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OMB Releases $184 Million in AmeriCorps Funds After States' Legal Challenge

The pre-court agreement ends a months-long freeze triggered by the Trump administration's attempted cuts.

Overview

  • More than 20 states and the District of Columbia sued over the freeze, prompting an agreement that restored the full $184 million without a court hearing on Friday.
  • In June, a federal judge issued a preliminary injunction reinstating hundreds of AmeriCorps programs and requiring formal rulemaking for any cuts, though state officials said OMB initially withheld the money.
  • Maine officials said the state will keep its AmeriCorps allocation, noting about 2,200 members served last year and the state received $8.6 million in federal funding.
  • Illinois will see nearly $12 million in AmeriCorps grants restored, after earlier reductions forced at least 85% of agency staff onto leave and led to some terminations.
  • Attorneys general and local leaders said the release stabilizes services such as food assistance, tutoring, support for seniors and veterans, and efforts addressing the opioid epidemic.