The House Budget Committee yesterday cleared the pending $1.9 trillion COVID-19 relief legislation, which includes a one-time $500 million in additional FDA funding for coronavirus-related support, paving the way for the bill to be taken up by the House Rules Committee later this week.

The extra FDA funding is meant to bolster the agency’s postmarket surveillance of COVID-19 vaccines and therapeutics, as well as heighten the agency’s monitoring of drug shortages, among other activities. As a one-time funding increase, the money would not be reflected in the agency’s fiscal year budget.

In addition, the bill includes an amendment to eliminate Medicaid drug rebate caps starting in 2023. The provision is aimed at helping states recoup costs from their Medicaid programs when drugmakers raise the prices of costly drugs by allowing them to demand larger discounts.

Before moving to the House floor for a vote, the Rules Committee will first take up the bill this week at a date to be announced shortly.