Census Proposed Rule: Implications for State Grant Funding

/ 26-22

The Census Bureau has proposed a rule that would change who is counted in the 2030 decennial census, where they are counted, and what the census asks. The proposal would:

  • Exclude certain noncitizens from the decennial count
  • Define residence as the place a person lawfully spent the most days between January 3 and April 1, evidenced by tax records, potentially affecting seasonal residents, military personnel, and people who do not file taxes
  • Scale back the types of demographic information collected

The rule characterizes the proposed changes as affecting congressional apportionment (the process of dividing the 435 seats in the House of Representatives among the 50 states), which is determined entirely by the decennial census count. However, many formula grant programs also allocate funds using census data, and nearly all of that data is built on the decennial count.

This Issue Brief summarizes the proposed changes, provides examples of how census data is used in core grant formulas, and uses the Social Services Block Grant (SSBG)—a program allocated solely by population—to illustrate how the proposal could change state funding. It also discusses potential impacts to state Medicaid matching rates.

Comments on the proposed rule are due November 2, extended from October 13.

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