Published on April 7, 2026, this commentary by a cross-institutional team of economists introduces the Economic Indicators Initiative (EII), a Brookings-led effort to strengthen the U.S. federal statistical system (FSS). Government statistical agencies operate at a very low cost, representing less than one-tenth of one percent of the federal budget. Despite this, they provide essential data that guide millions of decisions every day.
For example, Social Security payments depend on inflation measures. In addition, the Federal Reserve and private investors rely on these data to assess economic conditions and shape capital flows. However, the FSS faces growing threats, including chronic underfunding and political interference. The authors argue that these risks require urgent attention.
A System Under Threat
The challenges facing the FSS are both structural and political. Agency staff have worked under difficult conditions for more than a decade. Budgets have declined, response rates have fallen, and funding for modernization has remained limited. Moreover, recent developments have intensified these pressures.
Over the past year, additional budget cuts and staff reductions have taken place. At the same time, trust in official statistics has weakened. New technological challenges have also emerged, making modernization more complex.
Political interference has further complicated the situation. President Trump’s claims that Bureau of Labor Statistics data were manipulated, along with the dismissal of the BLS commissioner, contributed to declining trust. In addition, the elimination of advisory panels removed an important source of external expertise and oversight.
Eroding Trust and Its Consequences
Public confidence in official data is declining at a critical moment. While some individuals fully trust federal statistics and others reject them, most fall somewhere in between. Nevertheless, overall trust has been trending downward over time.
According to the EII’s trust analysis, rebuilding confidence requires more than technical improvements. Instead, it depends on stronger institutional safeguards and clearer communication. Governments must also engage more actively with researchers, businesses, and policymakers.
High-profile revisions to economic data can further weaken trust. For instance, large adjustments to payroll estimates may generate suspicion when agencies fail to explain them clearly.
Innovation as a Path Forward
Despite these risks, innovation provides a path forward. The EII highlights how improvements across the data lifecycle can strengthen federal statistics. Specifically, the framework emphasizes accuracy, accessibility, privacy, and usability.
Several initiatives illustrate this approach. The RESET project uses transaction-level data to improve price measurement. Meanwhile, the Census Bureau’s NEWS project integrates survey and administrative data. The Safe Data Technologies initiative applies privacy-enhancing tools to expand secure access to tax data.
Consequently, continued modernization is essential. Cross-disciplinary training and adaptive policies will also play a key role. Together, these efforts can ensure that federal economic statistics remain reliable and relevant in a rapidly changing environment.
Reference
Balu, R., Bowen, C., Congdon, W. J., Horrigan, M., Johnson, D. S., Sabelhaus, J., & Strain, M. R. (2026, April 7). Understanding the risks to economic statistics. Brookings Institution. https://www.brookings.edu/articles/understanding-the-risks-to-economic-statistics/