Americans are wholeheartedly into spending time outdoors, and the economy, at least until not too long ago, was fond of it.
The business of the American outdoors has transformed from a pursuit for the daring to a genuine economic powerhouse, which in 2024 resulted in $1.3 trillion in economic output and sustained 5.2 million jobs, as per figures released last week by the Bureau of Economic Analysis (BEA).
But that was two years back. Although figures for 2025 won’t be released until later this year, the outdoor recreation industry was among those in the line of fire of President Donald Trump’s extensive cost-cutting plan. Through targeted budget and staffing cuts, the administration drastically reduced funding for various agencies involved in the outdoor economy, such as the National Park Service, the Bureau of Land Management, and the Forest Service.
Experts state that those cuts, along with mass staff departures and the breakdown of visitor management systems, have put the outdoor economy on a far more arduous path. This situation could bring about punishing trickle-down effects for small businesses and residents who depend on people wanting to experience the great outdoors, as the economic engines driving large portions of rural America are being gutted.
“Numerous local businesses have developed an entire economic development strategy linked to outdoor recreation and access to public lands,” Megan Lawson, an economist at the independent research group Headwaters Economics, told .
“She mentioned, ‘These cuts to the public sector mean there’s a very real risk that they will also pose a threat to all these private sector businesses.'” she said.
A trillion dollar success story
According to BEA data, in 2024, outdoor recreation made up 2.4% of the U.S. GDP, as Americans flocked to trails, waterways, and campsites in record numbers. In fact, that year, U.S. national parks had a record number of visitors.
That growth tale was more significant in certain states than others. In rural states like Montana, Wyoming, and Vermont, outdoor recreation contributed to at least 4.7% of GDP. In Hawaii, where outdoor recreation was most prominently reflected in GDP, it accounted for a staggering 6.1% of economic output and 51,000 jobs, nearly 8% of the state’s employed workforce.
The BEA calculates the outdoor recreation economy in a comprehensive manner, encompassing everything from the economic output from renting a mountain bike for a day to the impact of an outdoor concert. But access to America’s great outdoors is an economic force in itself. According to the National Park Service, in 2024, national parks alone accounted for $56.3 billion in output, 340,000 jobs, and $29 billion in receipts for local gateway regions. Last year, outdoor recreation on public lands and waters added an average of $351 million to the economy daily, as per the Outdoor Recreation Roundtable, an industry group.
Lawson stated, ‘That spending tends to be a lifeline for local economies.’ According to a 2017 report from Headwaters Economics, proximity to federally managed lands is also likely to be an indicator of better economic health. It found that rural counties in the West with more plots of federal lands had faster growth in population, employment, and income compared to counties with smaller shares of such lands.
“Cassidy Jones, a program manager at the non-profit National Parks Conservation Association, said, ‘2024 is a really interesting starting point. It was a year with record visitation to America’s national parks, which really shows how much people adore these places.'” told .
Interest in national parks and the outdoors has soared since the pandemic, breathing new life into many once-sleepy towns across the country. The high visitation numbers have stretched resources in some communities grappling with overtourism, but for small businesses like hotels, tour operators, and gear providers, America’s love for the outdoors has been an economic boon.
Hitting the brakes
But the momentum of 2024 came to a halt soon after Trump returned to the White House. In its initial days, the administration swiftly moved to reduce the federal presence, including agencies managing America’s public lands. In February 2025, on a day some employees later called the ‘Valentine’s Day massacre,’ 1,000 probationary workers were fired from the National Park Service in one of the administration’s first major actions.
By summer, the Park Service had lost 24% of its permanent workforce due to a combination of forced resignations, buyouts, and a strict hiring freeze. The administration’s original 2026 budget proposal would have been an even bigger blow, calling for a $1.2 billion cut to the National Park Service—more than a third of its entire budget. Although the proposal was rejected by Congress in January, last year’s cuts still weigh on a national parks system that is understaffed and overworked, and visitors are likely to notice.
“Jones said, ‘If you start with 25% fewer staff, you won’t get the same park experience. You won’t get the same offerings and programs about these places that should be available, but now simply won’t be because of the lack of staff.’”
The consequences for local economies could be severe, even for those not directly employed by the government. According to a 2023 study, parks can significantly and immediately boost local employment, finding that within four years, park designation can trigger an up to 6% increase in incomes and a 4% boost to employment in neighboring counties.
“Lawson said, ‘It’s a matter of existence. I don’t think we can overemphasize the dependence of these small businesses in gateway communities on visitors to national parks.’”
Even though Congress rejected the Trump Administration’s larger budget cut proposal, 2026 is expected to be another tough year for the outdoors and the businesses that depend on it. Lawson said that visitation in many respects relies on marketing and the image parks can convey, but the less-than-great narrative around America’s outdoors over the past year is beginning to manifest. The Service announced this week that national parks had 323 million recreational visitors in 2025, nearly 9 million fewer than in 2024.