Maintaining America’s Leadership in Biomedical Innovation: FDA’s Role in Advancing U.S. Drug Development

Health Care Costs and Drug PricingHouse Energy and Commerce Subcommittee on Health · 2026-07-15 · 119th Congress
The House Energy and Commerce Subcommittee on Health held this hearing to examine how FDA policy, clinical-trial modernization, and the upcoming FDA user-fee reauthorization can help the United States maintain its lead in biomedical innovation as China's share of early-stage clinical trials grows rapidly. Begins at 0:02:36
Transcript
Highlights

Title

FDA reforms and China competition in early-stage drug development

Purpose

The House Energy and Commerce Subcommittee on Health held this hearing to examine how FDA policy, clinical-trial modernization, and the upcoming FDA user-fee reauthorization can help the United States maintain its lead in biomedical innovation as China's share of early-stage clinical trials grows rapidly. Witnesses from IQVIA, the Reagan-Udall Foundation, Breakthrough T1D, Harvard/Brigham and Women's Hospital, and the Council on Foreign Relations testified on Operation Trailblazer, IND package reform, clinical-trial site capacity, and the national-security risks of ceding drug-development leadership to China. Democrats used the hearing to press the FDA and Trump administration on staffing cuts, an OMB proposal to politicize federal grantmaking, and NIH funding reductions. Begins at0:02:36

Who spoke

Chairman Morgan Griffith (R-VA), Subcommittee Chair0:02:36: Opened by describing Operation Trailblazer, a June HHS-wide initiative to modernize clinical trial requirements and reduce FDA regulatory burden0:03:26; later questioned witnesses on risk-based review standards, community health center trial access, and telemedicine0:49:220:50:49.

Rep. Diana DeGette (D-CO), Subcommittee Ranking Member0:07:20: Said DOGE eliminated 3,500 FDA jobs and that former Commissioner "Mike Carey" made policy through press releases and podcasts, bypassing formal guidance processes0:08:110:10:02; entered her February letter and FDA's response into the record0:11:12; later pressed Dr. Kowalski on the OMB grant rule's threat to peer review and the TEDDY diabetes study0:54:320:57:19.

Rep. Brett Guthrie (R-KY), Full Committee Chairman0:12:28: Said other countries, particularly China, are investing heavily to attract biotech and clinical trials0:13:27; later asked Winkler about psychedelic-trial design and FDA's new guidance0:59:21.

Rep. Frank Pallone (D-NJ), Full Committee Ranking Member0:14:58: Cited a CBO estimate that a 10% NIH budget cut would mean 20 fewer approved drugs over ten years0:16:34; said DOGE cuts and unclear FDA user-fee spending were under GAO review0:17:03.

Dr. Cynthia Verst, IQVIA (referred to in captions as "Doctor First")0:21:29: Said China's phase-one trial share reached 35% versus 27% for the US at end of 20250:22:42, and that IND package preparation, not FDA review time, drives sponsors to start trials outside the US0:24:16.

Susan Winkler, Reagan-Udall Foundation for the FDA0:27:21: Recommended risk-based, phase-appropriate IND requirements and clearer FDA language, e.g. replacing "clinical hold" with "notice of additional information required"0:29:250:29:48; proposed a dedicated network of Phase 1-capable sites and hub-and-spoke models0:30:420:31:09.

Dr. Aaron Kowalski, CEO, Breakthrough T1D0:32:36: Said Breakthrough T1D has invested over $2.5 billion in T1D research0:34:47; testified FDA regulates deceased-donor islet cells as drugs rather than organs, blocking transplantation research0:35:59; said undiagnosed patients face a roughly 50% risk of DKA at diagnosis versus under 4% when screened1:22:48.

Dr. Thomas Hwang, Brigham and Women's Hospital/Harvard Medical School0:37:41: Said the share of cancer drug studies with any Chinese trial site nearly tripled in seven years, and first-in-human oncology studies with a Chinese site doubled0:39:34; recommended statutory backing for FDA's transparency initiative on halted trials and complete response letters0:41:22.

Thomas Bollyky, Council on Foreign Relations0:42:14: Said China's first-in-human trials run 3–5 times faster and cost one-third to half as much as the US IND process0:43:34; said China's share of global clinical trial starts rose from 1% in 2009 to 30% in 20240:44:24; noted only 20 FDA GCP inspections (under 1%) occurred in China versus 93% in the US0:45:54.

Rep. Raul Ruiz (D-CA)1:14:37: Described his bipartisan Clinical Trial Modernization Act, H.R. 3521, with Rep. Pfluger, to reduce economic and geographic barriers to trial participation1:16:29.

Rep. Dave Joyce (R-OH)1:20:22: Discussed the bipartisan Screen for Type One Diabetes Act with Rep. Kim Schrier, directing CDC to develop screening resources1:22:00.

Rep. Robin Kelly (D-IL)1:25:13: Pressed on FDA's diversity action plan guidance for clinical trials, noting it was pulled in January 2025 and has not been finalized despite a court order restoring it1:26:07.

Rep. Buddy Carter (R-GA)1:30:19: Argued the US should not "copy China" but double down on entrepreneurial capital and science that built US leadership1:31:12; raised API supply concerns1:11:49.

Rep. Debbie Dingell (D-MI)1:35:45: Said university researchers and students are leaving due to funding instability, risking the next generation of scientists1:36:36; asked Kowalski whether companies are making contingency plans in Canada, Europe, and Australia1:37:31.

Rep. Kat Cammack (R-FL)1:40:49: Proposed a user fee on INDs involving foreign clinical trial data to fund more FDA foreign inspections1:42:50; raised underrepresentation of women in trials1:44:11.

Rep. Nanette Barragan (D-CA)1:46:05: Cited elimination of FDA food-oversight offices amid a multistate cyclosporiasis outbreak1:46:29; pressed Bollyky on NIH cuts, hostility to international students, and pharmaceutical tariffs1:47:221:50:21.

Rep. Kean (NJ)1:51:19: Asked about consistency across FDA review divisions for rare-disease products1:51:46.

Rep. Alexandria Ocasio-Cortez (D-NY)1:58:14: Described AbbVie obtaining over 130 patents on Humira while its price rose from $500 to nearly $3,000 per syringe2:01:51; displayed an AstraZeneca inhaler and said a plastic cap-retention feature was used to file a new patent and block generic entry2:02:202:03:07.

Rep. Troy Balderson (R-OH)2:04:05: Asked about clinical trial design for wearables and digital technologies to reduce administrative burden2:04:372:08:12.

Rep. Troy Carter (D-LA)2:09:40: Asked what FDA workforce cuts and NIH funding threats mean for New Orleans research institutions like Tulane and LSU Health2:11:32.

Rep. Nick Langworthy (R-NY)2:14:48: Pushed on reducing animal testing through AI and virtual control groups while keeping data reliable enough to avoid offshoring to China2:15:392:18:04.

Rep. Greg Landsman (D-OH)2:20:19: Discussed his Biosimilar Red Tape Elimination Act with Rep. Pfluger and payer-adoption barriers to biosimilars reaching patients2:20:432:22:52.

Rep. Kim Schrier (D-WA)2:25:33: Noted China's share of global oncology trial starts hit 39% in the prior year, and compared early Chinese COVID vaccine efficacy (50–60%) to US mRNA vaccines (~95%)2:26:012:26:48; criticized the overhaul of ACIP2:29:57.

Rep. Lori Trahan (D-MA)2:31:19: Described a Lowell biotech, Versatile Therapeutics, whose NIH flu-vaccine grant was terminated and malaria grant frozen, forcing furloughs2:34:00; entered OMB Director Vought's June 30 response into the record2:36:09.

Rep. Marc Veasey (D-TX)2:37:02: Asked about ensuring clinical trial diversity and safeguards for novel endpoints and biomarkers2:37:372:39:56.

Rep. Claus (D-MA)2:42:32: Discussed bipartisan clinical-trial modernization legislation in draft form, including point-of-care enrollment, and asked what culture changes an incoming FDA commissioner should adopt2:44:412:45:36.

Rep. Mullin (D-CA)2:48:04: Represents South San Francisco biotech hub; asked Kowalski about impacts of delayed T1D therapies and pressed Winkler on FDA-sponsor communication2:49:312:50:17.

Key moments

Verst testified China accounted for 35% of Phase 1 trial starts by end of 2025 versus 27% for the US, with 89% of Chinese-company Phase 1 country uses occurring in China itself0:22:420:23:39.

Bollyky said China's share of global clinical trial starts rose from 1% in 2009 to 30% in 2024, while FDA conducted just 20 GCP inspections in China (under 1% of its total) between 2016 and 2023, versus 93% of inspections in the US0:44:240:45:54.

Hwang's research found the share of early-stage cancer trials with a Chinese site nearly tripled over seven years, and first-in-human cancer studies with any Chinese site doubled0:39:34.

DeGette said the recent OMB rule allowing political appointees to terminate grants for convenience could have destroyed the NIH-funded TEDDY diabetes study, and Kowalski called that scenario "a travesty"0:57:190:57:49.

Ocasio-Cortez showed that AbbVie obtained over 130 patents on Humira while its price rose from about $500 to nearly $3,000 per syringe, and displayed an AstraZeneca inhaler whose new patent centered on a plastic cap-retention piece rather than the medication itself2:01:302:02:47.

Trahan detailed a Lowell, Massachusetts biotech (Versatile Therapeutics) whose NIH flu-vaccine grant was terminated "for convenience" and whose malaria grant was frozen for months, leading to furloughs of ten scientists2:34:00.

Barragan pressed Bollyky to confirm that eliminating FDA food-oversight offices, cutting NIH funding, and restricting international students all undercut US biomedical leadership amid an active multistate cyclosporiasis outbreak1:46:291:48:21.

Schrier compared the first Chinese-developed COVID-19 vaccine's roughly 50–60% efficacy to the roughly 95% efficacy of the first American mRNA vaccines, warning of consequences if China leads the next pandemic response2:26:262:26:48.

Winkler and Verst both said budget/contract negotiations between trial sponsors and sites take too long and are a basic but underappreciated barrier to expanding decentralized trials1:34:531:57:15.

Bollyky recommended Congress add a user fee on INDs involving foreign clinical trial data specifically to fund more FDA inspection capacity in China, similar to generic-drug manufacturing user fees1:43:06.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Health
Chamber / CongressHouse · 119th Congress
Date2026-07-15
TypeHearing
Witnesses
Dr. Cynthia Verst — President, Design and Delivery Innovation, R&D Solutions, IQVIA
Ms. Susan Winckler — CEO, Reagan-Udall Foundation for the FDA
Dr. Aaron Kowalski — CEO, Breakthrough T1D
Dr. Thomas Hwang — Assistant Professor of Medicine, Brigham and Women's Hospital and Harvard Medical School
Mr. Thomas Bollyky — Bloomberg Chair in Global Health, Senior Fellow for International Economics, Law, and Development; and Director of the Global Health Program, Council
Videoyoutube
Transcript400 caption blocks · 26,482 words · 2:53:03 runtime
EventCongress.gov 119457