Trump budget cuts could cost pharma industry billions in lost drug revenue, warns CBO
The Trump administration's 2026 budget proposal includes deep cuts for scientific research, including $18 billion in cuts from the NIH's funding, a 40% reduction.
In a letter responding to a request from congressional Democrats, CBO Director Phillip Swagel said the nonpartisan agency estimates a hypothetical 10% cut in the NIH's funding of preclinical research would reduce the number of drug candidates for phase 1 clinical trials over 30 years, starting with one fewer drug in the first decade, nine in the second, and 20 in the third.
"CBO estimated that a reduction in the NIH's funding of external preclinical research would ultimately decrease the number of new drugs coming to market by roughly 4.5 percent, or about 2 drugs per year," the letter said.
Preclinical research is the earliest stage of drug development, so the effects of funding cuts take longer to kick in.
CBO expects cuts to clinical trials, in which drugs are further along in development, to also reduce the number of new drugs and to take effect sooner, but did not provide an analysis.
In case you missed it: Will Trump's big tax bill help or hurt you? Why it could depend on your income
Congressional Democrats had also asked CBO to analyze the implications of reducing NIH funding by 35%-38% but the office said it had not determined whether historical data could reliably be used to do so.
CBO said it was updating its drug development model to address congressional interest in additional budget scenarios.
Democrats also asked the CBO to analyze the effects of a nine-month increase in U.S. Food and Drug Administration review times of new drug applications. The Trump administration has carried out mass layoffs at the agency, initially firing 3,500 employees, though some have since been rehired.
CBO found such a delay would lead to three fewer drugs entering the market in the first decade, and 10 fewer in both the second and third decades.
Delays in reviews would probably affect drug development in additional ways that CBO did not assess, the office said.
The Trump administration is proposing a $6.8-billion budget request for the FDA in 2026, representing a cut of around 5.5% from this year.
Reporting by Ahmed Aboulenein; Editing by Rod Nickel
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Congressional Candidate, 27, Forcibly Removed from Hearing and Arrested After Criticizing Texas Republicans: 'I'm Not Finished!'
Isaiah Martin, who spent a day in jail, later confirmed the charges were dropped and said he'd 'do it again for the people of Texas" A congressional candidate was forcibly removed from a hearing at the Texas State Capitol and arrested this week, after going over an apparent two-minute time limit to speak as he delivered a statement in opposition to Texas Republicans' redistricting efforts. Congressional District 18 candidate Isaiah Martin, 27, attended a hearing held by the Texas House Congressional Redistricting Committee on Thursday, July 24, when he offered his thoughts on the redistricting efforts in question, calling it 'illegal gerrymandering." According to Austin ABC affiliate KVUE, Gov. Greg Abbott added discussion of a proposed redrawing of congressional districts to the agenda following pressure from the Trump administration. Per The Hill, the redrawing of the state's maps could give the GOP an advantage in the 2026 midterms, as KVUE reported the state's constitution allows the maps to be redrawn at the discretion of both the governor and the Legislature — although it is rare to be done mid-decade. "Many of you that are Republicans, and I'm looking at you, you understand the game. You gotta get Trump's endorsement," Martin said at the beginning of his remarks, before his arrest. "That's the name of the game to be a Republican nowadays. And you know very clearly that Trump told every single one of you that he needs five seats." After he continued past an apparent allotted two-minute speaking time, Rep. Cody Vasut asked the sergeant-at-arms to remove Martin from the hearing. Footage from the scene, which was later shared by Martin's campaign on X, shows the candidate telling Republicans they have "no shame" as his microphone is removed from him. Martin then told the committee that "history might not remember you at all," as two men began to pull him out of the state capitol — with one man appearing to restrain Martin by lying on top of him. The Texas Department of Public Safety (DPS) later confirmed, per KVUE and CBS Austin, that Martin was charged with disrupting a meeting, resisting arrest and criminal trespassing. His arrest took place around 7 p.m. local time, and he was later booked in Travis County Jail. His charges were dropped, per CBS Austin and an update that was shared on Martin's social media. A DPS spokesperson told KVUE that the arrest took place after Martin "refused to obey requests from committee members and subsequent orders from DPS to leave a committee hearing at the Texas State Capitol." The DPS did not immediately respond to PEOPLE's request for confirmation on July 25. Per KVUE, Martin spent over 24 hours in jail. Martin's brother confirmed in a statement on X that "all charges" against him had been dropped, before Martin shared in a message of his own hours later that he was put in custody for a day because Republicans "were mad I had the AUDACITY to call them cowards to their faces." "They did this because I had the audacity to speak up, and you know what? I'm gonna continue to have that audacity," he said. "Because strongly worded letters won't get us out of this mess. It takes speaking truth to power no matter what the consequences are." Speaking with CBS Austin following his release, Martin reiterated that he would "do it again for the people of Texas." Read the original article on People


UPI
25 minutes ago
- UPI
House Democrats demand 'birthday book' from Epstein estate
1 of 4 | House Democrats have asked the estate of Jeffrey Epstein, pictured in jail before his 2019 death, to produce a book his associate Ghislaine Maxwell compiled for him in 2003 of letters from then-friends, including President Trump, to celebrate his 50th birthday. File Photo by New York State Division of Criminal Justice/EPA-EFE July 26 (UPI) -- House Democrats are demanding the release of a document held by Jeffrey Epstein's that allegedly contains a letter signed by President Donald Trump. The so-called "birthday book" is said to contain information about the convicted sex trafficker's personal relationships and was put together by his convicted former associate Ghislaine Maxwell in 2003. Maxwell herself was given a 20-year federal prison sentence in 2021 for helping Epstein procure young women, and spoke Friday with Deputy Attorney General Todd Blanche about the late financier's criminal activities. "Recent public reporting indicates that the Estate of Jeffrey Epstein is in possession of a document commonly referred to as 'the birthday book,' compiled by Ghislaine Maxwell in 2003 in celebration of Mr. Epstein's 50th birthday, which has clear relevance to this case," Rep, Ro Khanna, D-Calif., wrote in a letter addressed to three lawyers at separate New York City law firms. "Public reporting indicates that President Trump submitted a poem and drawing for the 'birthday book,' which contains messages and illustrations from wealthy and powerful friends and associates of Jeffrey Epstein." The letter is co-signed by Khanna, ranking Democrat on the House Oversight Committee, and Rep. Robert Garcia, D-Calif. "The Committee on Oversight and Government Reform has issued a subpoena to depose Ms. Maxwell, the book's alleged creator, and should be permitted to review its contents," the letter reads. In the opening sentence, lawmakers accuse Trump of continuing "desperate attempts to quell public interest in the release of files related to his longtime friend, convicted sex offender and child sex trafficker Jeffrey Epstein." Maxwell, who on Friday answered questions "honestly, truthfully" over several hours according to her lawyer, is set to appear in front of the House Oversight Committee on August 11. The 63-year-old was given partial immunity during the meeting where she was "asked about every single, every possible thing you could imagine. Everything," her lawyer David Oscar Markus later told reporters. Maxwell's appearance Friday is unrelated to the subpoena issued by the House Oversight Committee, which is conducting its own investigation. The letter penned by Khanna and Garcia asks for the book to be released by August 10 so members can review its contents prior to Maxwell's scheduled deposition. "The book is relevant for ongoing congressional oversight of the Department of Justice's handling of the Epstein investigation and prosecution, as well as the Trump Administration's decision to declassify and release only a handful of documents from its Epstein files while withholding others from the public," the letter reads. "Information gathered from this document may also inform the development of legislative reforms addressing sex trafficking networks, financial regulation, or other critical matters of public policy." Epstein died in 2019 while in custody in the Metropolitan Correctional Center in New York City. His death was ruled a suicide ahead of his scheduled trial on federal charges related to sex trafficking.


Washington Post
25 minutes ago
- Washington Post
Musk sought to stoke the Trump-Epstein scandal. Mission accomplished.
One person stands vindicated as the enduring fallout of the Jeffrey Epstein scandal haunts President Trump this month: his former adviser and friend Elon Musk. During the public implosion of his alliance with the president in early June, Musk claimed that Trump was refusing to release files related to the Epstein investigation because the president was named in the documents. White House press secretary Karoline Leavitt dismissed the claim as an 'unfortunate episode,' suggesting that Musk's outburst stemmed from frustration with the adverse effects Trump's tax legislation would have on his businesses.