• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Wyoming officials say Meta’s 715,000-square-foot data center is responsible for contaminating its water system with a rare bacterium

2

Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts

3

U.S. Treasury has borrowed $155 billion every month of this fiscal year—and is now paying $24 billion a week in interest on its debts

1

Wyoming officials say Meta’s 715,000-square-foot data center is responsible for contaminating its water system with a rare bacterium

2

Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts

3

U.S. Treasury has borrowed $155 billion every month of this fiscal year—and is now paying $24 billion a week in interest on its debts
HealthFDA

FDA reverses course on RTO order after layoffs and resignations threaten basic operations like approving new medicines

By
Matthew Perrone
Matthew Perrone
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Matthew Perrone
Matthew Perrone
and
The Associated Press
The Associated Press
Down Arrow Button Icon
April 10, 2025, 6:10 AM ET
The U.S. Food and Drug Administration building behind FDA logos at a bus stop on the agency's campus in Silver Spring, Md, on Aug. 2, 2018.
The U.S. Food and Drug Administration building behind FDA logos at a bus stop on the agency's campus in Silver Spring, Md, on Aug. 2, 2018.Jacquelyn Martin—AP
Add Fortune on Google for similar content.

Weeks after ordering Food and Drug Administration employees back into the office, the agency is reversing course, allowing some of its most prized staffers to work remotely amid worries that recent layoffs and resignations could jeopardize basic functions, like approving new medicines.

Recommended Video

An internal email obtained by The Associated Press states that FDA leadership are “allowing review staff and supervisors to resume telework” at least two days a week. The policy shift was confirmed by three FDA staffers who spoke to the AP on the condition of anonymity to discuss internal agency matters.

The message was sent Tuesday to some of FDA’s hundreds of drug reviewers. Staffers said a similar policy was communicated to reviewers who handle vaccines, biotech drugs and medical devices, although not necessarily in writing.

It’s the latest example of the Trump administration’s chaotic approach to overhauling the federal health workforce, which has included firings, a scramble to rehire some employees, and then additional layoffs last week of an estimated 3,400 staffers, or more than 15% of the agency’s workforce.

Last week’s cuts included entire offices focusing on FDA policy and regulations, most of the agency’s communication staff and teams that support food inspectors and investigators. Senior officials overseeing tobacco, new drugs, vaccines and other products have also been dismissed or forced to resign. Staffers have described lower level employees as “pouring” out of the agency.

Former FDA Commissioner Dr. David Kessler called the cuts “devastating, haphazard, thoughtless and chaotic” during a House hearing on Wednesday.

When Health Secretary Robert F. Kennedy Jr. announced plans to eliminate 10,000 staffers across the federal health workforce, he noted out that FDA medical reviewers and safety inspectors wouldn’t be impacted. HHS did not immediately respond to a request for comment Wednesday evening.

In February, HHS was forced to recall some probationary employees who were fired, including hundreds of medical reviewers at FDA, who are largely funded by industry fees, not federal dollars.

But last week’s cuts combined with resignations and retirements have raised a new threat: that FDA funding could fall so low that it short circuits a long-standing system in which companies help fund much of the agency’s operations.

Nearly half the FDA’s $7 billion budget comes from fees collected from drug, device and tobacco companies. The agency uses the money to hire thousands of staffers to quickly and efficiently review new products. For example, about 70% of the FDA’s drug program is financed by user-fee agreements, which must be reauthorized by Congress every five years.

But the agreements stipulate that if FDA’s federal funding falls below set levels, companies are no longer required to pay and, in some cases, can claw back their money. The threshold requirements are designed to ensure Congress continues funding FDA, rather than relying entirely on the private sector.

FDA and industry groups are supposed to begin negotiations later this year to renew several user-fee agreements, including those for drugs and devices.

“I don’t think the agency nor regulated industry can afford for ‘user fees’ not to be reauthorized,” said Michael Gaba, an attorney who advises FDA-regulated companies.

Whatever the reasoning behind the telework shift, former federal officials say it’s a sign that recently confirmed FDA Commissioner Marty Makary is trying to retain and rebuild agency staffing. Makary made his first appearance at FDA’s headquarters last Wednesday, one day after the mass layoffs. According to the memo obtained by the AP, Makary signed off on the return to telework for some employees.

“Dr. Makary needs to rebuild teams and restart the engine of productivity lost to weeks of job insecurity, uncertainty and shortages of team members,” said Steven Grossman, a former HHS official. “Turning commuting time back into work time is a great first step in achieving both.”

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Authors
By Matthew Perrone
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Health

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Health

Other diet fads championed by MAHA are questionable. But some science and thousands of years of human history are behind fermented foods
HealthFood and drink
Other diet fads championed by MAHA are questionable. But some science and thousands of years of human history are behind fermented foods
By Devi Shastri, Mary Conlon and The Associated PressJuly 11, 2026
13 hours ago
The 3 Best IgG Food Panel Tests of 2026: Reviewed by Experts
HealthDietary Supplements
The 3 Best IgG Food Panel Tests of 2026: Reviewed by Experts
By Emily PharesJuly 10, 2026
1 day ago
The Best Vitamin D Tests (2026): How to Use at Home and the Lab
HealthDietary Supplements
The Best Vitamin D Tests (2026): How to Use at Home and the Lab
By Christina SnyderJuly 10, 2026
1 day ago
NordicTrack as best elliptical
HealthFitness
Nordictrack X16 Elliptical Review (2026): Hands-On Testing Feedback
By Emily PharesJuly 10, 2026
1 day ago
The 7 Best Treadmills for Home (2026): Fitness Expert Tested
HealthDietary Supplements
The 7 Best Treadmills for Home (2026): Fitness Expert Tested
By Emily PharesJuly 10, 2026
2 days ago
Vietnam is paying women to have more babies—but there’s a catch: they have to be on baby no. 2 to qualify for the $68 million budget
SuccessCareers
Vietnam is paying women to have more babies—but there’s a catch: they have to be on baby no. 2 to qualify for the $68 million budget
By Orianna Rosa RoyleJuly 10, 2026
2 days ago

Most Popular

Wyoming officials say Meta’s 715,000-square-foot data center is responsible for contaminating its water system with a rare bacterium
Environment
Wyoming officials say Meta’s 715,000-square-foot data center is responsible for contaminating its water system with a rare bacterium
By Sasha RogelbergJuly 10, 2026
2 days ago
Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts
Success
Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts
By Emma BurleighJuly 9, 2026
3 days ago
U.S. Treasury has borrowed $155 billion every month of this fiscal year—and is now paying $24 billion a week in interest on its debts
Economy
U.S. Treasury has borrowed $155 billion every month of this fiscal year—and is now paying $24 billion a week in interest on its debts
By Eleanor PringleJuly 10, 2026
2 days ago
Top Iranian officials admitted to the supreme leader that the U.S. naval blockade was crushing the economy, report says, as Trump eyes reimposing it
Middle East
Top Iranian officials admitted to the supreme leader that the U.S. naval blockade was crushing the economy, report says, as Trump eyes reimposing it
By Jason MaJuly 10, 2026
1 day ago
'The first time ever in my career': Senior Citi executive on why the ultrawealthy want to diversify away from America
Banking
'The first time ever in my career': Senior Citi executive on why the ultrawealthy want to diversify away from America
By Nick LichtenbergJuly 11, 2026
17 hours ago
Americans are quietly abandoning the daily habit that billionaires say set them up for success—and it could have lasting consequences
Success
Americans are quietly abandoning the daily habit that billionaires say set them up for success—and it could have lasting consequences
By Preston ForeJuly 11, 2026
17 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.