Federal and State Association Policy Issues

ASAE advocates on behalf of the entire association community on federal and state policy issues that directly affect the ability of associations to serve their industries, professions, and communities. The following are ASAE's current legislative and regulatory priorities.

Preserving the Tax-Exempt Status of Associations

Associations, charities, and other nonprofit organizations are granted tax-exempt status by the IRS because they serve a public purpose, not private shareholders. This foundational principle has been part of federal law for more than a century, dating back to the creation of the federal income tax in 1913, and it remains essential to a strong and independent civil society.

Tax-exempt organizations are already among the most transparent and heavily regulated entities in the United States. They do not distribute profits to shareholders, and any business income unrelated to their exempt purpose is already subject to federal income tax. Associations use their resources to advance industries and professions, facilitate workforce development, set standards that protect consumers, and strengthen local economies. Together, associations support more than one million jobs nationwide and generate tens of billions of dollars in economic activity each year. ASAE works through the Community Impact Coalition to educate lawmakers on the value of the tax-exempt sector and to oppose any legislative proposals that would undermine the ability of associations and other nonprofits to fulfill their missions.

Full Implementation of the 529 Savings Plan Expansion

In 2025, Congress enacted the Freedom to Invest in Tomorrow's Workforce Act as part of new federal law, expanding eligible uses of tax-advantaged 529 savings plans to include postsecondary training and credentialing programs. This landmark expansion enables workers and families to use 529 funds to cover the costs of professional certifications, credential examinations, continuing education, and other career-building programs, with or without a traditional college degree.

Associations are America's leading providers of workforce credentials. They develop and administer the certifications that validate specialized knowledge, raise earning potential, and strengthen entire industries. While the expansion took effect immediately for credentials issued by certain recognized accrediting bodies, the statute also directs the IRS to identify additional high-quality, industry-recognized credentials that should qualify. ASAE is working with Congress and coalition partners to support the full implementation of the 529 expansion and ensure that workers in every industry can access the law's full benefits.

Long-Term Reauthorization of the Terrorism Risk Insurance Act

The Terrorism Risk Insurance Act (TRIA) is a proven, bipartisan economic security program that enables private insurers to provide terrorism risk coverage to businesses, event venues, commercial properties, and other organizations that otherwise could not obtain it. Created with strong bipartisan support following the September 11, 2001 attacks, TRIA has sustained a functioning terrorism risk insurance market for more than 20 years at virtually no permanent cost to taxpayers.

Associations and their members depend on TRIA every day. The program underpins the ability of organizations across sectors, including education, healthcare, hospitality, real estate, and events, to invest in assets, host gatherings, and create jobs without bearing the full uninsurable risk of a catastrophic attack. TRIA's current authorization expires on December 31, 2027, and ASAE supports early passage of a long-term reauthorization, well ahead of that deadline, to prevent market disruptions and provide the certainty that employers and insurers need to plan for the future.