States including Texas, Florida, Colorado and Oregon are projected to gain seats after the 2020 numbers are in. Illinois, Ohio, New York and West Virginia are among the states expected to lose seats. An undercount could shift those projections.
Lawmakers also use census data to draw congressional district boundaries within states, an often-controversial process that can help decide partisan control of the House. Census data also underpin state legislative districts and local boundaries like City Councils and school boards.
Handing out federal and state dollars
The federal government bases a large amount of its spending decisions on census data. Researchers concluded last year that in the 2015 fiscal year, 132 government programs used information from the census to determine how to allocate more than $675 billion, much of it for programs that serve lower-income families, including Head Start, Medicare, the Supplemental Nutrition Assistance Program, Pell grants for college and reduced-price school lunch programs. Highway spending is also apportioned according to census data.
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Kiichiro Sato/Associated Press
Influencing business decisions
To sell products and services, companies large and small need good information on the location of potential customers and how much money they might have to spend. The census provides the highest-quality and most consistent information on such items, and businesses have come to depend on it to make critical choices.
Census data help companies decide where to locate distribution centers to best serve their customers, where to expand or locate new stores and where they have the best chance of seeing a high return on investment. That is why business groups have been particularly concerned about the integrity of that data.
“The 2020 census is used to help construct many other data products produced by the federal government,” said Michael R. Strain, an economist at the American Enterprise Institute who writes frequently on the importance of census data for policymakers and the private sector.
“Some of those products are heavily used by businesses when determining where to open new stores and expand operations, or even what items to put on their shelves. This affects retail businesses, for sure, but businesses in many other sectors as well,” he added.
Planning for various health and wellness programs
Low response rates from any one demographic group would undermine the validity of various population-wide statistics and program planning.
Scientists use census data to understand the distribution of diseases and health concerns such as cancer and obesity across the United States population, including drilling down to race and ethnicity to identify health patterns across demographics. Public health officials then use the data to target their interventions in at-risk communities. Inaccurate census data could lead public health officials to invest in solving a problem that does not exist — or worse, to overlook one that does.
“It’s getting harder to conduct the census, due to a variety of factors, including increasing cultural & linguistic diversity, and distrust of the government,” said Diane Whitmore Schanzenbach, an economist who directs the Institute for Policy Research at Northwestern University. “The addition of the citizenship question will make the enumerators’ jobs even harder by heightening privacy concerns and reducing participation among immigrants, who may fear the information will be used to harm them or their families.”
Gaming out Social Security
An undercount in the census could also impact forecasts about Social Security payouts, which are already increasing as a share of the federal government’s revenue.
When Congress plans for the costs of the country’s Social Security needs, lawmakers rely upon demographic projection about the population’s future: the number of children expected to be born, the number of people expected to die, and the number of people expected to immigrate. If baseline data regarding the current population are inaccurate, future projections could be skewed, causing financial challenges down the line.
