Source: The Economic Times

The giant cuts have been announced.

The U.S. Department of Government Efficiency (DOGE), led by billionaire entrepreneur Elon Musk, directs AmeriCorps to cut grant funding near $400 million-short for about 41% ‘s total budget spending according to three individuals familiar with the situation who requested anonymity Reported by The Washington Post, the decision is expected to affect 1,031 organizations as well as some 32,465 AmeriCorps members and senior volunteers nationwide.

About AmeriCorps

Established by President Bill Clinton in 1993, AmeriCorps is the federal agency created to promote national service and volunteerism. This agency brings together under one umbrella many service initiatives, old and new, from the Volunteers in Service to America (VISTA) program, dated back to 1965 under President Lyndon B. Johnson. Today, AmeriCorps engages more than 200,000 people annually in assisting communities in a variety of areas such as education, disaster relief, and poverty alleviation. For the fiscal year 2025, AmeriCorps is budgeted at approximately $1 billion

Termination Notices Spark Alarm

Last Friday, initial grant termination notices were released to recipients who are now being told that their awards “no longer effectuates agency priorities,” according to notices reviewed by The Washington Post

The suddenness of the decision, in addition to its wide application, has raised alarms all round, especially as many of those affected involve welfare and emergency response programs.

California Pushes Back

California Governor Gavin Newsom issued a strong statement condemning the federal move, calling it an illegal dismantling of essential services. “Last week, Governor Newsom announced that as the Trump Administration dismantles the AmeriCorps service program, California will both challenge the illegal action in court and accelerate recruitment for the California Service Corps program — already the largest service corps in the nation, surpassing the size of the Peace Corps. When the devastating fires struck Los Angeles earlier this year, AmeriCorps members were on the ground, distributing supplies and supporting families. The agency’s shutdown hamstrings these efforts” the statement read.

Senator Cassidy Voices Concern

Senator Bill Cassidy (R-Louisiana) also expressed disappointment at the funding cuts. While supportive of government efficiency, said that although he supports “eliminating waste,” he would object to cutting AmeriCorps grants. In a post on X, Cassidy wrote:

“Getting various reports that DOGE RIFs at @AmeriCorps are being extended to the cancellation of Congressionally appropriated grants. Attempting to get more information from DOGE/OMB to confirm or disprove these reports. 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 organisations that provide crucial support after hurricanes and natural disasters.”

In conclusion

The political back-lash keeps mounting, and in the wake of this girth, thousands of supported organizations go along such tumultuous times trying to see the future of their programs. DOGE defends the cuts as fiscal prudence taken too far, whereas others argue that destroying viable long-term avenues into community development, disaster response, and public service infrastructure will engender a huge void in the aggregate.