Trump Administration Accused of Illegally Withholding AmeriCorps Funds, Maryland and 22 States Sue

Per a press release from the Maryland Attorney General’s Office, a coalition of 23 states and two governors has filed an amended lawsuit against the Trump administration, alleging the illegal withholding of over $38 million in AmeriCorps funding. The legal action targets the White House Office of Management and Budget (OMB), now officially named as a defendant for its continued refusal to release funds, despite a previous court order requiring restoration of support for service programs.

Attorney General Anthony G. Brown, who co-led the lawsuit, argued that OMB’s actions threaten the survival of vital community service initiatives, including those that support Maryland’s public schools, senior care, housing programs, and environmental restoration. Last month, the coalition secured a court ruling that reinstated hundreds of AmeriCorps programs unlawfully canceled earlier in the year. However, the administration has since withheld millions in designated funding streams, including $5 million allocated for training and technical support and another $33 million in competitive grants for the upcoming service year.

AmeriCorps, a federally funded volunteer agency, places over 200,000 Americans annually into community-based roles across the country. In Maryland alone, the agency supported nearly 5,000 volunteers with more than $21 million in funds and education awards last year. The freeze in funding now jeopardizes the sustainability of local programs like ASTAR at Frostburg University, which had only recently been restored after prior termination.

The amended lawsuit claims OMB’s actions violate the Administrative Procedures Act and the U.S. Constitution’s separation of powers, noting that Congress—not the executive branch—controls federal appropriations. By continuing to block funds, the lawsuit asserts, the administration is sidestepping both legislative authority and the judiciary. With programs already under pressure, advocates warn that communities in Maryland and across the nation could lose essential services unless the funds are released.

The suit was filed with the support of attorneys general from 22 additional states and the governors of Pennsylvania and Kentucky, marking one of the most extensive legal coalitions formed in defense of AmeriCorps programs to date.

Article by multiple contributors, based upon information from the Maryland Attorney General’s Office

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