Texas Court Ruling on FDA Lab-Developed Test Rule Raises Regulatory Uncertainty
A March 2025 ruling by a federal judge in Texas has thrown the FDA’s new laboratory-developed test (LDT) rule into uncertainty, with major implications for clinical laboratories and test developers.
The FDA finalized a rule in May 2024 to bring most LDTs (diagnostics designed, manufactured, and used within a single clinical laboratory) under its medical device regulatory framework. Historically, LDTs have been largely overseen under CLIA (Clinical Laboratory Improvement Amendments) and professional accreditation, with the FDA exercising “enforcement discretion” and generally not requiring premarket review.
In response, several plaintiffs, including the Texas Public Policy Foundation and a group of medical laboratories, challenged the rule, arguing that the FDA exceeded its statutory authority. In March 2025, Judge Jeremy Kernodle of the U.S. District Court for the Eastern District of Texas issued a decision siding with the plaintiffs, stating that FDA’s regulation of LDTs under the device provisions of the Food, Drug, and Cosmetic Act was unlawful as applied to the plaintiffs.
The ruling does not immediately invalidate the rule nationwide, but it creates a split environment: some labs may be shielded under this decision while others remain subject to FDA’s framework, at least until higher courts weigh in. The Justice Department is expected to appeal, and the issue could ultimately reach the Supreme Court. In the meantime, the decision injects significant regulatory uncertainty into how LDTs will be overseen and how quickly new tests can reach patients.
For laboratories and manufacturers that rely on specialized or high-complexity testing, the legal status of FDA’s LDT rule affects:
While Materials Analytical Services (MAS) focuses on ISO/IEC 17025–accredited analytical testing rather than clinical diagnostics, these developments illustrate the broader trend toward closer federal scrutiny of laboratory activities. Maintaining robust quality systems, clear validation, and transparent methods remains critical regardless of the specific regulatory regime.

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