U.S. funding cuts trigger steep drop in mRNA vaccine investment

Venture financing for mRNA vaccine development has dropped 82% in 2025 amid political pressure and a $500M federal funding cut under the Trump administration.

Why it matters: The funding pullback threatens early-stage innovation in a field that once revolutionized the pandemic response, potentially slowing progress on both infectious disease and cancer vaccines.

Backstory: mRNA technology surged during COVID-19 with the success of Pfizer/BioNTech’s and Moderna’s vaccines. That momentum is now reversing due to political opposition, especially from Health Secretary RFK Jr., who questions mRNA vaccine efficacy and safety.

Zoom in: mRNA vaccine venture deals hit just $90m YTD in 2025, far below 2023’s $510m, according to GlobalData. mRNA drug venture funding dipped from $1.1B in 2023 to $488M in 2024, then modestly rebounded to $539M in 2025YTD.

Yes, but: Investment is shifting from mRNA vaccines toward mRNA-based drugs, especially in oncology and infectious diseases, which drew $1.3B and $936M respectively in venture capital from 2023–2025YTD. 91% of mRNA drugs outside these two areas remain stuck in early stages, reflecting delivery and safety challenges.

Big picture: Investors are growing cautious as U.S. policy shifts introduce uncertainty, especially as experts warn the U.S. stance could push biotech innovation abroad. The funding cuts have already halted 22 BARDA projects and could affect 232 ongoing clinical trials for mRNA vaccines. Despite this, private sector entities are managing to raise money for mRNA drug programs; Strand Therapeutics recently raised $153M for its drug programs.