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Updated November 22, 2021
Domestic Funding for COVID-19 Vaccines: An Overview
Federal efforts to develop, manufacture, purchase, and
distribute Coronavirus Disease 2019 (COVID-19) vaccines
have involved a numberofagencies. Many of these efforts
have thus far been funded by appropriations in COVID-19
relief acts, especially funding to the Department of Health
and Human Services (HHS) U.S. Public Health Service
(PHS) agencies and accounts in FY2020 and FY2021
supplemental appropriations andin the American Rescue
Plan Act (ARPA, P.L. 117-2) budget reconciliation measure
enacted in March 2021.
The following provides an overview of both (1)
appropriations and (2) allocations and obligations for
selected domestic COVID-19 vaccine related activities.
(With the exception of the mandatory funding providedby
ARPA, all funding amounts discussed below are classified
as discretionary.) The following is meant to informa
general understanding ofrelevant funding,but does not
capture every federal account that can be usedfor vaccine-
related activities. This product does not address financing
for vaccine administration (e.g., health ins urance coverage)
or globalvaccination funding (although some of the
funding for research and development [R&D], manufacture,
and purchase has flexibility for internationaluses).
Appropriations
The following summarizes two major categories of
COVID-19 vaccine-related appropriations. Many of the
below appropriations are available for broad purposes;
vaccine-related activities are onepotential use of funds. In
general, many of the HHS appropriations mentioned are
available for multiple years or until expended, and some of
the funding is transferrable between accounts by the HHS
Secretary.
Research and Development, Manufacture, and
Purchase
COVID-19 vaccine R&D, manufacture, and purchase have
been largely s upported by a collaboration among several
federal agencies, including the National Institutes of Health
(NIH) and the Biomedical Adv anced Research and
Development Authority (BARDA) of HHS, and DOD-
formerly Operation Warp Speed (OWS) and now the
Countermeasures Acceleration Group (CAG). Six vaccines
were chosen for coordinated federal support under OW S.
Some vaccine R&D has been supportedby NIH, BARDA,
and DOD separately fromthe OW S/CAGefforts.
NIH and DOD: FY2020 and FY2021 supplemental
appropriations to NIH and DOD for COVID-19-related
R&D can fund vaccine R&D. In the FY2020 and FY2021
supplemental appropriations acts, NIHreceived over $1.5
billion, available until September 30, 2024, broadly for
COVID-19 related research. The CARES Act (P.L. 116-
136) provided DOD with $415 million forCOVID-19
medical R&D in the DefenseHealth Programaccount with
some flexibility to reallocate other funds toward R&D.
BARDA and Other R&D, Manufacture, and Purchase:
In the FY2020 and FY2021 supplementalappropriations
acts, over $50billion in Public Health and Social Services
Emergency Fund (PHSSEF) funding, available until
September 30, 2024, is designated for a broad set of
medical countermeasures and surge capacity purposes,
including for the development, manufacture, andpurchase
of vaccines and related supplies. The PHSSEF account
funds BARDA, the main entity that has awarded large
funding agreements to pharmaceutical companies for
vaccine development, manufacture, and purchase. Not less
than $23.2 billion is set aside for BARDA in the FY2020
and FY2021 supplementalappropriations that canbe used
for vaccine-related efforts.
ARPA furtherprovides two relevant mandatory
appropriations: (1) in Section 2303, $6.05 billion, available
until expended, to HHS for R&D, manufacturing,
production, and purchase of vaccines and other medical
products-available for COVID-19, SARS-CoV-2 or its
v ariants, and any dis ease with potential for creating a
pandemic; and (2) in Section 3101, $10 billion, available
until September 30,2025, for activities under the Defense
Production Act (DPA) for the purchase, production and
distribution of medicalsupplies, including vaccines and
related supplies, among others. Both of these ARPA
appropriations have been assigned to HHS accounts-the
first to PHSSEF and the second to a new HHS DPA
account.
Domestic Vaccination Programs
The Centers for Disease Control and Prevention(CDC), in
collaboration with other agencies, has led efforts with state,
local, tribal, and territorial (SLTT) jurisdictions to plan and
implement a nationwide vaccination program. Agencies
with health care programs (e.g., the Veterans Health
Administration and Indian Health Service [IHS]) have
separately managed vaccination programs among
employees and covered populations. The Biden
Administration has also expanded therole of additional
agencies (e.g., the Federal Emergency Management Agency
[FEMA]) in vaccinationprograms.
CDC: Earlier in the pandemic, before vaccines were
available, CDC had received broad supplemental
appropriations for its pandemic-related activities in March
2020, and used some of this funding for vaccination
programgrants and planning. Since then, CDChas received
several appropriations specifically forvaccine-related
activities:
* Vaccination Programs and SLT Grants. For efforts
to plan, promote, distribute, administer, monitor, and
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