
AP Photo/Gregory Bull
Michelle Saenz of Santee, Calif. buys baby formula at a grocery story across the border, Tuesday, May 24, 2022, in Tijuana, Mexico. As the baby formula shortage continues in the United States, some parents are opting to cross the border into Mexico, where the shelves are still stocked with options to feed their babies.Â
WASHINGTON (AP) — The head of the Food and Drug Administration said Wednesday that efforts to investigate problems at a baby formula plant linked to the nationwide shortage were slowed by COVID-19, scheduling conflicts and even a missing piece of mail.
FDA Commissioner Robert Califf laid out a series of setbacks in congressional testimony that slowed his agency’s response by months, including a whistleblower complaint that didn’t reach FDA leadership due to a “mailroom failure.”
Califf testified before a House subcommittee probing the shortage, which has forced the U.S. to begin airlifting products from Europe while many parents still hunt for scarce supplies in stores.
Califf told lawmakers FDA’s response was: “Too slow and there were decisions that were suboptimal along the way.”
The FDA and President Joe Biden face mounting pollical pressure to explain why they didn’t intervene earlier to try and address the supply problems. The oversight subcommittee’s ranking Republican quickly zeroed in on the slow response.
“Why did it take an onslaught of national media attention for the Biden administration to act with a sense of urgency required to address an infant formula shortage?” asked Rep. Morgan Griffith, R-Virginia. The panel will also hear from three formula manufacturers, including Abbott Nutrition.
The shortage mostly stems from Abbott’s Michigan plant, the largest in the U.S., which the FDA shut down in February due to contamination.
“We knew that ceasing plant operations would create supply problems but we had no choice given the insanitary conditions,” Califf said in opening testimony.
Califf gave the first detailed account of why his agency took months to inspect the plant despite learning of potential problems as early as September.
FDA staff began honing in on Abbott’s plant last fall while tracking several bacterial infections in infants who had consumed formula from the facility. The four cases occurred between September and January, leading to hospitalization and two deaths.
Califf told lawmakers the FDA began planning to visit the Sturgis, Michigan, plant in early December, with inspectors set to arrive on Dec. 30. But Abbott said that about a dozen of its employees had recently tested positive for COVID-19 and requested a delay. As a result, the FDA didn’t begin its inspection until Jan. 31.
After detecting positive samples of bacteria in multiple parts of the plant, the FDA closed the facility and Abbott announced a massive recall of its formula on Feb. 17.
Abbott and the FDA have reached an agreement to reopen the plant next week, requiring the company to regularly undergo outside safety audits.
Califf also laid out the agency’s months-long timeline responding to an October whistleblower complaint alleging numerous safety violations at Abbott’s plant, including employees falsifying records.
Several FDA staffers reviewed the complaint in late October, but officials didn’t request an interview until early December. Because of conflicts with the whistleblower’s schedule, the interview didn’t take place until Dec. 22, according to the FDA testimony.
Senior FDA officials eventually received emailed copies of the complaint, but not until February due to “an isolated failure in FDA’s mailroom, likely due to COVID-19 staffing issues,” according to the prepared remarks. A mailed copy addressed to then-acting commissioner Dr. Janet Woodcock has still not been located, according to the FDA.
Political fury over the shortage has landed squarely on the FDA and Califf, the only administration official who has testified thus far on the issue. The problems have quickly snowballed into a political firestorm for President Joe Biden, who has invoked the Defense Production Act and emergency flights to shore up supplies.
Califf is also facing questions about why his agency didn’t anticipate the shortage, given that Abbott’s plant supplies roughly one-sixth of the U.S. formula supply. FDA regulators did not contact the U.S. Department of Agriculture about impacts to the formula supply until Feb. 11. Califf’s testimony states that his agency does not have the “authority, resources, or dedicated staff” to track supply chain disruptions. He asked lawmakers for new powers and resources to monitor the information.
Behind the shortage are other distinct factors, including industry consolidation that’s made the U.S. formula market vulnerable to disruptions at individual companies.
An Abbott executive is expected to tell the committee that his company will invest in additional capacity and supply chain safeguards. After the company restarts production next month it will be able to produce more formula than before the recall, according to prepared remarks from Abbott’s senior vice president, Christopher Calamari.
The company will restate its contention that there is no direct link between its formula and the infant infections investigated by the FDA. Agency regulators have said the small number of cases and incomplete testing data make it hard to draw a direct connection between the illnesses and Abbott’s plant.
Executives from Reckitt and Gerber are also scheduled to testify.
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FDA chief: COVID, mail mix-up delayed action on baby formula
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The U.S. economy is now a full year into a historic run of inflation. Year-over-year price increases in the Consumer Price Index have topped 5% in every month since May 2021, peaking at 8.5% in March. While the Federal Reserve has begun to raise interest rates to cool the economy, supply chain challenges and strong consumer demand throughout the pandemic have sent inflation to its highest levels in four decades.
While countless headlines over the last year have invoked widespread concerns about inflation, not every household experiences rising prices in the same way. For example, homeowners who bought before the pandemic have been spared from spiking prices for housing costs, while remote workers have been less susceptible to rising costs for vehicles and gasoline. And amid a tight labor market and the Great Resignation, many workers have seen their wage gains outpace the rate of inflation—but for those who haven’t, rising prices have effectively given them a pay cut.
Even before the current run of inflation, many workers were already in a challenging position due to relatively slow wage growth relative to prices over the last decade. Average hourly earnings showed year-over-year growth of between 2% and 3% for most of the decade before the pandemic, falling behind the rate of growth in the CPI at several points. And over this period, higher earners—who may already be better equipped to withstand rising prices—saw their wages grow significantly faster than lower earners.
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Photo Credit: sebra / Shutterstock
The U.S. economy is now a full year into a historic run of inflation. Year-over-year price increases in the Consumer Price Index have topped 5% in every month since May 2021, peaking at 8.5% in March. While the Federal Reserve has begun to raise interest rates to cool the economy, supply chain challenges and strong consumer demand throughout the pandemic have sent inflation to its highest levels in four decades.
While countless headlines over the last year have invoked widespread concerns about inflation, not every household experiences rising prices in the same way. For example, homeowners who bought before the pandemic have been spared from spiking prices for housing costs, while remote workers have been less susceptible to rising costs for vehicles and gasoline. And amid a tight labor market and the Great Resignation, many workers have seen their wage gains outpace the rate of inflation—but for those who haven’t, rising prices have effectively given them a pay cut.
Even before the current run of inflation, many workers were already in a challenging position due to relatively slow wage growth relative to prices over the last decade. Average hourly earnings showed year-over-year growth of between 2% and 3% for most of the decade before the pandemic, falling behind the rate of growth in the CPI at several points. And over this period, higher earners—who may already be better equipped to withstand rising prices—saw their wages grow significantly faster than lower earners.
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FDA chief: COVID, mail mix-up delayed action on baby formula
The pandemic and rising prices over the last year have changed this picture. Early in the pandemic, year-over-year wage growth spiked to more than 7.5% and has stayed around 5% for most of the last two years, nearly twice the rate of growth over the previous decade. This was good news for workers initially, as wage growth far exceeded the rate of inflation. But with prices rising rapidly, data from March 2022 year-over-year changes in the CPI are outpacing year-over-year changes in hourly earnings by 3 percentage points.
Changes in cost of living have also affected workers differently according to geography. More than two-thirds of states saw cost of living decrease relative to the national average in the decade before the pandemic. In contrast, coastal states like Washington, Oregon, and Massachusetts led the nation in cost of living increases over the same span.
The pandemic and rising prices over the last year have changed this picture. Early in the pandemic, year-over-year wage growth spiked to more than 7.5% and has stayed around 5% for most of the last two years, nearly twice the rate of growth over the previous decade. This was good news for workers initially, as wage growth far exceeded the rate of inflation. But with prices rising rapidly, data from March 2022 year-over-year changes in the CPI are outpacing year-over-year changes in hourly earnings by 3 percentage points.
Changes in cost of living have also affected workers differently according to geography. More than two-thirds of states saw cost of living decrease relative to the national average in the decade before the pandemic. In contrast, coastal states like Washington, Oregon, and Massachusetts led the nation in cost of living increases over the same span.
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FDA chief: COVID, mail mix-up delayed action on baby formula
But with wage growth in mind, rising cost of living hasn’t necessarily reduced real income for the typical worker in more expensive states. Many of the states that had faster growth in cost of living, like California and Colorado, also have experienced economic prosperity that increased wages more rapidly than in other parts of the country. The state whose workers might be best off in recent years is Utah, which saw the nation’s fastest growth in real per capita income from 2010 to 2020 at 43.1% and had the seventh-lowest change in cost of living over that span. At both the state and metro level, other locations have struggled with the opposite problem: slower increases in income alongside faster increases in cost of living. States where incomes have increased most slowly over the last decade include Alaska, Connecticut, Oklahoma, and Louisiana.
But with wage growth in mind, rising cost of living hasn’t necessarily reduced real income for the typical worker in more expensive states. Many of the states that had faster growth in cost of living, like California and Colorado, also have experienced economic prosperity that increased wages more rapidly than in other parts of the country. The state whose workers might be best off in recent years is Utah, which saw the nation’s fastest growth in real per capita income from 2010 to 2020 at 43.1% and had the seventh-lowest change in cost of living over that span. At both the state and metro level, other locations have struggled with the opposite problem: slower increases in income alongside faster increases in cost of living. States where incomes have increased most slowly over the last decade include Alaska, Connecticut, Oklahoma, and Louisiana.
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FDA chief: COVID, mail mix-up delayed action on baby formula
The data used in this analysis is from the U.S. Bureau of Economic Analysis’ Real Personal Income tables. To determine the locations where incomes have struggled to keep pace with inflation, researchers at LLC.org calculated the percentage change in real per capita income between 2010 and 2020, with lower values being ranked higher. All values shown are inflation-adjusted to 2020 dollars. To improve relevance, only metropolitan areas with at least 100,000 residents were included. Additionally, metros were grouped into cohorts based on population size.
Here are the U.S. metropolitan areas where incomes have struggled to keep pace with inflation.
The data used in this analysis is from the U.S. Bureau of Economic Analysis’ Real Personal Income tables. To determine the locations where incomes have struggled to keep pace with inflation, researchers at LLC.org calculated the percentage change in real per capita income between 2010 and 2020, with lower values being ranked higher. All values shown are inflation-adjusted to 2020 dollars. To improve relevance, only metropolitan areas with at least 100,000 residents were included. Additionally, metros were grouped into cohorts based on population size.
Here are the U.S. metropolitan areas where incomes have struggled to keep pace with inflation.
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FDA chief: COVID, mail mix-up delayed action on baby formula
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: f11photo / Shutterstock
- Percentage change in per capita income (2010–2020): +22.7%
- Total change in per capita income (2010–2020): +$10,888
- 2020 per capita income: $58,828
- 2010 per capita income: $47,940
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Photo Credit: f11photo / Shutterstock
- Percentage change in per capita income (2010–2020): +22.7%
- Total change in per capita income (2010–2020): +$10,888
- 2020 per capita income: $58,828
- 2010 per capita income: $47,940
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +22.5%
- Total change in per capita income (2010–2020): +$10,161
- 2020 per capita income: $55,398
- 2010 per capita income: $45,237
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +22.5%
- Total change in per capita income (2010–2020): +$10,161
- 2020 per capita income: $55,398
- 2010 per capita income: $45,237
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Travellaggio / Shutterstock
- Percentage change in per capita income (2010–2020): +22.4%
- Total change in per capita income (2010–2020): +$14,273
- 2020 per capita income: $78,095
- 2010 per capita income: $63,822
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Photo Credit: Travellaggio / Shutterstock
- Percentage change in per capita income (2010–2020): +22.4%
- Total change in per capita income (2010–2020): +$14,273
- 2020 per capita income: $78,095
- 2010 per capita income: $63,822
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: f11photo / Shutterstock
- Percentage change in per capita income (2010–2020): +22.4%
- Total change in per capita income (2010–2020): +$11,249
- 2020 per capita income: $61,555
- 2010 per capita income: $50,306
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Photo Credit: f11photo / Shutterstock
- Percentage change in per capita income (2010–2020): +22.4%
- Total change in per capita income (2010–2020): +$11,249
- 2020 per capita income: $61,555
- 2010 per capita income: $50,306
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +21.6%
- Total change in per capita income (2010–2020): +$11,232
- 2020 per capita income: $63,321
- 2010 per capita income: $52,089
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +21.6%
- Total change in per capita income (2010–2020): +$11,232
- 2020 per capita income: $63,321
- 2010 per capita income: $52,089
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Valiik30 / Shutterstock
- Percentage change in per capita income (2010–2020): +20.4%
- Total change in per capita income (2010–2020): +$10,630
- 2020 per capita income: $62,762
- 2010 per capita income: $52,132
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Photo Credit: Valiik30 / Shutterstock
- Percentage change in per capita income (2010–2020): +20.4%
- Total change in per capita income (2010–2020): +$10,630
- 2020 per capita income: $62,762
- 2010 per capita income: $52,132
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Alexandr Junek Imaging / Shutterstock
- Percentage change in per capita income (2010–2020): +19.8%
- Total change in per capita income (2010–2020): +$9,210
- 2020 per capita income: $55,652
- 2010 per capita income: $46,442
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Photo Credit: Alexandr Junek Imaging / Shutterstock
- Percentage change in per capita income (2010–2020): +19.8%
- Total change in per capita income (2010–2020): +$9,210
- 2020 per capita income: $55,652
- 2010 per capita income: $46,442
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: f11photo / Shutterstock
- Percentage change in per capita income (2010–2020): +19.7%
- Total change in per capita income (2010–2020): +$10,464
- 2020 per capita income: $63,531
- 2010 per capita income: $53,067
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Photo Credit: f11photo / Shutterstock
- Percentage change in per capita income (2010–2020): +19.7%
- Total change in per capita income (2010–2020): +$10,464
- 2020 per capita income: $63,531
- 2010 per capita income: $53,067
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Henryk Sadura / Shutterstock
- Percentage change in per capita income (2010–2020): +19.3%
- Total change in per capita income (2010–2020): +$8,574
- 2020 per capita income: $52,981
- 2010 per capita income: $44,407
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Photo Credit: Henryk Sadura / Shutterstock
- Percentage change in per capita income (2010–2020): +19.3%
- Total change in per capita income (2010–2020): +$8,574
- 2020 per capita income: $52,981
- 2010 per capita income: $44,407
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +17.9%
- Total change in per capita income (2010–2020): +$9,105
- 2020 per capita income: $60,012
- 2010 per capita income: $50,908
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +17.9%
- Total change in per capita income (2010–2020): +$9,105
- 2020 per capita income: $60,012
- 2010 per capita income: $50,908
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +16.6%
- Total change in per capita income (2010–2020): +$8,014
- 2020 per capita income: $56,419
- 2010 per capita income: $48,405
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +16.6%
- Total change in per capita income (2010–2020): +$8,014
- 2020 per capita income: $56,419
- 2010 per capita income: $48,405
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +16.6%
- Total change in per capita income (2010–2020): +$7,286
- 2020 per capita income: $51,295
- 2010 per capita income: $44,009
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +16.6%
- Total change in per capita income (2010–2020): +$7,286
- 2020 per capita income: $51,295
- 2010 per capita income: $44,009
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: ESB Professional / Shutterstock
- Percentage change in per capita income (2010–2020): +15.6%
- Total change in per capita income (2010–2020): +$9,348
- 2020 per capita income: $69,115
- 2010 per capita income: $59,766
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Photo Credit: ESB Professional / Shutterstock
- Percentage change in per capita income (2010–2020): +15.6%
- Total change in per capita income (2010–2020): +$9,348
- 2020 per capita income: $69,115
- 2010 per capita income: $59,766
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Sean_Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +14.9%
- Total change in per capita income (2010–2020): +$8,523
- 2020 per capita income: $65,724
- 2010 per capita income: $57,201
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Photo Credit: Sean_Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +14.9%
- Total change in per capita income (2010–2020): +$8,523
- 2020 per capita income: $65,724
- 2010 per capita income: $57,201
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FDA chief: COVID, mail mix-up delayed action on baby formula
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +14.1%
- Total change in per capita income (2010–2020): +$7,417
- 2020 per capita income: $60,092
- 2010 per capita income: $52,675
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Photo Credit: Sean Pavone / Shutterstock
- Percentage change in per capita income (2010–2020): +14.1%
- Total change in per capita income (2010–2020): +$7,417
- 2020 per capita income: $60,092
- 2010 per capita income: $52,675