US Health Secretary freezes $460 million Vaxart COVID vaccine deal for review

The Department of Health and Human Services (HHS), led by Secretary Robert F. Kennedy Jr., has halted a multimillion-dollar contract initiated by the Biden administration to develop a new COVID-19 vaccine. The move affects Vaxart Inc., the American biotech company working on an oral vaccine.

Kennedy announced a 90-day stop-work order on the project, explaining that the Biden administration's oversight failures over the past four years necessitated a review of ongoing vaccine production agreements, Caliber.Az reports.

In a statement to Fox News Digital, he said, “While it is crucial that the Department support pandemic preparedness, four years of the Biden administration’s failed oversight have made it necessary to review agreements for vaccine production, including Vaxart’s."

Kennedy added that he would work with Vaxart and medical experts to ensure the development of "safe, effective, and fiscal-minded vaccine technology."

The stop-work order was issued on Friday, affecting a contract with Vaxart, which was scheduled to begin clinical trials with 10,000 participants on Monday. However, the trial is only paused, not terminated. Kennedy and health officials will review the study’s initial findings before determining future steps.

The vaccine project is part of the Biden administration's $4.7 billion Project NextGen initiative, launched in 2023 to expedite the development of new vaccines. Vaxart's vaccine, in particular, was funded through a contract with the Biomedical Advanced Research and Development Authority (BARDA), which falls under HHS’s Administration for Strategic Preparedness and Response.

As of now, BARDA has committed approximately $460 million to Vaxart, with $240 million already authorized for the initial phase of development. A recent amendment to the contract would have allowed Vaxart to request an additional $230 million for the upcoming clinical trials, but the stop-work order blocks any further invoices to BARDA until further review. However, Vaxart can still invoice HHS for medical monitoring of participants in the initial trials.

This decision comes less than two weeks after Kennedy's confirmation as the 26th HHS Secretary, shortly before President Donald Trump signed an executive order to establish the "Make America Healthy Again Commission," led by Kennedy. The commission will initially investigate chronic childhood diseases, including autism.

Kennedy, who ran as a Democrat in the 2024 presidential race before endorsing Trump, has faced criticism from some quarters for his past comments on vaccines, a stance he denies. During his confirmation hearings, he reiterated that he is not anti-vaccine.

The decision also comes amid ongoing political tensions over COVID-19 vaccine mandates, which were enacted under the Biden administration. Many private businesses and federal agencies required employees to get vaccinated, leading to protests and job losses among those who opposed the mandates. In response, Trump reinstated military members dismissed for vaccine refusal and signed orders halting federal funding for school vaccine mandates.

By Tamilla Hasanova