JUNE 14, 2023 — Today, the U.S. Census Bureau released a report estimating that more than $2.8 trillion in federal funding was distributed in fiscal year 2021 to states, communities, tribal governments and other recipients using Census Bureau data in whole or in part.

The report, Uses of Decennial Census Programs Data in Federal Funds Distribution: Fiscal Year 2021, analyzed federal assistance program spending that used Census Bureau data in whole or in part to determine how much money to allocate or eligibility for an assistance program. For the purposes of this analysis, Decennial Census Programs data include data produced by the decennial census, the American Community Survey (ACS), geographic programs supporting the decennial census and ACS, and related programs such as the annual population estimates.

The Census Bureau does not distribute any federal funding or determine funding formulas, but its statistics inform those who do, demonstrating the importance of responding to the census, ACS and other surveys. Likewise, the report identifies funding programs that use these data; it does not attempt to document how such programs do so or how central census data are to particular funding determinations.

“Responding to Census Bureau surveys and the census can make a difference in the federal funding your community receives,” Census Bureau Director Robert L. Santos said. “Your participation improves the quality of the data and the decisions that send money back to your community. The government spends trillions of dollars each year, and Census Bureau data are key to ensuring that those dollars are being used effectively and equitably.”

The Census Bureau found that at least 353 federal assistance programs used Census Bureau data in whole or in part to guide their funding allocations in fiscal year 2021. Among them, the 20 largest programs accounted for about 90% of the total federal funds distributed in fiscal year 2021 based on Census Bureau data. This included more than $700 billion for COVID-19-related programs.

Some of the top programs funded health care, nutrition, highways, housing, school lunches, child care and COVID-19 assistance. All together, these programs benefited a wide variety of people, including children, adults 65 and older, unemployed workers, people with disabilities, families who needed child care assistance, people who used public transportation and people who needed housing assistance.

The new funding estimate and report was produced in consultation with Andrew Reamer of the George Washington Institute of Public Policy at George Washington University and author of Counting for Dollars 2020: The Role of the Decennial Census in the Geographic Distribution of Federal Funds.

“The Census Bureau's new, more comprehensive report shows that an accurate decennial census is critical to the fair distribution of federal nondefense spending,” Reamer said.

The report focuses on the following types of federal assistance: formula grants, project grants, direct payments for specified use, direct payments with unrestricted use, direct loans, guaranteed and insured loans and insurance. Specifically, the Census Bureau analyzed programs required by law to use Census Bureau data or a data element, such as “children under the age of 13” or “per capita income,” that could be reasonably assumed to come from the Census Bureau’s trove of statistics.

A variety of other financial benefits use Census Bureau data but are not captured in the $2.8 trillion figure. For example, Census Bureau data guide criteria formulation for certain tax credits, a percentage of federal contract awards and regulations for business and home mortgage lending. More information about these types of uses of Census Bureau data is available in the report’s appendix.

Additionally, many grant writers may use Census Bureau data in their proposals, but the grant awards only counted toward the funding in this analysis if the data were required for the application.

“Informing federal funding is just one of the many benefits of Census Bureau data,” Santos said. “Our data also nurture our democracy, inform decisions and promote our nation’s economy. The data provide a tool for evidence-based decision-making in government, communities and industry, which builds confidence in the government and the economy.”

Among the many benefits of Census Bureau data, census results determine how many congressional seats each state receives and provide data for redrawing legislative districts. The ACS provides a more detailed, annual portrait of communities across the nation. Communities use Census Bureau statistics for planning services such as schools, roads, hospitals, job training centers and health care for older adults. Businesses use Census Bureau statistics to help decide where to open stores, offices, shopping centers, manufacturing plants and more.

Official census counts – along with ACS estimates – are also used to help compliance with voting rights and civil rights laws, to determine the sampling frames for dozens of surveys throughout the U.S. federal statistical system, and act as controls to produce important demographic and economic models and indexes.

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