Coalition Secures Settlement to Protect AmeriCorps Funding and Operations

A coalition of 23 state attorneys general and two governors has secured a settlement aimed at preventing the Trump administration from making abrupt and substantial cuts to AmeriCorps, the nation’s largest volunteer service program. The agreement resolves a lawsuit initiated in response to repeated attempts to significantly reduce or eliminate the program’s funding and operations. This legal action previously led to the reinstatement of nearly $400 million in terminated AmeriCorps programs and the release of over $184 million that had been withheld. The settlement is designed to safeguard AmeriCorps funding and the service of its members for Fiscal Year 2026.

In Maryland alone, the cuts that were challenged by the lawsuit had put more than $14 million in AmeriCorps program funds at risk. AmeriCorps plays a vital role in supporting community service initiatives by funding and deploying volunteers to organizations addressing critical local needs across the country. In Maryland, these volunteers contribute to various essential services, including teaching in public schools, building and renovating homes in Baltimore City, preserving state parks and conservation areas, and assisting low-income, homeless, and elderly individuals in rural Western Maryland and on the Eastern Shore.

Under the terms of the settlement, AmeriCorps has committed to avoiding mass terminations of grants, significant reductions in unionized staff beyond previously planned actions, and large-scale dismissals of service members during Fiscal Year 2026. Should any of these actions, or a material alteration in how volunteer services are delivered, be contemplated, AmeriCorps must provide the coalition states with at least 30 days’ written notice. This notice must also specify the legal basis for such a change, allowing the coalition states the opportunity to respond.

Furthermore, AmeriCorps has agreed to allocate substantially all of its Fiscal Year 2026 funding by September 30, 2026. The settlement also mandates that the National Civilian Community Corps (NCCC) and AmeriCorps VISTA programs will be administered in accordance with their governing federal statutes. The current terms of service for participants in these programs are protected and cannot be disrupted except under specific, lawful conditions outlined in the settlement. The litigation, which began in April 2025 following proposals to cut the AmeriCorps workforce by nearly 90%, cancel contracts, and close $400 million in programs, will be paused until February 1, 2027. At that point, the case will be voluntarily dismissed without prejudice, provided AmeriCorps adheres to its commitments. The coalition reserves the right to resume litigation if non-compliance is detected.

The coalition, co-led by the Attorneys General of Maryland, California, Colorado, and Delaware, includes a broad representation of states and governors committed to protecting national service programs.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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