Trump’s Second Term Ushers in ‘Sea Change’ in Workforce Policy

President Donald Trump’s second term is off to a quick start, with wide-ranging presidential actions that will shape the U.S. workplace and impact HR. 

Emily M. Dickens, J.D., SHRM chief of staff, head of government affairs, and corporate secretary, led a webinar discussion March 5 with two former members of Congress on the new administration’s key policy shifts and their implications for HR and business leaders. 

“This past 50 days has been a whirlwind,” Dickens said. “Since Inauguration Day, we’ve seen a fast-moving agenda of executive orders, regulatory changes, and legislative priorities that will shape how HR professionals and business leaders attract, retain, and manage talent. With the president’s first joint address to Congress, we now have a clearer picture of the administration’s vision for jobs, workforce development, and the economy.”   

Rodney Davis, head of government affairs at the U.S. Chamber of Commerce in Washington, D.C., said “there is going to be a sea change” when it comes to the relationship between government and the workplace. “Frankly, I think that’s good for employers,” said Davis, a Republican from Illinois who served in the House of Representatives from 2013 to 2023. “It will be less about the government telling you how you should run your HR departments and rather you running your departments in a way that is more beneficial to you and your customers. That is not a bad direction to go in.” 

Cheri Bustos, a partner at public affairs and lobbying firm Mercury, noted that Trump has only been in office seven weeks, so while there hasn’t been much in the way of legislative change, his flurry of executive orders has impacted the workforce. 

That has especially been the case with the federal workforce, said Bustos, an Illinois Democrat who served in the House from 2013to 2023. “Some of these actions are being challenged. Some may have lasting effect if the measures are passed by Congress,” she explained. 

Bustos said that based on the president’s early priorities, HR should be prepared to have discussions around issues such as return-to-office policies, inclusion and diversity, and merit-based hiring. “You don’t have to sacrifice diversity to have the best workforce,” she said. 

Davis said the “onslaught of executive actions” that were issued during his tenure in the House was very frustrating, and “that’s where we still are today.” 

The second Trump administration has issued a record number of executive orders — 81 as of March 6, compared to 77 issued by then-President Joe Biden in all of 2021, his first year in office. Trump signed 55 executive orders the first year of his first term, while then-President Barack Obama issued 40 in 2009, his first year in the White House. 

Legislative Aims 

A major priority for Republicans in Congress, Davis said, is reauthorizing the 2017 Tax Cuts and Jobs Act, which reduced tax rates for corporations and individuals while increasing the standard deduction and family tax credits.   

“Many provisions in the tax code can be beneficial when it comes to workforce development, hiring, and retention,” he said. “Every employer has to understand how to use the tax code to ensure they get access to the best workforce they can.”    

In addition, Bustos said the U.S. is in desperate need of comprehensive immigration reform.  

Davis agreed, saying a serious discussion on immigration is needed. “Commonsense immigration reform can make our legal immigration system work better, faster, and less costly,” he said. “But immigration reform is the new third rail in American politics.”  

In the meantime, HR should focus on immigration enforcement and I-9 audits, Dickens said.  

“Have a policy in place in case you receive a visit from ICE [Immigration and Customs Enforcement],” she advised. 

Workforce Development     

Davis said he would like to see Democrats and Republicans on Capitol Hill come together to get U.S. workers who are sitting on the sidelines incentivized to rejoin the labor force.  

“There are too many people who have not been working for many years,” he said.  

Bustos agreed that both parties want people working. “If we can get people back to work and address the skills gap, I think that is very positive,” she said.  

Every session of Congress produces “good legislation” around workforce development, Bustos added. “Some of it is through community colleges; some of it is through the trades and unions,” she said. “The SHRM Foundation has done a great job of going after workforce development grants.” 

Dickens said the nation’s education-to-employment pipeline is broken and more investment is needed so students and workers can develop the skills they need to succeed in the 21st century.     

“SHRM has been talking about this for years,” she said. “There will be more required of you [employers] to get students to a point where they can work for you.” 

What’s Next

Bustos said the next thing to keep an eye on is the threat of a government shutdown. Current funding expires at midnight March 14. A continuing resolution bill is expected to be passed, keeping federal agencies running at their current funding levels through September. 

Another thing to follow is the Senate’s vote on whether to confirm former Rep. Lori Chavez-DeRemer, R-Ore., as U.S. Labor secretary.  

Bustos added that leadership staffing at the federal agencies most relevant to employers and workers is ongoing. “The org chart is starting to get filled in,” she said.