The 2024 election results are in, and with Republicans now controlling both the White House and Congress, the human services industry faces significant policy shifts that could reshape how critical social support programs are funded and delivered. As federal priorities shift toward cost-cutting and deregulation, human services providers must prepare for challenges in securing funding and meeting increased demand.
Potential Changes to Federal Funding and Programs
With anticipated regulatory rollbacks and shifts in federal funding, key human services programs such as Medicaid, Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and affordable housing may face significant changes. The possibility of block grant restructuring of these social safety net programs could shift more control to states but potentially reducing overall federal funding levels. Renewed focus on budget cuts or spending caps may impact nonprofit organizations and service providers that rely heavily on federal grants. Additionally, as with every change in administration, Medicaid expansion policy adjustments could affect coverage for low-income individuals, with Republican control potentially leading to tighter eligibility requirements or work mandates.
Navigating the Opportunities and Risks of Deregulation
The Republican sentiment to deregulate could have both positive and negative impacts for the industry. For example, efforts to streamline government oversight might ease the administrative compliance burden of reporting requirements, but on the other hand, reduced regulatory frameworks could lead to less oversight of program implementation at the state level, creating inconsistencies in how funds are distributed and how services are delivered. The general shift of accountability measures from federal agencies to state governments or private funders means organizations may need to adapt their operations and reporting to meet varied expectations in an ever-changing landscape. Lessening of regulatory burdens around data privacy and digital transactions are another aspect of deregulation that is worth monitoring.
Economic Uncertainty and Increased Demand
Lastly, the uncertainty that comes with potential changes in federal economic policy could significantly increase the demand for human services as inflation and rising housing costs place greater strain on low-income families. At the same time, demographic shifts, including a growing aging population, are expected to drive higher demand for elder care, disability services, and other critical support programs. These trends not only heighten the need for expanded services but also underscore workforce challenges within the sector, as organizations struggle to recruit and retain staff to meet the increasing demand. Changes in federal labor laws, including potential reforms to overtime rules, minimum wage adjustments, and employee classification, could impact staffing costs and operational flexibility for service providers. The new administration’s focus on revamped immigration policies could also affect workforce availability.
Overall, during this post-election “lame duck” period, human services organizations may find it beneficial to collaborate with industry groups and coalitions to advocate for policy and funding protections for critical programs. It is also a good time to continue to build partnerships with local governments and other nonprofits to increase collective impact, and to develop contingency plans to address possible funding cuts or regulatory changes. We are here to help our clients stay informed, adapt to changes, and continue to serve those in need effectively.
If you need further guidance or have any questions on this topic, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
