Aging Populations and Regional Economic Development:
Insights from the 2025 NADO & DDAA Washington Conference

Population aging is rapidly transforming regions across the country and increasing the need for, and diversity of, support programs for older adults and their caregivers. At the 2025 NADO Washington Policy Conference, a session titled Aging and RDOs: What’s Changing and What’s Ahead brought together experts to discuss how Regional Development Organizations (RDOs) and Economic Development Districts (EDDs) can adapt to these shifts. The panel featured Annette Gutierrez, Executive Director of the Rio Grande Council of Governments, Sandy Markwood, CEO of USAging, and Brendan Flinn, Director of Long-Term Services and Supports at the AARP Public Policy Institute. Each offered a unique perspective on aging trends, policy implications, and strategies for integrating aging into economic development planning. Their insights underscored both the challenges and opportunities associated with an aging society, particularly for regional leaders working to support economic resilience and social well-being.

Many RDOs function as Area Agencies on Aging (AAA) for their regions or work closely with their region’s AAA. Moreover, aging is increasingly recognized as a major topic for regional economic developers. The recent NADO publication Older Adults and Economic Development: Planning for an Aging Population discusses this trend and includes tips for including aging as a topic in the CEDS and other planning efforts.

Key Takeaways
  1. Demographic and Economic Trends in Aging

The panelists highlighted the rising costs of aging-related services, noting that home care and nursing home care are becoming increasingly unaffordable due to inflation and workforce shortages. AARP research has found that the cost of home care has risen faster than other major expenses like food and energy, posing a significant financial challenge for families.

On a positive note, there is growing recognition of the role of social care alongside medical care. The panelists emphasized that most healthcare occurs not in hospitals but in homes and communities. Networks of AAAs are expanding services to address care transitions, home care, nutrition, and transportation. Additionally, multisector state aging plans are bringing together diverse stakeholders, including economic development professionals, to address aging as a broad societal issue. Panelists recommended that RDOs and AAAs get involved with these state planning processes.

However, challenges persist, including social isolation among older adults and caregivers, as well as funding gaps for services.

Gutierrez shared that her region is struggling with a wages/services challenge: paying higher wages makes it easier to hire care workers, but reduces the number of people her programs can serve. She also noted a shift toward seeking support from localities and philanthropic organizations to fill funding gaps and recommended that attendees consider similar approaches.

  1. Policy and Funding: The Future of the Older Americans Act (OAA)

One major topic was the ongoing efforts to reauthorize the Older Americans Act (OAA), a crucial source of federal funding for aging services. Markwood outlined several key wins that could come out of reauthorization, including streamlined contracting processes for AAAs, an expansion of evidence-informed programs, codification of grab-and-go meal programs, and increased funding levels for five years. However, she emphasized that it is a significant concern that the act is not currently authorized. She urged attendees to share stories with policymakers that demonstrate the critical role the OAA plays in supporting communities.

Gutierrez emphasized that aging policy affects everyone—not just older adults today, but also their caregivers and communities, as well as future generations who will face these same challenges.

  1. Preparing for Potential Funding Cuts: Strategies from the Field

Given potential funding uncertainties, the panelists discussed proactive strategies for maintaining essential aging services. As mentioned previously, Gutierrez shared that her organization is strengthening partnerships with local governments, nonprofit funders, and healthcare providers to diversify financial support. Exploring private pay models and innovative contracting mechanisms are also key strategies.

Should funding cuts materialize, panelists emphasized, prioritizing essential programs—such as meal delivery services—is critical to safeguarding support for the most vulnerable older adults.

  1. Integration of Aging Issues into Economic Development

The discussion underscored the importance of breaking down silos between aging services, economic development, and other sectors. Older adults interact with a range of systems—including transit, housing, and workforce development—which must be better coordinated to meet their needs.

Housing was identified as a particularly pressing issue, with Markwood noting that adults over 50 are the fastest-growing segment of the homeless population. Economic development strategies must include efforts to keep older adults engaged in the workforce, whether through flexible employment options, reskilling programs, or entrepreneurship support.

Flinn also emphasized that state and local leadership play a vital role in integrating aging into broader planning efforts. States with multisector aging plans are making significant progress, and local governments should follow suit by convening cross-sector discussions on aging. As natural conveners, RDOs and EDDs are well-positioned to participate in those discussions.

  1. Workforce Challenges and Innovations

While Rio Grande COG has not experienced a mass exodus of workers post-COVID, workforce retention remains an ongoing challenge due to pay disparities and job demands. Gutierrez highlighted strategies such as building relationships with university social work programs, strengthening ties with workforce development organizations, and advocating for state policy changes that support wage increases as potential solutions for workforce challenges.

Markwood pointed to an innovative model from Michigan where an emergency fund for direct care workers reduced absenteeism by 80%, illustrating how strategic investments can improve workforce stability.

  1. Supporting Caregivers

Caregivers provide an estimated $600 billion in unpaid care annually in the U.S., making them a critical yet often under-supported component of the aging services ecosystem. Markwood pointed out that live-in caregivers provide an average of 40 hours of care per week, while those who live separately contribute around 20 hours. The National Family Caregiver Support Program—administered by AAAs—is severely underfunded, despite being the only large-scale federal program dedicated to caregivers.

Both Markwood and Flinn emphasized the importance of advocating for increased funding and exploring policy solutions such as caregiver tax credits. Educating caregivers about available services before they reach a crisis point is another key priority.

  1. New Ideas and Innovative Programs

The session concluded with a discussion of emerging models and innovative solutions in aging services. Gutierrez again encouraged RDOs and AAAs to explore partnerships with non-traditional interests as a means of securing additional funding. One example shared was a collaboration between an AAA and a local restaurant to provide meal services in areas without existing congregate meal facilities.

Flinn highlighted a new Medicare policy that allows Part D clinicians to be reimbursed for training caregivers—a promising but underutilized opportunity. Markwood shared examples of efficiency-focused initiatives, such as Oregon and Massachusetts’ statewide coordination of evidence-based programs, which enable rural AAAs to share resources rather than duplicating efforts. Michigan’s centralized longevity services center, created through partnerships between universities and nonprofits, was another successful model.

Conclusion

Aging is no longer a niche issue—it is a defining challenge for regional economies and community development. The insights from this conference session reinforced the need for RDOs to take an active role in integrating aging into economic and workforce planning. Policymakers, funders, and practitioners must work together to ensure that aging services remain financially sustainable and responsive to evolving needs.

One major theme from the session was the importance of advocacy. As the policy landscape evolves, RDOs should continue to communicate the value of the Older Americans Act and related programs to legislators, making aging issues tangible and relevant to decision-makers. By fostering partnerships, embracing innovation, and elevating the conversation around aging, communities can create more inclusive and resilient economies for all generations.

For more information, contact NADO Program Manager Dion Thompson-Davoli  

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