Agency Suffers Blow After Eight Failed Audits

Elon Musk delivers a speech during the inauguration rally

Elon Musk's Department of Government Efficiency (DOGE) has ordered AmeriCorps to terminate approximately $400 million in grants, representing about 41 percent of the agency’s total funding. The decision impacts over 1,000 organizations, as well as more than 32,000 AmeriCorps members and senior volunteers. Termination notices informed recipients that the awarded funds “no longer effectuates agency priorities.”

In this photo gallery, we review the impact.

President Donald Trump is joined on stage by Elon Musk

AmeriCorps operates with an annual budget of around $1 billion. White House spokeswoman Anna Kelly stated, "AmeriCorps has failed eight consecutive audits and is entrusted with over $1 billion in taxpayer dollars every year."

Senator Bill Cassidy (R-LA)

In Kansas, funding for AmeriCorps State and National programs has been eliminated, affecting local organizations that provide essential services such as after-school tutoring. Senator Bill Cassidy (R-LA) has expressed disappointment regarding the cuts, noting their negative impact on programs supporting veterans and disaster recovery efforts.

Chairman Bill Cassidy, (R-LA) during a business meeting of the Senate Committee on Health, Education, Labor, and Pensions

Cassidy wrote, "I support improving efficiency and eliminating waste, but I would have to object to cutting AmeriCorps grants like those that support Louisiana’s veterans and organizations that provide crucial support after hurricanes and natural disasters."

Senate Health, Education, Labor, and Pensions (HELP) Committee chairman Senator Bill Cassidy

Approximately 650 full-time AmeriCorps staff members have been placed on paid administrative leave, with layoff notices already issued.

Elon Musk, CEO of X and Tesla

AmeriCorps includes programs like Volunteers in Service to America (VISTA) and the National Civilian Community Corps (NCCC). These branches address community service needs, including disaster preparedness and environmental conservation.

Elon Musk during the 60th Presidential Inauguration

The changes to AmeriCorps followed a visit by DOGE to the agency's headquarters. In early April, AmeriCorps announced plans to reduce its workforce by up to 50 percent or more.

Grace Hall covers U.S. politics & news for content partner Modern Newsstand LLC.