States Force Release of $185 Million in AmeriCorps Funding After Legal Showdown

AmeriCorps programs will get about $185 million in federal funds from the Biden-era courts after weeks of uncertainty. The judgment followed a heated court battle between the Trump Administration and 24 states, led by New Jersey Attorney General Matthew Platkin, who challenged the government’s money withholding.
The White House Office of Management and Budget withheld cash months ago, provoking lawsuits and state authorities’ pressure. AmeriCorps programs nationwide were in limbo, endangering vital community services that depend on federal funding. The government planned to decrease AmeriCorps’ employment by roughly 90% and terminate about $400 million in contracts in April, but state attorneys general sued to block it.
A June federal court order saved hundreds of AmeriCorps programs from cuts. The Office of Management and Budget refused to release $184 million Congress appropriated despite this finding. AmeriCorps struggled to operate on inadequate resources, and thousands of volunteers risked being sidelined.
The legal battle intensified in early August when Platkin and 23 other state attorneys general sought a preliminary injunction to release the monies. Their case gained momentum as the deadline approached. Without fighting the order, the federal administration agreed and told judges the monies will be released on August 28. According to court records, AmeriCorps expects to receive the money from the U.S. Treasury by September 2 and distribute it by September 30.
This ruling is a relief for New Jersey. AmeriCorps volunteers in the state help with addiction rehabilitation, mentoring special needs children, teaching English to adults, and helping families after natural catastrophes. Attorney General Platkin hailed it a “hard-fought victory” and pledged to defend resident-benefitting initiatives. “We stood up for New Jersey and every AmeriCorps volunteer who gives back at no cost to the state when the administration tried to strip away resources that communities depend on,” Platkin said.
The lawsuit was supported by California, New York, Illinois, and Washington attorneys general and Kentucky and Pennsylvania governors. Their cooperation shows AmeriCorps’ extensive value. The initiative strengthens education, disaster assistance, environmental protection, and public health nationwide, solving gaps local governments cannot fill.
AmeriCorps will continue its purpose after this triumph, but it shows how vulnerable such organizations are to Washington politics. State leaders and community organizations are welcoming the restored money while reminding the public that programs like AmeriCorps are more than budget lines—they are lifelines for thousands of families who depend on volunteers.
Sources
Associated Press
NJ Office of the Attorney General
U.S. District Court for the District of Maryland