This bill amends the structure, assessment timing, and authorization period for user fees related to Over-the-Counter (OTC) monograph drugs through fiscal year 2030.
Robert Latta
Representative
OH-5
This bill, the Over-the-Counter Monograph Drug User Fee Amendments, updates the fee structure and authority for the FDA to collect and use user fees to fund activities related to Over-the-Counter (OTC) monograph drugs through fiscal year 2030. It modifies definitions, adjusts the assessment and payment timelines for facility fees, and extends the program's authorization. The legislation also includes minor technical updates regarding drug development advice and sets sunset dates for certain provisions.
This legislation, the Over-the-Counter Monograph Drug User Fee Amendments, is a technical but crucial bill that essentially keeps the lights on for the FDA’s regulatory work on common, non-prescription drugs—think everything from Tylenol to antacids. It reauthorizes the FDA to collect user fees from the manufacturers of these over-the-counter (OTC) drugs, extending the program for another five years, from Fiscal Year 2026 through 2030. If you’ve ever wondered who pays for the government to ensure your pain reliever is safe, this is the mechanism: the industry pays fees dedicated solely to funding that oversight, rather than relying on taxpayer dollars.
The core of the bill is Section 4, which dictates how the FDA collects these facility fees. For manufacturers, the fee schedule is getting a significant update. The bill sets specific total revenue targets the FDA must collect each year from 2026 to 2030, including extra direct cost adjustments—like an additional $2,373,000 in FY 2026 alone. This means the industry is locked into funding the FDA’s OTC program for the next half-decade. For everyday consumers, this is generally a good thing: it ensures a dedicated, stable funding stream for the safety and quality review of drugs we rely on daily. However, manufacturers will inevitably factor these mandatory fees into their operating costs, which could, in turn, influence the final price you pay at the pharmacy counter.
Beyond the fees, the bill makes some important regulatory adjustments. Section 3 refines the definition of a “change” in an OTC drug’s manufacturing process that requires FDA review. Specifically, it now counts adding or changing a testing procedure as a regulatory event, if that new procedure follows a “voluntary consensus standard” recognized by the FDA. This is a subtle but important shift. It signals the FDA is moving toward accepting industry-developed standards for quality testing, which could potentially streamline the approval process for minor manufacturing updates. For a company, this could mean less time waiting for government approval on a technical change. For the public, the impact depends entirely on how rigorous those recognized “voluntary consensus standards” actually are.
Finally, this legislation provides long-term stability by extending the program’s authorization. Sections 5 and 7 push the expiration date for the key fee collection and regulatory sections of the Federal Food, Drug, and Cosmetic Act from 2025 all the way out to October 1, 2030. This gives manufacturers and the FDA a clear five-year runway, allowing for better long-term planning and investment without the immediate threat of the funding authority expiring. The changes take effect starting on October 1, 2025 (Section 8), ensuring a smooth transition from the current system to the new one. This kind of administrative housekeeping might sound boring, but it’s essential for ensuring the continued, uninterrupted flow of safe and effective non-prescription medicines onto store shelves.