Trump Administration Proposes Budget Cuts to Key US Statistical Agency
The Bureau of Labor Statistics (BLS), the US agency responsible for tracking the nation’s economic health, could face additional funding and staffing reductions under the Trump administration’s latest budget proposal, Bloomberg reports.
The proposal calls for an 8% cut to both funding and personnel for the BLS in the upcoming fiscal year, further intensifying pressure on a statistical body already navigating years of constrained resources.
If implemented, the cuts would likely force the BLS to scale back its data collection efforts, narrowing its focus to core reports such as the monthly employment summary and the consumer price index (CPI). While these headline figures remain a priority, even they are showing signs of strain. Due to staffing shortages, the agency has already begun reducing the number of survey outlets for the CPI and has halted data collection in several cities, including Buffalo, New York, and Lincoln, Nebraska.
The proposed reductions are part of a broader effort by the Trump administration to streamline the federal government, with many agencies being asked to do more with less. However, experts warn that diminishing the capabilities of federal statistical bodies could weaken the reliability and comprehensiveness of economic data used by policymakers, investors, and researchers around the world.
A recent budget document from the Department of Labor acknowledged the need to reallocate resources toward key economic indicators, but also made clear that programs not explicitly mandated by law may be scaled back or eliminated.
Adding to the challenge, lower survey participation rates in recent years have increased the cost and complexity of collecting accurate data. This trend, coupled with reduced funding, risks limiting the scope and quality of reports long considered global benchmarks.
These potential changes come at a time when US economic data is under intense scrutiny. Uncertainty surrounding tariffs, inflation, and interest rates has heightened demand for timely and reliable figures. As recent research from the New York Federal Reserve shows, tariff-related cost increases have already impacted business profits and hiring decisions, making accurate economic indicators all the more critical.
