Iowa nonprofits reeling from federal AmeriCorps cuts
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Iowa's nonprofit sector is facing a crisis as federal cuts ordered by the Trump administration are causing mass layoffs, shuttered programs and fewer services across the state, multiple organizations tell Axios.
Why it matters: One in 11 Iowans works in the nonprofit sector, according to the Iowa Nonprofit Alliance — a workforce that supports education, housing, mental health, food security, disaster relief and more.
- The recent slashes threaten not just nonprofit jobs but the critical services thousands of Iowans rely on, and at a time when working households are struggling, the Iowa organizations contend.
Driving the news: Earlier this month, the Department of Government Efficiency (DOGE) abruptly terminated nearly $400 million in AmeriCorps grant funding nationwide, affecting over 1,000 organizations and 32,000 AmeriCorps and AmeriCorps Seniors volunteers.
- In Iowa, 568 AmeriCorps members across 15 service programs are being impacted, according to an advocacy email from Bondurant City Councilperson Chad Driscoll, a former AmeriCorps program director at Big Brothers Big Sisters of the Mississippi Valley.
Zoom in: Bethany Snyder, director of the Iowa Nonprofit Alliance, told Axios the sector has been under siege since January, facing funding freezes and executive orders that restrict operations.
- The group is urging its supporters to contact their members of Congress.
- "This isn't just making bonnets for babies. These are critical services that Iowans rely on every single day," Snyder said.
Flashback: AmeriCorps was created in 1993 under President Bill Clinton to promote national service and civic engagement.
- It offers stipends, living allowances and education awards to participants who serve in nonprofits, schools and local governments.
- Programs include anti-poverty initiatives, local service placements and disaster response.
Stunning stat: Over the past three decades, more than 1.3 million Americans have served through AmeriCorps.
What they're saying: Rob Barron, executive director of the Seed Coalition — a DSM-based group promoting civic engagement among Midwest colleges — tells Axios that dozens of college students about to start summer service placements could find themselves without opportunities or paychecks.
What's next: Several states, including California and Colorado, have sued the Trump administration to block the AmeriCorps cuts.
- Barron says nonprofits are counting on the multi-state lawsuits to seek injunctive relief and restore AmeriCorps funding temporarily.