A coalition of 24 Democratic-led states and the District of Columbia filed a federal lawsuit on Tuesday, accusing the Trump administration of unlawfully dismantling AmeriCorps by slashing funding, canceling grants, and cutting around 85% of the agency's workforce.
The complaint, filed in U.S. District Court in Baltimore, claimed the administration lacked the constitutional authority to unilaterally gut the agency, which was created by the Congress, Reuters reported.
According to the lawsuit, the Trump administration used the Department of Government Efficiency (DOGE) to execute major cost-cutting measures, resulting in the termination of grants and the elimination of most of its staff.
The suit alleged that these actions undermined the congressionally approved funding -- specifically, the $557 million allocated this year to the AmeriCorps State and National program, Associated Press reported.
The 30-year-old federal agency for volunteer service employs over 500 full-time federal workers and has an annual operating budget of around $1 billion.
In February, Trump issued an executive order instructing federal agencies to plan for staff cuts and mass layoffs. Following the directive, AmeriCorps placed over 85% of its workforce on administrative leave and notified them of termination effective June 24.
Impact On National Service
AmeriCorps oversees numerous service programs that deploy tens of thousands of members nationwide to work on community initiatives and respond to natural disasters. Roughly 200,000 individuals participate annually, receiving living stipends and future education benefits in return for their service.
One affected initiative is the National Civilian Community Corps, which supports about 2,000 young adults with basic living expenses and housing during their 10-month terms. The lawsuit claimed these corps members were informed this month that their service would end early.
AmeriCorps members had recently played a key role in responding to wildfires in the Los Angeles area, distributing supplies, and assisting affected families.
Grant cancellations and program shutdowns
The legal filing said the agency began issuing termination notices last week for nearly $400 million in grants that fund a broad array of volunteer and service efforts. A total of 1,031 programs received notifications of grant cancellations or shutdowns.
California Attorney General Rob Bonta, one of the leaders of the lawsuit, sharply criticized the cuts, stating that the Trump administration had acted without regard for the thousands of Americans committed to national service or the communities that rely on their contributions.
Hundreds of millions in grants to volunteer commissions in all 52 states and territories -- including Washington, Puerto Rico, and Guam -- have been affected, according to Rachel Bruns of America's Service Commissions. She noted that commissions in Wisconsin, Alabama, Wyoming, Oregon, and Maine reported full cuts to their grant portfolios.
Projects such as after-school programs, veteran services, food pantries, child abuse prevention efforts, and home construction will be impacted.
White House cites financial mismanagement
White House defended the cuts by pointing to financial mismanagement within AmeriCorps. A spokesperson noted that the agency had failed eight consecutive audits and had reported over $45 million in improper payments in 2024 alone -- issues tied to inadequate documentation, calculation errors, and miscoded expenses.
"President Trump has the legal right to restore accountability to the entire executive branch," White House deputy press secretary Anna Kelly said.
