Policy Alert: 2030 Decennial Census

Proposed rules could reshape the data nonprofits rely on

In September 2026, the Census Bureau proposed two rules for the 2030 census. One would change who is counted when seats in Congress are divided among the states. The other would remove questions about race, ethnicity, and sexual orientation from the main census form. These changes could affect nonprofits and the fiscal sponsors that support them.  

Background

Census results decide how many representatives each state gets in Congress, and how billions of dollars in federal money are shared with communities for things like schools, roads, and hospitals.  

The Census Bureau published the proposed rule in the Federal Register on September 10, 2026. It adds two new parts to federal regulations, and the Bureau says each stands on its own. If a court blocks one, the other can still move forward: 

1. Who is counted. The first change affects who is counted when seats in the U.S. House of Representatives are divided among the states. U.S. citizens would still be counted, but non-citizens would be counted only if they are lawful permanent residents (green card holders). People with temporary legal status or without legal status would be left out of that count. The Bureau says it is considering using tax and other government records to determine legal status, and it is asking for public comment on whether to add a legal-status question to the census form.

2. What the census asks. The second change would bar questions about race, ethnicity, and sexual orientation on the short-form census. Questions about biological sex, date of birth, and household relationships could stay, and answers to other demographic questions would be voluntary. The Bureau says it would keep asking demographic questions on the American Community Survey, a separate survey.

Why It Matters 

Census data determines congressional representation and helps guide the distribution of hundreds of billions of dollars in federal funds. In practice, this proposal could: 

• Shift resources. Communities where excluded residents live could lose representation and funding that serves everyone there. 

• Weaken needs assessments. Less detailed race and ethnicity data makes it harder to document disparities in grant applications, especially in smaller communities. 

• Lower participation. Communities that already hesitate to respond may be even less willing if they believe their legal status could be checked against government records. 

How this impacts nonprofits and fiscal sponsors

Small projects and organizations, such as a youth program or a food pantry, often rely on the free census to show funders that their neighborhood needs help. By excluding millions of individuals from the census count, the statistical foundation would crack. Proposed changes would eliminate critical information that nonprofits use to understand and support communities. Additionally, when communities are undercounted, less federal dollars mean local nonprofits are forced to stretch their resources to cover gaps.  

TSNE’s Public Comment

TSNE has signed on to a letter organized by the National Council of Nonprofits opposing the proposed changes. The letter raises three main concerns: 

• A fair and accurate count. Excluding groups such as international students, H-1B visa holders, and undocumented people would shift political power and federal funding away from the communities where they live. 

• Public trust. An incomplete or contested count could weaken confidence in the census and how its data is used. 

• Equity and decision-making. Removing race and ethnicity questions would make it harder to identify discrimination and disparities. It would also limit the ability of nonprofits, researchers, businesses, and policymakers to make informed decisions. 

TSNE joined the letter because reliable, inclusive public data is core infrastructure for the sector. As fiscal sponsors, we see how much the projects we support rely on it. We will be tracking this rulemaking and share updates as it moves forward.