The Trump administration is moving forward with plans to dismantle AmeriCorps, the country’s premier national service program, delivering a crushing blow to low-income Americans who rely on its community-focused programs. 

Final layoffs for the agency’s staff are scheduled for June 24, as the administration eliminates $400 million in grants — nearly half the agency’s funding — and shutters programs that support more than 32,000 service members and volunteers across the country.

The move coincides with sweeping cuts to Medicaid, SNAP, housing assistance, and other vital social programs. These actions follow a pattern of policy decisions that have enriched Donald Trump, his family, and the nation’s wealthiest while systematically punishing the poor.

The dismantling of AmeriCorps is now the subject of a federal lawsuit filed in the U.S. District Court for the District of Maryland. Plaintiffs include Elev8 Baltimore, Red Cloud Indian School, Bur Oak Land Trust, Democracy Maine, the AmeriCorps Employees Union Local 2027, and nearly two dozen other nonprofit organizations and individuals directly impacted by the closures. 

The complaint alleges that the Trump administration and the U.S. Department of the Treasury have violated the Administrative Procedure Act, federal appropriations law, and the U.S. Constitution by unlawfully dismantling a functioning federal agency without obtaining congressional approval or seeking required public input.

“These sweeping actions have forced the early dismissal of participants, halted ongoing projects, and jeopardized critical support for communities nationwide,” the lawsuit states. “All of this progress now hangs in the balance.”

The cuts have already eliminated funding to 1,031 organizations and halted operations of the National Civilian Community Corps (NCCC), a congressionally mandated AmeriCorps program that assigned young adults to disaster relief, infrastructure, and environmental projects. The administration closed all four regional NCCC campuses, dismissed supervising staff, and expelled corps members — many of whom lost their housing the same day.

“This is heartless, cruel, and counterproductive,” said Joel Berg, CEO of Hunger Free America. “These young people weren’t just volunteers — they were the backbone of local disaster recovery, food distribution, and support for vulnerable populations. And they were thrown out like trash.”

According to the lawsuit, the administration provided no legal justification, no public notice, and no opportunity for affected groups to respond — steps required by law. 

Internal AmeriCorps employees revealed that nearly 85% of staff were placed on administrative leave in April, and most received official layoff notices effective June 24. Many of those employees were locked out of their email systems and barred from returning to their offices.

“Congress appropriated nearly $1 billion for AmeriCorps in fiscal year 2025 and required that no significant changes to the agency occur without formal rulemaking,” the suit contends. “Yet the Trump administration has ignored this mandate and acted through unauthorized DOGE Team appointees to execute a politically motivated takedown of the agency.”

Disproportionately Affecting Rural and Underserved Communities

Plaintiffs also argue that the terminations disproportionately impact rural and underserved communities. Organizations serving Native American students in South Dakota, low-income students in Baltimore, and disconnected youth in Maine lost essential funding with no warning.

Red Cloud Indian School, located on the Pine Ridge Reservation in South Dakota, had relied on AmeriCorps funding for 26 years. 

“We had just renewed a $1.3 million grant to continue our Lakota language immersion program,” the school’s leadership said. “Instead, we received a mass email saying the program was over and to cease all activities immediately. This has devastated our staff and students.”

In Baltimore, Elev8 saw its grant terminated days before it was scheduled to ramp up summer tutoring and after-school programming for hundreds of local students. In Buffalo, the Service Collaborative of Western New York lost its funding to provide digital literacy classes and device distribution to public housing residents. 

More than 400 organizations connected through the National College Attainment Network also had their AmeriCorps grants terminated, affecting programs that help tens of thousands of students access higher education.

Rep. Chrissy Houlahan (D-Pa.), who served in Teach for America through AmeriCorps, has led bipartisan efforts in Congress to block the dismantling of the agency. 

“This is an unconscionable act. AmeriCorps costs the government pennies to the dollar, and it gives people purpose, work experience, and a chance to help their country,” Houlahan said.

The lawsuit also highlights how the Trump administration’s actions violate the very laws that established AmeriCorps. Congress never gave the executive branch the authority to shut down programs like NCCC, VISTA, and the Volunteer Generation Fund, all of which were targeted for termination. The cuts were carried out without board approval or public comment, in violation of the Community Service Trust Act of 1993 and the Further Consolidated Appropriations Act of 2024.

Paul Anderson, a retired Minnesota Supreme Court justice who served in VISTA during the Vietnam War, described his service as life-changing. 

“I lived in Southeast Washington with a Black woman named Mrs. Kennedy and worked in housing legal aid. That experience shaped who I am, and it made me a better judge,” Anderson said.

Now 81, Anderson is among the thousands of AmeriCorps alums watching the agency collapse under what the lawsuit describes as an unlawful and politically driven purge.

“Congress created AmeriCorps to serve the poor, the disadvantaged, the vulnerable, and the elderly,” the plaintiffs wrote. “This administration has chosen to turn its back on all of them.”