Around twenty-four states filed a lawsuit against the Trump administration on Tuesday, challenging the dismantling of AmeriCorps, a federal agency established three decades ago dedicated to volunteer service, as well as contesting the termination of substantial grant funding intended for diverse state and community initiatives nationwide.
Democratic officials spearheaded the legal challenge, aiming it specifically at the agency and its acting director. They argue that President Trump’s budget-trimming approach, carried out by the Department of Government Efficiency, unlawfully dismantled a congressionally established entity and defaulted on grant allocations earmarked through the AmeriCorps State and National program, which received $557 million in federal funding this year.
AmeriCorps is instrumental in directing significant financial resources and deploying thousands of individuals to work within communities throughout the United States.
“In their bid to deconstruct the agency, President Trump’s administration and the DOGE demolition team have abruptly slashed staff numbers and volunteer opportunities while canceling grants,” stated Phil Weiser, the Attorney General of Colorado, in a public announcement. “Our legal action aims to halt this unlawful disassembly of AmeriCorps and safeguard the ethos of volunteerism both in our state and nationwide.”
The lawsuit highlights that approximately 85% of the AmeriCorps workforce was placed on administrative leave recently. Moreover, numerous staff members were notified in the previous week about impending job losses due to workforce reductions.
In response, the White House drew attention to AmeriCorps making over $40 million in improper payments by 2024. These errors stemmed from incomplete documentation from grant recipients, miscalculations, and expenses recorded wrongly.
“President Trump possesses the legal authority to enforce accountability across the entire Executive Branch,” Anna Kelly, serving as a deputy press secretary for the White House, mentioned in her email correspondence.
AmeriCorps employs over 500 federal staff and operates with an annual budget close to $1 billion. Moreover, the organization sends out about 200,000 corps members nationwide for their service efforts. Corps members generally receive a living stipend during their service period and qualify for financial aid toward future educational pursuits or applying for select student loans.
One unique initiative within AmeriCorps, the National Civilian Community Corps, offers basic sustenance and housing for roughly 2,000 young participants during their nearly ten-month service duration. These members, who collaborate with community establishments and respond to natural calamities, were notified earlier this month about early dismissals.
Under the AmeriCorps State and National grant framework, more than $177 million was distributed by state volunteer commissions through formula-based allocations, alongside $370 million in competitive grants supporting nearly 35,000 corps members at 300 organizations, based on their May announcements.
Late Friday saw notifications being dispatched regarding the cessation of these grants, stating they no longer align with agency priorities, thus instructing grantees to immediately discontinue their efforts, according to documentation reviewed by external entities.
No longer would corps members be engaged with the program nor receive stipends.
Rachel Bruns, America’s Service Commissions’ chief engagement officer, noted the widespread impact on hundreds of millions in grants to each of the 52 state and territory volunteer commissions, excluding South Dakota which lacks a state commission. This includes territories like Washington, Puerto Rico, and Guam.
Bruns highlighted that states such as Wisconsin, Alabama, Wyoming, Oregon, and Maine reported the complete cessation of grants associated with the initiative. There was no coherent pattern or justification provided to the affected parties, as instances surfaced of the same organization experiencing disparate impacts depending on their state.
The funding cuts particularly jeopardize initiatives like after-school programs, veteran services, food banks, child abuse prevention, and home construction projects.
“There is deep uncertainty surrounding the fate of essential services in several communities affected by these cuts,” Bruns lamented.