Strategy and Operations

Associations Respond to the Government Shutdown

As congressional gridlock forces the temporary end of funding for the federal government, groups are stressing the impact of the problem and offering members lifelines.

Following the shutdown of the federal government that began October 1, associations have been speaking out about the risks to their industries and providing support to their members.

The National Council of Nonprofits, which represents charitable organizations, said the shutdown will “disrupt the vital work of nonprofits in local communities, preventing them from delivering the critical services on which the American people rely,” said president and CEO Diane Yentel in a statement. 

Dr. Akilah Watkins, President and CEO of Independent Sector, which represents nonprofit and philanthropic groups, echoed the point in a statement, saying, “in this this moment where so many nonprofit organizations are already facing budget shortfalls and grant interruptions, the impacts of even a short shutdown could be severe and long-lasting.”

In a statement, National Small Business Association President and CEO Todd McCracken warned that many member businesses, including government contractors, will be “impacted by contract delays, stoppages, and cancellations.” and that businesses supported by the U.S. Small Business Administration will face delayed responses and slow approvals. 

Multiple organizations emphasized the negative impact the shutdown will have on innovation efforts. Association of Public and Land-Grant University president Waded Cruzado released a statement saying that the shutdown interrupts research in “AI, robotics, quantum computing, and many other areas.” 

Striking a similar note, American Association for the Advancement of Science CEO Sudip Parikh stated that “shutting down the government is no way to unleash U.S. innovation. This act delays setting clear priorities for our nation’s research enterprise and amplifies uncertainty that has enveloped the scientific community.”

The U.S. Travel Association estimates that the shutdown costs the U.S. travel industry $1 billion weekly.

U.S. Travel Association CEO Geoff Freeman warned of the broad economic impact of an extended shutdown, writing in a statement that “A shutdown is a wholly preventable blow to America’s travel economy—costing $1 billion every week—and affecting millions of travelers and businesses while placing unnecessary strain on an already overextended federal travel workforce.”

Georgia Machell, President and CEO of the National WIC Association, which represents administrators of the federally funded Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), wrote that the shutdown would drain funds for the program within weeks and “needlessly jeopardizes the health and nutrition of millions of pregnant women, new mothers, infants, and young children who rely on WIC.”

Amid the challenges presented by the shutdown, associations have been providing support and guidance for those affected by it. The American Bankers Association, for instance, is maintaining a list of banks that are offering a variety of supports for federal employees who are not receiving pay during the shutdown.  USAA, which represents members of the military and their families, has its own financial support program.
Similarly, the National Association of Housing and Redevelopment Officials maintains a series of updates of how federal agencies related to NAHRO’s work are responding during the shutdown. The American Telemedicine Association has gathered resources for members affected by rules affecting telehealth during the shutdown.

Mark Athitakis

By Mark Athitakis

Mark Athitakis, a contributing editor for Associations Now, has written on nonprofits, the arts, and leadership for a variety of publications. He is a coauthor of The Dumbest Moments in Business History and hopes you never qualify for the sequel. MORE

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