) require annual listing with FDA of individual dietary supplement products, including basic information about each unique product, and (2) clarify FDA’s authorities over products marketed as dietary supplements to facilitate enforcement against unlawfully marketed products.” According to the agency, these amendments “would allow FDA to know when new products are introduced, quickly identify dangerous or illegal products on the market, and take appropriate action to protect consumers when necessary.”

  • Supply Chain Shortage Reporting – FDA is requesting that Congress amend the FFDCA to give the agency authority to require manufacturers of infant formulas or essential medical foods for patients of certain inborn errors of metabolism to notify FDA of “anticipated significant interruptions” in the supply of such products. FDA is also requesting authority to require other firms to provide “shortage notification for other FDA-designated categories of food during a declared public health emergency.”

  • Authority to Require Destruction of Imported Products that Pose a Significant Public Health Risk – FDA is requesting Congress revise FFDCA § 801 to give the agency the authority to require an owner or consignee to destroy any FDA-regulated product that “has been refused and presents a significant public health concern, thus removing their option to export such product under current section 801(a).” FDA is proposing that the importer of record would be required to pay the destruction costs up front so that the agency does not have to file legal action to recoup these costs.

We will continue to monitor the progress of FDA’s FY 2023 budget request and legislative proposals.

References

1 FDA Seeks $8.4 Billion to Further Investments in Critical Public Health Modernization, Core Food and Medical Product Safety Programs (Mar. 28, 2022), https://www.fda.gov/news-events/press-announcements/fda-seeks-84-billion-further-investments-critical-public-health-modernization-core-food-and-medical; Food and Drug Administration, Fiscal Year 2023, Justification of Estimates for Appropriations Committees, https://www.fda.gov/media/157192/download.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Hogan Lovells | Attorney Advertising

Written by:

Hogan Lovells
Contact
more
less

Hogan Lovells on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide