In a sweeping move to restructure a legacy program from the Clinton era, the Trump administration has placed nearly three-quarters of AmeriCorps’ full-time employees on administrative leave, effectively sidelining the majority of the federal volunteer agency’s workforce.
A source within the administration told Fox News Digital that 535 out of AmeriCorps’ 700 full-time staff were put on leave as part of a broader effort to downsize the federal government. The action marks a significant step in what appears to be a plan to overhaul—or possibly dismantle—the agency.
In the days leading up to the staff reduction, members of AmeriCorps’ National Civilian Community Corps (NCCC)—a service initiative geared toward 18- to 26-year-olds—were pulled from their volunteer assignments. Simultaneously, the administration canceled contracts with AmeriCorps totaling roughly $250 million.
Although the agency isn’t being dissolved outright, the insider emphasized that AmeriCorps’ operations will be paused and “will resume at a later time.”
Founded in 1993 by President Bill Clinton, AmeriCorps was designed to promote volunteer service across the country. But despite receiving close to $1 billion in annual funding, the agency has come under heavy scrutiny for failing eight consecutive financial audits over the past ten years.
“AmeriCorps has a troubling history of mishandling taxpayer dollars,” said Rep. Burgess Owens (R-Utah), chair of the House Subcommittee on Higher Education and Workforce Development. “In 2023, the Inspector General’s report, Management Challenges, pointed to major issues—including AmeriCorps’ inability to detect fraud. It’s unclear if the agency will ever achieve a clean audit again.”
That same report listed 78 unresolved recommendations, despite AmeriCorps claiming it had acted on 20 of them.
A review of AmeriCorps’ budget history by Fox News revealed a 2023 operating budget of $1.31 billion, with $99.7 million allocated for staff wages. The budget remained nearly the same for fiscal year 2024, and the Biden administration has proposed increasing it slightly to $1.34 billion in 2025. The agency’s financial report for 2024 shows total assets of $3.7 billion, including more than $1.5 billion in investments.
AmeriCorps has increasingly focused on initiatives related to racial equity, climate action, and community engagement. Its most recent management report emphasized diversity, equity, and inclusion (DEI) as central pillars of its strategic agenda.
“Racial and economic equity are embedded in AmeriCorps’ mission,” the report states, “ensuring that volunteers reflect the communities they serve.”
Despite these stated goals, Rep. Owens argued that the agency’s consistent lack of accountability makes continued funding unjustifiable.
“Some of AmeriCorps’ initiatives may have noble intentions, but intentions aren’t enough,” Owens said. “Taxpayers deserve results—and after years of broken promises and failed reforms, it’s clear the agency is built on a flawed foundation.”
He concluded by suggesting that AmeriCorps be considered for elimination by the Department of Government Efficiency (DOGE): “We can no longer justify propping up a program that repeatedly fails to meet basic standards. It’s time for a full reset—or to shut it down entirely.”
