The Department of Government Efficiency, led by Elon Musk, has ordered the cancellation of approximately $400 million in grants managed by AmeriCorps, the federal national service and volunteering agency. The move, reported Friday based on sources familiar with the matter, aims to reduce federal spending.
The grants targeted for cancellation represent 41% of AmeriCorps' budget for 2025. This action is expected to affect 1,031 organizations and 32,465 AmeriCorps members and senior volunteers.
Federal grants support local and national groups that conduct community services. These services include work related to education, preparedness for disasters, and environmental conservation.
The cancellation aligns with President Donald Trump and advisor Musk's stated goal to shrink the federal government, arguing U.S. taxpayer money is not being used efficiently.
Following the order, the White House placed most of AmeriCorps' 650 full-time staff members on paid administrative leave last week. Layoff notices reportedly began arriving Thursday for some employees.
California Governor Gavin Newsom responded Friday, stating the state received notice of termination for its AmeriCorps grant programs. Newsom criticized the action as a move to dismantle the agency. His office indicated California intends to sue the federal government over the decision. Read Governor Newsom's statement.
The governor previously announced California would challenge the action in court and increase recruitment for the state's own California Service Corps program. The state highlighted that AmeriCorps members recently assisted communities during fires near Los Angeles. See information on LA fires.
Local programs that rely on federal AmeriCorps funding also face uncertainty. In Philadelphia, for example, the city receives $17.9 million in federal funding for volunteer programs. Local leaders expressed concern that the cuts could slow down or stop these efforts. Learn about Philadelphia programs.
AmeriCorps and the White House did not immediately respond to requests for comment regarding the grant cancellations and staffing actions.
Governor Newsom stated, “We will serve them with a lawsuit.”
