A new report from the State Leadership Initiative (SLI) is raising alarms over what it calls a “shadow government” — unelected national associations that, according to the group, are embedding progressive policies into state agencies in red states without voter approval.

The SLI’s “Shadow Government” report argues that Republican leaders may win elections and appoint agency heads, but entrenched bureaucrats continue to follow the lead of powerful, well-funded national organizations. These groups, often marketed as nonpartisan professional associations, push diversity, equity, and inclusion (DEI) programs, environmental, social, and governance (ESG) investment criteria, and gender ideology into state bureaucracies.

SLI founder Noah Wall told Fox News Digital that his team reviewed 23 of the largest associations and found that DEI was “a core part of their programming,” whether the group dealt with wildlife, education, or state finances. He warned that these entities effectively set policy frameworks, provide training, and distribute funding in ways that align with progressive goals — often without direct oversight from elected officials.

Among the organizations singled out were the National Association of Medicaid Directors (NAMD), the National Association of State Treasurers (NAST), and the National Association of State Boards of Education (NASBE). The report claims NAMD placed “advancing equity in Medicaid” at the top of its reform priorities, NAST embedded DEI initiatives into treasury operations, and NASBE promoted gender-inclusive curricula and resisted restrictions on transgender participation in school sports.

One example cited was NAMD’s 2021 “Regulatory Priorities” document, which called for a focus on racial and ethnic minorities, rural populations, and other groups experiencing disparate health outcomes. In another case, Massachusetts State Treasurer Deborah Goldberg shared her office’s DEI hiring practices through NAST, touting the benefits of a “diverse workforce” and hosting ongoing DEI educational events.

While NAST told Fox News that its DEI committee was temporary and no longer active, the report insists the influence of such efforts lingers. NASBE, meanwhile, has encouraged states to issue guidance supporting transgender students, including access to facilities and the use of preferred pronouns.

Wall said Republican governors often underestimate the problem, assuming these associations are merely sharing “best practices” when they are, in fact, shaping the internal culture of state agencies. He described the influence as structural, not incidental, allowing progressive policies to advance regardless of election outcomes.

The SLI report recommends several steps to counter the trend, including:

• Auditing every association to which a state agency belongs
• Reviewing taxpayer funds spent on dues and memberships
• Withdrawing from associations that conflict with state legislative priorities
• Ending the automatic adoption of national “model policies” without in-state review
• Prohibiting public funds from being used for DEI training or related performance metrics

Wall urged Republican leaders to be more selective about sending representatives to these associations, conditioning membership on reforms and ensuring oversight by elected officials. Without such action, he warned, conservative states risk continuing to implement progressive priorities “out of habit” — and without the consent of the voters they serve.