The American Community Survey (ACS) is part of the Decennial Census Program. The Bureau randomly selects about 3 million addresses each year to participate in the survey. These data previously were collected only in census years in conjunction with the decennial census. Since the ACS is conducted every year, rather than once every ten years, it will provide more current data throughout the decade.
The ACS:
You can find fact sheets on the ACS website that explain why the Census conducts this survey and asks each question on the survey.
Since its beginning as a test in the late 1990s, the ACS has evolved to replace the census sample questionnaire (the "long form") that was sent out until 2000 to roughly one out of six households (a 17% sample).
ACS collects data monthly from roughly 250,000 households (3.54 million each year) across the nation, a 2.3% sample (about one in 50 households) over a year or 11.5% over five years (roughly one in nine).
The annual ACS budget is about $250 million, and even a five-year cycle is a real bargain compared to a full census with sample questionnaires.
The good news for students and researchers is that the data is more up-to-date (and costs less to get).
The bad news is that the ACS data has a much higher sample error, so it's less reliable and has a much higher margin of error — sometimes the margin of error is higher than the actual estimate.