In a major policy reversal, the U.S. Department of Health and Human Services (HHS) has canceled a $590 million agreement with Moderna to develop a vaccine aimed at combating dangerous flu viruses with the potential to spark future pandemics — including the highly pathogenic H5N1 bird flu. The decision comes amid growing concern over avian flu outbreaks in U.S. livestock and the federal government’s readiness to respond to emerging public health threats.
From Green Light to Red Light: A Sudden Shift in Strategy
The partnership between Moderna and the federal government began under the Biden administration in early 2024. The $590 million deal was designed to accelerate the development and clinical testing of mRNA-based vaccines targeting bird flu and other high-risk influenza strains. It was an extension of a previous $176 million award given to Moderna in 2023 to support late-stage development of a pre-pandemic H5N1 vaccine.
However, in February 2025, HHS under new leadership initiated a review of this contract and others like it. Now, just months later, the agency has opted to scrap the deal altogether. According to an HHS spokesperson, the decision followed a “comprehensive internal review” which concluded that the project failed to meet necessary safety and scientific standards for continued public investment.
Experts Sound the Alarm: “We’re Losing a Critical Tool”
Health experts have criticized the move, warning it may leave the U.S. vulnerable in the event of an avian influenza outbreak. Dr. Amesh Adalja, a senior scholar at the Johns Hopkins Center for Health Security, called the cancellation a “major misstep,” arguing that the vaccine in development represented one of the fastest and most adaptable tools the U.S. had to respond to a potential bird flu crisis.
“This decision runs completely counter to the aggressive, forward-thinking vaccine strategies we saw during Operation Warp Speed,” Adalja said, referencing the program that fast-tracked COVID-19 vaccines during the pandemic.
Over the past year, the H5N1 virus has spread through poultry farms and, more recently, cattle herds across the U.S. While human infections remain rare, at least 70 people — mostly farm workers — have contracted the virus. Experts say it’s only a matter of time before a more transmissible version emerges, potentially igniting a new public health emergency.
Vaccine Skepticism at the Top
The decision aligns with the more cautious — and at times controversial — stance of new Health Secretary Robert F. Kennedy Jr., a longtime critic of vaccines. Earlier this year, Kennedy drew criticism from both Democrats and Republicans after suggesting in a television interview that poultry farmers should let bird flu “run its course” to observe which chickens naturally survive — a proposal that was swiftly condemned by scientists and lawmakers as dangerous and unscientific.
Critics see the cancellation of Moderna’s contract as a reflection of this anti-vaccine sentiment now guiding some corners of federal health policy.
Moderna Looks for a Path Forward
Despite losing federal support, Moderna is not walking away from its bird flu vaccine efforts. In a statement, the company expressed disappointment with HHS’s decision but confirmed it is actively seeking alternative paths to continue development and manufacturing — likely through private partnerships or international collaborations.
The company also shared encouraging results from a mid-stage clinical trial, which showed promising safety data and a strong immune response to its H5 vaccine candidate. Moderna has been counting on new vaccine innovations like its bird flu shot and a COVID-flu combo vaccine to offset falling sales of its original COVID-19 shot.
Reassessing National Priorities
The move is part of a broader reevaluation at HHS of vaccine-related contracts authorized under the previous administration. Earlier this year, officials confirmed they were reassessing all agreements related to pandemic vaccine development to ensure current projects align with the department’s safety criteria and public health priorities.
Still, the timing has raised eyebrows. The World Health Organization and other global health agencies have warned that the risk of bird flu spreading more efficiently among humans is increasing. Experts stress that pandemic preparedness must include scalable, fast-acting vaccine platforms — something Moderna’s mRNA technology offers.
The Uncertain Future of mRNA in Public Health
The canceled deal is also a symbolic blow to mRNA vaccine technology, which gained worldwide attention during the COVID-19 pandemic. Moderna’s bird flu vaccine used the same mRNA platform that allowed for rapid development of coronavirus vaccines — a flexibility scientists hoped would make it ideal for future pandemics.
Now, with government support withdrawn, it’s unclear how quickly Moderna can push the vaccine through remaining clinical trials or build the necessary manufacturing infrastructure without public funding. HHS has not ruled out future collaboration with Moderna or other biotech companies, but has emphasized that any future support will require higher thresholds for scientific justification and safety assurance.
