Hickey Institute Webinar: Post-Election Update
January 21, 2025
Just before the end of the year, Hickey & Associates and Hickey Global joined forces at the Hickey Institute to offer a Post-Election Update Webinar. While neither firm can see the future, there are lots of clues and speculations about how things may change at the federal government level and how those changes will impact site selection and economic development processes moving forward.
Hickey & Associates outlined several high-profile federal programs that may see significant funding reductions if they aren’t ended altogether. In what potentially may be a federal funding spending cliff, the American Recovery Plan Act (ARPA), the CHIPS & Science Act, and the Inflation Reduction Act all have uncertain futures. Especially concerning is the fact that billions of dollars in funding committed to communities under these and other programs for infrastructure improvements, green and sustainable development projects, and job creation investments that have yet to be disbursed may never be delivered to expectant communities. In addition to funds disbursement uncertainties, the very agencies and programs that establish popular economic development incentives like the Economic Development Administration, Community Development Block Grants, and USDA Rural Development program have futures that are in flux.
These and other changes will undoubtedly impact the site selection process as well. With less federal funding available to entice projects, states may find it necessary to establish incentive funds that help ease the cost of development. Additionally, communities using federal funding tools to address disadvantaged populations will likely lose that support.
On the economic development side, Hickey Global drew attention to several priorities of interest, guided by the policy positions of the International Economic Development Council (IEDC). The overarching policies that practitioners should be aware of include a variety of focus areas known to be a top priority for the incoming Trump Administration, ranging from prioritizing America First trade policies and priorities to reshaping the civil service and creating the new Department of Government Efficiency.
Tariffs, which were also of focus for the Hickey site selection overview, come up in several ways for economic developers. First, raising import tariffs could compel some companies to expand their operations into the US. As a result, communities should consider enhancing (or establishing) a foreign direct investment (FDI) focus to be prepared to locate international firms in what may be an America more scrutinous of FDI. Additionally, tariffs' impact on the availability of critical minerals in the supply chain could be disruptive. Economic development organizations should think critically about creating and controlling domestic supply chain resiliency against threats to product inputs. Additionally, uncertainty around immigration changes and federal incentive funding are also anticipated to significantly impact economic development in communities nationwide.
While all the changes may seem overwhelming, there is hope for success. Thinking strategically about how some of the changes discussed in the webinar might directly impact your community is one way to focus strategic economic development efforts on what your community can control. Refining your targeted cluster focus, seeking out new partnerships, and revising incentives and their criteria are three examples of meaningful things your organization can do now to prepare for the changes that are just around the corner. Connect with a Hickey Global team member today to share your plans for the changes ahead. We may be able to help!