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OMB Releases $184 Million in AmeriCorps Funds After Multistate Legal Pressure

The move follows a multistate lawsuit prompted by a June court injunction challenging the administration’s cuts.

Overview

  • OMB confirmed it will release $184 million that had been frozen from AmeriCorps, allowing funds to flow to service programs nationwide.
  • More than 20 states and the District of Columbia sued over the withholding, prompting negotiations that averted a planned court showdown.
  • A federal judge in June issued a preliminary injunction that reinstated hundreds of programs and required formal rulemaking for any further cuts.
  • Despite the injunction, the funds remained on hold until this week, when the administration agreed to release them ahead of a court deadline.
  • State officials reported concrete impacts: Illinois will see nearly $12 million restored, Maine will keep its agreed funding, and Maryland programs that received over $21 million last year can continue.