Accurate data is the foundation of effective local governance. The American Community Survey (ACS) is a yearly survey conducted by the United States Census Bureau. It collects data on the US population’s demographics, economics, housing and social characteristics.
The ACS provides critical insights that help cities, towns and villages make informed decisions about infrastructure, economic development and community services. However, efforts to weaken the ACS by making participation voluntary and reducing the data collected threatens the accuracy and availability of this essential data.
The National League of Cities (NLC) is actively advocating to protect the ACS because of its crucial role in supporting local governments.
Here are five key reasons why the ACS matters to cities:
1. It guides infrastructure and housing development.
ACS data helps cities plan for growth by providing insights into population trends, housing availability and transportation needs. Local governments use this data to decide where to build schools, hospitals, roads and public transportation systems. Without this information, communities risk over- or under-building essential infrastructure, leading to congestion, inefficiencies and wasted resources. For example, in Maryland, ACS data was used to project housing demand over the next decade and improve access to affordable housing, ensuring that new developments aligned with real-time community needs.
2. It supports economic and workforce development.
Cities rely on ACS data to shape economic policies, attract businesses and develop workforce training programs. Data on income levels, employment industries and educational attainment help local officials identify labor force trends and craft initiatives to strengthen job opportunities. For instance, if a city sees a growing number of workers in a particular industry, it can invest in relevant job training programs or infrastructure to support that sector. Likewise, businesses use ACS data to determine where to expand operations, hire employees or open new locations. Without accurate data, cities would be left to make economic decisions based on outdated or incomplete information, leading to lost opportunities for growth.
3. It determines federal funding allocation.
In the United States, ACS data is required to inform the allocation of more than $675 billion in state and federal funds that are distributed each year. More than 350 federal programs, including formula-based funding like Community Development Block Grants (CDBG), depend on ACS data to ensure that funding is allocated fairly. Programs supporting education, transportation, housing assistance and healthcare rely on accurate population and economic data to direct resources where they are needed most. Instead of receiving funding based on up-to-date needs, cities would be forced to rely on outdated decennial Census data, which does not account for recent economic shifts, migration patterns or changes in community demographics.
4. It informs local policy and public services.
ACS data helps cities craft policies that address key issues such as transportation, public safety and broadband access. For example, data on commuting patterns helps optimize traffic management and public transit routes, reducing congestion and improving sustainability. Emergency response teams also use ACS data to assess infrastructure vulnerabilities and ensure preparedness for natural disasters. Additionally, broadband access data helps identify areas that lack reliable internet, guiding investments in digital infrastructure and ensuring equitable access to online education, telehealth and remote work opportunities. Without ACS data, city leaders would lack the granular insights needed to tailor services to their residents’ evolving needs.
5. Making ACS voluntary would hurt small and rural communities.
Some policymakers have proposed making ACS participation voluntary, arguing that mandatory responses are overly burdensome for municipalities. However, we have a real-life example of what happens when data collection becomes voluntary. Canada’s experiment with voluntary census responses showed that response rates plummeted, leading to unreliable data—particularly in small and rural areas. When fewer people respond to the survey, the quality of data declines, making it less useful for decision-making.
Large metropolitan areas may still have sufficient respondents to maintain statistical accuracy, but smaller towns and rural communities would face significant gaps in data, affecting their ability to qualify for grants, attract businesses and plan for future development. Making ACS voluntary would disproportionately harm these communities, reducing their ability to advocate for resources and make informed policy decisions.
NLC Stands Up for Cities
The National League of Cities is educating our Members of Congress on why it’s so important to keep the ACS mandatory and nonpartisan so that all communities have access to accurate, up-to-date data. We recently sent a letter to Congress urging lawmakers to protect the ACS and preserve its role in local decision-making.
Reliable data is the backbone of strong cities. By safeguarding the ACS, we ensure that local governments can make informed decisions that improve the quality of life for residents across the country.
How Cities Put Census Data to Work
Explore more ways that cities use ACS data, featuring examples from communities throughout the country.
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