A major restructuring is underway at AmeriCorps, the national service agency founded in 1993, with approximately 75% of its full-time staff placed on administrative leave. The move affects 535 out of the agency’s 700 employees, according to internal sources.
The shake-up includes the early removal of volunteers from the National Civilian Community Corps (NCCC) program, which engages young adults aged 18–26 in community service across the country. In addition, federal contracts with AmeriCorps totaling roughly $250 million have been terminated as part of a broader effort to reassess the agency’s scope and operations.
AmeriCorps, established to promote civic engagement and community improvement through volunteerism, has faced ongoing scrutiny over its financial practices. Over the past decade, the agency has failed eight consecutive audits, raising concerns about financial oversight and accountability. A 2023 Inspector General report cited challenges in fraud detection and noted 78 unresolved recommendations for improvements.
Despite these setbacks, AmeriCorps has continued to receive substantial federal funding—more than $1.3 billion for fiscal year 2023, with similar amounts allocated for 2024 and proposed for 2025. According to its latest annual management report, the agency holds $3.7 billion in assets, including over $1.5 billion in investments.
In recent years, the agency has prioritized initiatives focused on diversity, equity, and climate resilience. The 2024 report emphasized “advancing racial and economic equity” as a core objective, aiming to ensure AmeriCorps members reflect the communities they serve and to expand access to national service opportunities.
Some lawmakers have raised concerns over the agency’s future, citing persistent operational challenges and a need for clearer financial accountability. There are calls for significant reform or reassessment of the agency’s role and funding, though AmeriCorps has indicated that its operations will continue following the restructuring.
AmeriCorps has not released an official statement outlining when suspended operations will resume or how future program changes will be implemented.
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