While eliminating the census is problematic -- simply because it is mandated by the constitution -- the 70 item ACS send to 3.5 million homes annually is perhaps in greater trouble. This study is the replacement to the old long-form census questionnaire, and is used to allocate almost $500 billion in federal program dollars. The proposed director of OMB is not a fan of the ACS; he voted to defund the study in the past.
I know that in my work I have often used census and related data from the Department of Commerce to conduct analyses to assist my clients. Defunding these efforts is not, in my opinion, a prudent step.
For more information see the original article in Science magazine.