The Trump administration's sweeping changes to federal health and social service agencies have led to significant disruptions. Thousands of employees have been laid off, programs have been shuttered, and operational support has been eliminated, creating chaos across agencies like the National Institutes of Health (NIH), Food and Drug Administration (FDA), and Social Security Administration (SSA).
At the NIH, scientists are reportedly bartering for lab supplies due to procurement delays, while at the FDA, staff fear that drug reviews and inspections will fall behind. The SSA, already at a 50-year staffing low, faces further reductions, with plans to cut an additional 7,000 employees. This includes a potential 50% reduction in the Office of the Chief Investment Officer (OCIO), which manages sensitive data and benefit claims processing. These changes have led to longer lines, website crashes, and delays in benefit access for millions of Americans. The administration has also introduced an April 14 requirement for online applications for certain benefits, further straining the system.
The biotech sector has also been affected, with the S&P Biotech ETF hitting an 18-month low. Investors cite uncertainty over the administration's health policies, which have stalled funding approvals and reduced confidence in the sector. Democratic senators, including Elizabeth Warren, Ron Wyden, and Kirsten Gillibrand, have expressed concerns over the 'dangerous' impact of these cuts and are demanding a halt to the workforce reductions. Additionally, NOAA's Montlake lab in Seattle has faced hazardous waste disposal issues and janitorial problems, delaying critical research.
Trump administration cuts across federal health agencies have sent shivers through a biotech industry already struggling through a prolonged downturn, increasing concerns they will have a harder time getting products approved, investors, company… https://t.co/Pp3gimEx9c https://t.co/Yf7gtZfpWa