AmeriCorps grant recipients sue to block Trump administration cuts

Driving the news: The lawsuit, filed in Maryland, alleges the administration does not have the power to unilaterally cut or end AmeriCorps grants and service programs.

Catch up quick: The Trump administration placed around 85% of the agency's staff on leave, per the lawsuit, and ended nearly $400 million in grants, according to America's Service Commissions.

• The nonprofit represents state and territorial service commissions that support over 40,000 AmeriCorps members.
• The cancellations will shutter more than 1,000 programs and end service for over 32,000 AmeriCorps members and AmeriCorps Seniors volunteers, per ASC, sending shockwaves through the nonprofit sector.

Here's what to know about AmeriCorps' history, structure and dismantling.

What is the impact of AmeriCorps grant terminations and cuts?

Case in point: Jacob Toups, the co-founder of Rainbow Labs, an organization that mentors and supports LGBTQ+ youth, said the AmeriCorps Volunteer Generation Fund grant his organization received allowed it to hire a new staff member focused on critical outreach.

• But on April 25, the organization received notice from AmeriCorps that their award, which provided around $165,000 annually, had been terminated. On Monday, the group joined more than a dozen organizations to sue the administration.

The latest: In February, after the start of Trump's second term, Rainbow Labs received a letter questioning whether the program would comply with the president's policies, such as those on a DEI-related activities, Toups said.

• "It wasn't very clear — and still isn't very clear from the administration — what those [DEI] activities are," he added.
• Rainbow Labs decided to push back, arguing the agency's actions were illegal.
• "This felt like a loyalty test," Toups said. To him, that test questioned: "Do you comply with the Trump administration, or do you choose your community?"

Zoom out: Derrick Miller, the executive director of a nonprofit based in Michigan's Washtenaw County, also received a compliance notice in February.

• His organization, the Community Action Network, manages seven community centers in under-resourced neighborhoods and offers food security, education, housing stabilization, sustainability and community building services.
• "I had to go through a very disgusting process of taking all of our content, throwing it in ChatGPT, and screening it for DEI," he said. Ultimately, he received notice they were in compliance.
• But on April 25, he was notified that his nonprofit's $45,000 award was being terminated and "no longer effectuates agency priorities." The five AmeriCorps members working at CAN were also cut from their program.

What he's saying: "If it's not about the development of our youth, if it's not about ensuring people have food and healthy food," Miller asked, "...what is the administration's priority?"

• It came on the heels of other blows from the federal level as CAN was already coping with prior AmeriCorps reductions, USDA TEFAP cancellations that jeopardized food supply, and paused sustainability projects, he said. That's left a gap that can't be filled with just local support.
• "You cannot eliminate this level of resources that are coming through the federal government and expect local communities to cover it," he said.

What is AmeriCorps and what does it do?

Flashback: AmeriCorps was created in 1993 during the Clinton administration. Its members work on causes such as disaster relief, environmental conservation and education.

• It has some 1.3 million alumni. Each year, the agency places more than 200,000 AmeriCorps members and Seniors volunteers in service roles.

Its main programs are the Volunteers in Service to America (VISTA), the National Civilian Community Corps (NCCC) and State and National.

• AmeriCorps Seniors also connects individuals 55 and older to service opportunities.
• Most members receive a modest living allowance, per the AmeriCorps website.

What has the political response been?

White House spokesperson Anna Kelly said in a statement to Axios that "AmeriCorps has failed eight consecutive audits and identified over $45 million in accounted for payments in 2024 alone."

• She added, "President Trump is restoring accountability to the entire Executive Branch."
• The agency's inspector general said in November that it had been "unable to produce auditable financial statements for the last eight years" and made financial practice recommendations.
• AmeriCorps did not respond to Axios' request for comment.

Friction point: The unraveling of AmeriCorps has sparked bipartisan concern.

• Sen. Bill Cassidy (R-La.) said in an X post last month that while he supports "improving efficiency and eliminating waste," he "would have to object to cutting AmeriCorps grants like those that support Louisiana's veterans and organizations that provide crucial support after hurricanes and natural disasters."
• California joined a group of two dozen states and D.C. that sued the Trump administration late last month, alleging DOGE was unlawfully dismantling AmeriCorps.
• California Gov. Gavin Newsom (D) said DOGE's actions "threaten vulnerable Californians, disaster response and recovery, and economic opportunities."

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Editor's note: This story has been updated with comment from the White House.