While adult day services (ADS) continues to grow within the home and community-based services sector, questions remain as to the challenges that the industry faces and anticipates facing in the future. In this study, a national sample of ADS centers (N = 557) responded to open-ended questions regarding current and future challenges. Qualitative and quantitative analyses revealed that funding was a central concern around which a complex and interconnected constellation of challenges revolved, such as adequate staffing, marketing their services, physical space, and complicated care needs.Given the challenging economic times, these findings suggest that the continued evolution of the ADS industry depends largely on the implementation of changes in policy and funding mechanisms.