FY 2027 President’s Budget Request: ASPR Highlights

On August 13, 2025, President Trump issued Executive Order 14336, Ensuring American Pharmaceutical Supply Chain Resilience by Filling the Strategic Active Pharmaceutical Ingredients Reserve. It directs ASPR to identify the most critical drugs for national health security, secure supplies of their key ingredients, and strengthen domestic medical manufacturing. The goal is clear: reduce dependence on foreign suppliers and accelerate the return of high-quality manufacturing jobs to the United States.

This funding allows ASPR’s Industrial Base Management and Supply Chain (ASPR/IBMSC) to onshore, reshore, and strengthen resilient, reliable U.S.-based pharmaceutical supply chains. It ensures essential medicines will be available when and where they are needed, in the required quantities and dosage forms.

IBMSC will use available funds to establish additional vendor managed inventory (VMI) capacities for the majority of prioritized active pharmaceutical ingredients (APIs). This activity includes the procurement, storage, management, conversion, and distribution of qualified APIs from FDA-inspected suppliers with Drug Master Files on record. The funding will also be used to demonstrate analytical chemistry capabilities for acceptance and retesting of APIs. In parallel, IBMSC will support efforts to store, rotate, and replenish APIs using current good manufacturing practices (cGMP).

This funding increase also supports related priorities, such as domestic manufacturing of antibiotics, intravenous (IV) solutions, and medical devices to improve production efficiency, scalability, and resilience of domestic supply chains. These resources can help make drug manufacturing faster, more flexible, and able to happen in multiple locations. They also support meeting quality and safety standards (cGMP) and strengthen the supply chain—for example, by reducing risks to U.S.-based production.

If enacted, President Trump’s budget would change funding availability from two-year to no-year funds, giving ASPR increased flexibility to modify contracts and reprioritize funding in the future.

The Program Management Office (PMO) is a newly proposed budget line that will fund federal salaries and benefits, as well as support central costs associated with ASPR programs. Not included in this line are salaries, benefits, and central costs for the National Disaster Medical System and Health Care Readiness and Recovery programs; those funding lines retain those costs.

Also included is an increase of $10 million for National Special Security Events (NSSEs), bringing the total funding to $15 million. ASPR provides public health and medical support during NSSEs. From celebrations like Independence Day on the National Mall to solemn observances such as the Peace Officers Memorial, ASPR works behind the scenes to ensure a safe and healthy event. The list of non-Stafford Act response activities is growing, and these funds will be used to provide public health and medical support at America’s 250th celebration and other events that are on the horizon in 2027.

The National Disaster Medical System (NDMS) is the nation’s medical surge capability, a network of deployable teams and partner hospitals that supports states after natural and man-made disasters and provides a pathway to definitive care when capacity is exhausted. NDMS enables ASPR to rapidly and reliably deploy trained medical professionals and resources at scale during an emergency.

NDMS has been level funded for the last decade, and this year’s budget proposes a decrease. At this funding level, NDMS will examine internal capabilities and reduce some of its national footprint.

Although the President’s Budget cuts funding for BARDA’s line item by $395.6 million, an estimated $105 million is being reallocated to PMO for BARDA federal salaries and expenses.

Under the President’s Budget, BARDA will continue to advance development of medical countermeasures to address the material threats identified by the U.S. Department of Homeland Security (DHS) and other health security threats. BARDA’s targeted key outputs and outcomes remain consistent with the targeted outcomes for 2026.

The President’s Budget continues to support procurement of the highest priority medical countermeasures against all material threats identified by DHS and prioritized in the Public Health Emergency Medical Countermeasures Enterprise Strategy and Implementation Plan.

The budget consolidates SNS federal salaries and expenses into the proposed PMO while maintaining overall funding levels aligned to FY 2026 priorities. Funding is focused on sustainment activities critical for protecting Americans across threat portfolios.

Sustaining National Special Pathogen Preparedness

The budget largely sustains funding for the National Special Pathogen System (NSPS) and NETEC to maintain preparedness for high-consequence infectious diseases.

Eliminating and reducing programs

The budget eliminates the Hospital Preparedness Program, Regional Disaster Health Response System, and several other readiness programs including TRACIE. Funding is reprioritized to other activities.

The budget eliminates funding for the Medical Reserve Corps (MRC), which includes more than 260,000 volunteers across about 717 units. The MRC recruits, trains, and activates volunteers to support community health and safety needs during emergencies.