The Trump administration has abruptly cancelled a $766 million contract with Moderna for the development of a human bird flu vaccine, the pharmaceutical company announced today, in a move that has alarmed public health experts amid growing fears of a potential H5N1 pandemic.

The deal, awarded by the Biden administration last year, was part of a broader pandemic preparedness strategy as the H5N1 avian influenza virus began devastating U.S. dairy and poultry farms. Since then, the virus has infected more than 70 Americans, resulting in one death. Health experts warn it may be only a matter of time before the virus mutates to allow sustained human-to-human transmission — a development that could trigger a new global health crisis.

The cancellation comes just one day after the death of an 11-year-old boy in Cambodia from H5N1, marking the fifth death from the virus in the region this year.

A spokesperson for the Department of Health and Human Services (HHS) confirmed the cancellation, saying the decision followed an internal review. Health Secretary Robert F. Kennedy Jr., a longtime vaccine skeptic, has expressed repeated concerns over the safety of mRNA-based vaccines, despite their demonstrated success in combating COVID-19.

Earlier this week, Secretary Kennedy announced that mRNA COVID-19 vaccines would no longer be recommended for healthy children or pregnant women — a controversial policy shift that has drawn criticism from leading scientists.

The U.S. currently faces a significant shortfall in bird flu vaccine stockpiles, with only 0.82 doses available per person, according to data from disease analytics firm Airfinity. The now-cancelled contract with Moderna was expected to help bridge that gap by adding a fast-deployable mRNA-based H5N1 vaccine to the national arsenal.

Preliminary clinical trial results announced by Moderna this week showed the vaccine to be highly effective, with 98% efficacy in early testing involving 300 volunteers, and described as “generally well tolerated.”

Moderna, a Massachusetts-based biotechnology firm founded in 2010, received over $30 billion in U.S. government funding during the COVID-19 pandemic, which enabled the company to rapidly develop and deploy its mRNA vaccines in record time.

Public health advocates have expressed concern that the decision to cancel the Moderna contract could leave the U.S. dangerously underprepared in the event of an H5N1 outbreak.

“This is a short-sighted decision at a critical moment,” said one senior official at a major health organization who asked to remain anonymous. “Preparedness is not a partisan issue — it’s a matter of national security.”