Federal Statistics in Crisis: What Research Organizations Need to Know

The bottom line:  America's 13 principal statistical agencies are losing staff, funding and public trust — threatening the data infrastructure that research institutions and policymakers depend on for critical decisions.

WHY IT MATTERS

Federal statistical data forms the foundation for evidence-based policy across government levels. "These statistical agencies are essential infrastructure," said Nancy Potok, CEO of NAPx Consulting and former Chief Statistician of the United States on a recent Federal News Radio podcast. "There are so many critical decisions made based on federal statistical data".

For research organizations that partner with these agencies or policy makers rely on federal data for evaluation work, the deterioration threatens both contract pipelines and research quality.

BY THE NUMBERS

• 20-30% staff losses across most statistical agencies in the past year

• 57% to 52%: Public trust in federal data dropped in just four months (June-September 2025)

• 3 people remained at the National Center for Education Statistics after Department of Education downsizing

THE RIPPLE EFFECTS

Current operational impacts:

• Census Bureau canceled scheduled field operations due to insufficient staff

• Years of recruiting data scientists lost when new hires on probation were laid off

• Senior staff with institutional knowledge took early retirement, creating knowledge gaps

Quality degradation: Declining public trust is driving down survey response rates, directly affecting data quality. Federal Reserve officials have expressed concern about Bureau of Labor Statistics reliability as it feeds into interest rate decisions.

WHAT RESEARCH INSTITUTIONS SHOULD WATCH

The 13 principal statistical agencies span Commerce (Census Bureau, Bureau of Economic Analysis), Labor (BLS), HHS (National Center for Health Statistics), Energy (EIA), and more. Each sits under different appropriations subcommittees, complicating oversight and advocacy.

"They're doing a lot of stuff they don't need to do, but they don't have the leverage to stop doing those things," Potok explained about the system's inefficiencies.

THE PATH FORWARD

The American Statistical Association's latest assessment recommends a strategic modernization approach rather than simply requesting more funding. Key elements include:

• Stronger Chief Statistician position with enforcement authority

• Technology innovation fund for modernization research

• Public-private partnerships bringing research institutions and academia into heavy-duty research on statistical modernization

• Legislative muscle to drive coordination across the decentralized system

The opportunity:  Research organizations positioned at the intersection of survey methodology, data science, and federal evaluation could play a crucial role in the proposed modernization partnerships.

Between the lines:  Without congressional champions who understand statistical agencies' role in the broader data ecosystem, the infrastructure will continue deteriorating. Potok noted that unlike past eras with strong data advocates, current congressional focus on open data and AI hasn't translated to statistical agency support.

What it means for govcon: While AI may be able to process publicly available data, we still need to measure and evaluate programs, protect personally identifiable information, and disseminate state and national level data to inform policy makers.  Without accurate data as a baseline, policy will be made without a factual foundation, outcomes not fully understood, and taxpayer monies wasted.

In short, it’s a cliché – or three:

Let’s not be pennywise and pound foolish.

Organizations manage what they measure.

We should fund more of what works.

Link to the Fed News Radio story cited above: https://federalnewsnetwork.com/podcast/federal-drive-with-terry-gerton-podcast/americas-data-system-is-losing-staff-funding-and-trust/