by Kyle Turk
September 22, 2025
As Washington barrels toward another possible government shutdown, questions are swirling about how this political standoff could impact federal agencies, particularly the U.S. Food and Drug Administration (FDA).
FDA plays a critical role in safeguarding public health by overseeing food, drugs, dietary supplements, cosmetics and medical devices. But when Congress fails to pass appropriations bills on time, the agency’s ability to function becomes complicated.
What happens during a shutdown
When the government shuts down, most federal agencies operate under “lapse of appropriations” rules. This means that only employees deemed “essential” for protecting life and property remain on the job.
For FDA, this typically includes those monitoring food safety, high-risk drug oversight and emergency response activities. However, many routine functions, such as product reviews, compliance inspections and longer-term regulatory initiatives, are put on hold until funding is restored.
FDA’s budget structure
FDA’s funding is unique compared to other agencies. Roughly 45% of its budget comes from industry-paid user fees collected through programs such as the Prescription Drug User Fee Act (PDUFA) and the Medical Device User Fee Amendments (MDUFA). These fees allow the agency to continue certain operations even in the event of a shutdown.
However, appropriated funds from Congress still cover much of FDA’s work, including many food and dietary supplement programs. If a shutdown drags on, resources in these areas may be strained, leading to delayed inspections, slowed enforcement and reduced guidance activity.
What it means for industry and consumers
For companies regulated by FDA, the immediate impact of a shutdown often depends on how long it lasts. A short shutdown may cause minimal disruption. A prolonged one, however, could stall new product approvals, delay facility inspections, and weaken enforcement against bad actors.
For consumers, the effect may be less visible in the short term, but prolonged gaps could erode oversight and increase risks in the marketplace.
Bottom line
Whether or not this shutdown significantly disrupts FDA depends on its length and scope. User fees will keep some critical functions alive, but appropriated funding is essential for the agency’s broader mission.
The longer Congress delays, the more uncertainty looms over industry, public health and consumer confidence.
Kyle Turk is Vice President of Government Affairs with the Natural Products Association in Washington, D.C. You can reach him at kturk@npanational.org.
