Trump's latest move against data may make America's future foggier

In a time of great economic uncertainty, President Donald Trump’s administration quietly took a step last week that could create even more: Secretary of Commerce Howard Lutnick disbanded the Federal Economic Statistics Advisory Committee.

I realize that the shuttering of an obscure statistical advisory committee may not strike anyone as a scandal, much less an outrage. But as an economist who has presented to the committee, known as FESAC, I know how it improved the information used by both the federal government and private enterprise to make economic decisions. Most Americans do not realize how many aspects of their lives rely on timely and accurate government data.

One of FESAC’s official responsibilities was “exploring ways to enhance the agencies’ economic indicators to make them timelier, more accurate, and more specific to meeting changing demands and future data needs.” In the complex and highly dynamic US economy, this is an ongoing effort — not a one-time task that has been “fulfilled,” which was the Commerce Department’s stated reason for terminating the committee.


The 15 members of the advisory committee, who were unpaid, brought deep technical expertise on economic measurement from the private sector, academia and the non-profit world. They were a sounding board for the Census Bureau, Bureau of Labor Statistics, and Bureau of Economic Analysis, which produce much of the nation’s official statistics.

If statistics fail to keep up with the changing economy, they lose their usefulness. When the committee last met in December, one focus was on measuring the use and production of artificial intelligence. Staff from the agencies shared existing findings on AI, such as from the Business Trends and Outlook Survey that began in 2022, and outlined new data collection efforts. AI’s current use among businesses has nearly doubled since late 2023, and even more businesses expect to adopt AI in the next six months.

The committee was asked what data products would be most useful. Expert feedback, including a request to harmonize the definitions of AI across surveys and align with cutting-edge research, is especially valuable at the early stages of data collection. The growth and employment effects of AI are among the most pressing questions facing the economy, and external experts are crucial to supporting the creation of high-quality data.

Enhancing official economic statistics under budget constraints often requires creative approaches. At its meeting last June, the committee discussed using private-sector data to create statistics on regional employment and other outcomes. There is considerable demand among businesses and local governments to have timely geographic detail, but it is cost-prohibitive with current government surveys. Members of FESAC, some of whom work at companies like Indeed and JP Morgan Chase, offered first-hand knowledge of the pros and cons of using private-sector data.

The committee contributed far more than just twice-a-year meetings. It also created relationships with the private sector that government agencies could draw on as part of their continuing effort to improve their statistics.

The National Academies of Sciences, in discussing best practices for statistical agencies, argues that external advisory committees are a good way to engage with users of the data and obtain expert advice. Moreover, external evaluation should be part of regular program reviews to ensure quality, relevance and cost-effectiveness. That’s exactly what FESAC did.

The statistical agencies need more, not fewer, resources now to meet their challenges. During the campaign, Trump repeatedly questioned the credibility of US employment statistics. In particular, he claimed that the downward revisions of monthly payrolls showed political interference. Senators Bill Cassidy and Susan Collins asked the Bureau of Labor Statistics to explain why large revisions were happening and how to avoid them. FESAC could have been a valuable resource for possible improvements.

Disbanding FESAC does not advance the administration’s goal of greater efficiency in the government. In 2024, the committee's cost was expected to be a modest $120,000, covering travel expenses and minimal staff support. Virtual-only meetings could have reduced those costs still further, if that was a concern. Regardless, the benefits to the millions of data users from regular reviews by external experts far exceed that negligible cost.

Putting a low-cost, high-value committee on the chopping block does not bode well for other investments in the official statistics. Reductions in staff and budget would likely degrade the quality of the official statistics. Even before Trump took office, all three agencies operated in a tight budget environment.

Reduced transparency in official statistics is perhaps the most troubling aspect of disbanding FESAC. Cutting off agency staff from external advisers creates an environment where political interference could occur much more easily — and go undetected. With political officials such as Lutnick arguing publicly that GDP should exclude government spending, it is especially important to have external, independent experts.

And FESAC is not alone. By executive order, the administration is ending several advisory committees in the federal government, reducing transparency and the technical resources for agencies. It’s a short-sighted approach that could undermine essential government services.