Proposed Federal Budget Signals Cuts to Core Economic Data Capacity
The FY 2026 Budget Appendix includes staffing shifts across the three federal agencies most critical to economic and labor market intelligence: the U.S. Census Bureau, Bureau of Economic Analysis (BEA), and Bureau of Labor Statistics (BLS). These changes may have serious implications for the quality, timeliness, and availability of the data that state and local leaders rely on every day.
BLS Budget Would Move and Shrink the Agency in the Face of Increased Demand for Labor Data
The headline budget proposal is at BLS where the President’s proposal would move the agency from the Department of Labor. Already co-located with Census and BEA, this proposal would cement a proposal first introduced during the Obama Administration of aligning all three agencies under one Undersecretary’s office at the Department of Commerce. This represents a huge lift because Congressional oversight agencies for BLS are different than those at Commerce. Furthermore, many of the legal statutes governing the agency and its data management systems are distinct from Commerce. This would require significant legislative changes well outside the budget process.
Still, the President’s budget proposal would reduce BLS staffing from its current authorized level 2,175 to 1,999 FTEs—a decline of 8%. At a time when communities are asking for more local labor market data to plan for workforce transitions, identify talent gaps, and support employer engagement strategies, cuts of this magnitude could limit BLS’s ability to respond to growing demand for substate and real-time labor market intelligence. All three agencies have been clear that their first focus is on national data to produce the Principal Federal Economic Indicators (PFEIs), a set of key statistical series used to monitor and assess the current state of the U.S. economy. Many of BLS’s cooperative state programs contribute to these indicators, but key popular programs like the Occupational Employment and Wages Statistics do not, meaning that they could become vulnerable to resource constraints.
BEA Faces Deep Reductions
If the President’s budget were approved, BEA would see the sharpest drop in total staff (17%), from 488 to 406 FTEs. This level of reduction raises questions about the agency’s capacity to maintain the integrity of the national income and product accounts, regional GDP data, and supply chain analytics—especially as new users depend on this information to navigate economic disruptions. BEA has already announced some changes to its local data programs as a result of past budget decisions and staffing losses.
At the Census Bureau: A Shift Toward Reimbursable Work
The Census Bureau’s overall staffing situation is a bit more complicated. In fact, the budget proposal would allow for slight growth in headcount from 8,408 to 8,637 full-time equivalent (FTE) positions. This change, however, would be driven entirely by an increase in reimbursable projects. That modest gain masks a decline in the core workforce responsible for the agency’s most vital functions. Staff supporting current and periodic surveys would drop by 2%, from 5,862 to 5,744 FTEs. Meanwhile, reimbursable positions would grow from 2,546 to 2,893. It is likely that these cuts could mean the end of some specialty surveys although the agency is committed to maintaining the quality and reliability of the decennial census and American Community survey. These trends reflect a growing reliance on short-term, externally funded efforts—at a time when consistent, high-quality federal data programs are more important than ever.
For all three agencies, actual staffing may be even lower than projected due to early retirements, voluntary separations, and a hiring freeze that has made it harder to retain experienced analysts and technologists. Agency leaders are already grappling with staffing levels that have declined by 10-20 percent since late 2024.
Why This Matters
Federal statistical agencies provide the foundation for evidence-based policymaking in economic development, education, workforce, and infrastructure investment. These proposed reductions, particularly those affecting core programs, could make it harder for public and private leaders to track progress, identify needs, and make informed decisions. They also raise concerns about the long-term health of the nation’s statistical infrastructure.
C2ER will continue to analyze the implications of these proposals and work with partners to ensure that federal data resources remain strong, consistent, and accessible for the communities that depend on them.
Read the FY 2026 Budget Appendix here. These data points are pulled primarily from pages 192-196, 662-663 of the Appendix to the President’s FY 2026 Discretionary Budget Request released on 5/31/2025.