Association leaders are keeping a sharp eye on federal policies that affect the industries and professions they serve as they begin to reshape industries throughout the U.S.
Shifting federal priorities are being made into federal policies, which in turn are impacting the professions and industries associations serve. The American Society for Association Executives (ASAE) has been keeping a close watch on how federal policies are rippling out across the U.S. economy — and the effects of these changes on companies and workers who attend their meetings.
The latest ASAE research, part of its ongoing Insight Updates series, asked more than 3,000 CEOs of associations and association management companies about what federal policies they find most potentially impactful on their members. Not surprisingly, the top concerns tended to revolve around reductions in federal funding, shifting economic and trade policies, and workforce challenges. Among the effects association leaders are already seeing are more concerns about managing budgets, increasing advocacy efforts, and adaptations in workforce strategy.
Among the findings of the most recent ASAE Insight Update on federal policies, associations and the individuals and industries they serve:
- Federal funding cuts. Government funding cuts were the top key policy area of concern to the executives. Association execs say their members are concerned about the effects reductions in federal government grants on their overall budgets, especially in research, healthcare and education — specifically naming cuts to specific programs including Medicare, Medicaid, NIH and NSF. They added that the uncertainty about future funding availability is making it difficult to plan long-term projects and are causing delays in ongoing projects and challenges in maintaining continuity in projects already under way. Government funding cuts was rated the most negatively of the various policy areas ASAE asked about, with almost 60% viewing it as “significantly negative.”
- Public policy shifts. Diversity, equity and inclusion (DEI) have been under fire via executive orders during the first months of the current administration, and the execs said these were among the top policy challenges they face, along with education policy, policies supporting scientific research and healthcare, and concerns around the federal workforce and funding.
- Trade and Economic policy effects. Tariffs that could increase the costs of good and materials, international trade disruptions and inflation concerns are creating strains on supply chains and driving up business operational costs, as well as making it difficult to plan ahead and influencing trade relationships.
- Workplace and employment changes. One of the most talked-about policy changes affecting the workforce the execs identified was immigration policies that restrict foreign labor and reduce diversity in the workforce that already is facing a shortage of skilled workers. The decrease in the federal workforce also is having a ripple effect, they said, including impacts ono public services. They also expressed concern about “brain drain” in science and academia as talented individuals look outside the U.S. for work, negatively impacting innovation and research in a broad range of industries. But they’re still not sure exactly how the Workforce and Skilled Trade Jobs Executive Order will play out — this was the area they showed the highest level of uncertainty about, though most said they were taking a “wait and see” approach through this period of policy ambiguity and political gridlock.
Association execs also were asked how their members were adapting to the changes. The top approaches they identified were instituting hiring freezes and workforce reductions. They also were cutting budgets for travel, professional development and research, which could have an impact on their ability to send employees to meetings and conventions, as well as tightening their workforce immigration-related policies. They also are adjusting their budgets, revising their supply chains and increasing their advocacy work in response to the changing federal policies. Also like their members, some are struggling with revenue loss and instituting layoffs and travel freezes.
“Associations are on the front lines of navigating the ripple effects of federal policy shifts across every sector of the economy,” said ASAE President and CEO Michelle Mason, FASAE, CAE. “This Insight Update underscores the importance of timely, data-driven intelligence to help association leaders anticipate challenges, seize opportunities, and advocate effectively for the industries and professions they serve.”
The full report is available free to ASAE members.
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