Across the nation, public and private schools, charter schools, and some out-of-school programs can operate thanks to volunteers from federal programs like AmeriCorps. These individuals support essential services like tutoring and mentoring programs, college and career counseling, and more.
However, AmeriCorps, which is funded by federal tax dollars, was one of many federal agencies that faced dramatic funding cuts as part of the Department of Government Efficiency’s (DOGE) crackdown on government spending.
As part of the Trump administration’s actions, 80% of AmeriCorps grants were terminated on April 25.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
America’s Service Commissions said that the funding rollback would terminate the jobs of 32,000 volunteers nationwide and force as many as 1,000 important programs to shut down.
One of the organizations impacted by the mass cuts was Flipside AmeriCorps, a Marion County-based community program that provided critical afterschool support and mentorship to middle school students in West Virginia.
“We have other grant funding available to keep the Flipside Afterschool program operational through the end of the school year,” the program shared in a release. “That’s not the case at many programs across the state or country.”
Now, a recent court ruling means that over two dozen states may get some funding back to keep their programs alive, while others, like West Virginia, may be left searching for ways to stay afloat.
Here’s more to know about what’s happening with AmeriCorps funding for year-round programs that sustain after-school and summer programs.
AmeriCorps lawsuit: What’s going on?
The Trump administration must restore millions of dollars in AmeriCorps grant funding to around two dozen states and the District of Columbia. That's according to a recent ruling from a federal judge.
Here’s how we got here.
- AmeriCorps State and National program is a 30-year-old federal agency that was budgeted $557 million in congressionally approved funding last year. The funding is used to support volunteerism and national service.
- For example, the funding recently helped support 1,000 local programs and 32,000 AmeriCorps volunteer jobs, including young and older adults.
- The Department of Government Efficiency rolled back funding by $400 million on April 25, 2025.
California, New York, the District of Columbia, and 22 other states sued the Trump administration, arguing that dismantling AmeriCorps was unconstitutional.
Essentially, the states that sued the Trump administration alleged that the abrupt termination of $400 million in federal grants and an 85% reduction in workforce were illegal since they were issued without notice.
U.S. District Judge Deborah L. Boardman found that the administration had acted unlawfully because Congress must provide advanced notice and a comment period before issuing major changes or funding cuts to AmeriCorps.
Boardman granted the plaintiff’s request for a preliminary injunction on June 5, 2025, that blocks AmeriCorps grant cancellations and terminations of corps members. However, the ruling only applies to the states that sued the administration in April.
Still, that means more than two dozen states that didn’t participate in the lawsuit could still face disruptions to services, like after-school programs, if they don’t secure alternative funding.
AmeriCorps cuts would devastate after-school programs
AmeriCorps volunteers help sustain hundreds of after-school, mentorship, and educational programs across the U.S.
Volunteers who work through AmeriCorps help thousands of community-based organizations across the nation sustain key education programs year-round.
Importantly, programs funded by AmeriCorps grants often offer low-cost or free support to students and children who need assistance with tutoring, mentorship, or other social skills.
Some local programs rely on AmeriCorps volunteers to keep after-school enrichment activities operational.
- In California, AmeriCorps members serving in rural Imperial County provide daily tutoring to more than 200 low-achieving K-12 students and 90 special education students with IEPs.
- In Delaware, AmeriCorps helped fund Children’s Beach House, which supports children in foster care as well as after-school programs.
California and Delaware were among the states that filed a lawsuit against the Trump administration and were ordered to have their AmeriCorps funding restored.
Other states include: Arizona, Colorado, Connecticut, Maryland, Hawaii, Illinois, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.
Some after-school programs could still shut down
Stripping AmeriCorps grant funding has forced 1,000 to end its services, some affected organizations include after-school programs.
The federal cuts to the AmeriCorps grant program could impact some families as soon as this summer break.
AmeriCorps and AmeriCorps VISTA programs are an essential component of afterschool and summer learning across the nation, according to Jodi Grant, executive director of Afterschool Alliance.
In Virginia, one organization that offers a free daily academic after-school program for 3rd through 8th grade students in Arlington said the DOGE cuts would impact 30% of their funding. Aspire said its AmeriCorps members help as many as 150 students, and funding cuts would mean they would have to serve fewer students.
More examples of impacted after-school programs include:
- In Oklahoma, Camp Fire Green Country, which has served the Tulsa-area community for 21 years, had 11 members and two staff positions funded by the AmeriCorps grant. The program, which provides quality programming camps and after-school clubs, can no longer offer service hours.
- In Missouri, the Emmanuel Family & Child Development Center had to let go of 21 AmeriCorps volunteers after its grant was terminated. The $178,000 gap is one that the Kansas City-based facility will have to fill to maintain its after-school and before-school hours for pre-schoolers, local reports said.
These states are not among the 24 that were ordered to have their AmeriCorps grant funding reinstated.
“The Afterschool Alliance and the afterschool community, including parents across the country, are urging the administration to reconsider these cuts and asking Congress to step in,” said Grant in a statement. “When we shortchange our children, we diminish our country’s future.”
Why it matters
Across the nation, AmeriCorps provides key funding and volunteer opportunities to help communities provide essential services to vulnerable communities, including your children.
Also, studies have shown that every tax dollar the government puts into AmeriCorps programs can generate more than $17 in benefits. Those gains come from things like higher tax revenues, economic growth, and savings in other government services.
- According to the latest data available, more than 75.7 million people volunteered through the organization in 2023, providing over 4.99 billion hours of service worth $167.2 billion.
- Volunteers support schools and shelters, food banks, and other civic, nonprofit, and faith-based organizations in the U.S.
Notably, some states had higher volunteer rates than others. These included Utah, Vermont, Minnesota, Nebraska, Kansas, South Dakota, Connecticut, Montana, Oregon, and Washington, D.C.
Although a federal judge ruled that the Trump administration must reinstate AmeriCorps grants in 24 states, others still face uncertainty.
Related Content
- Here’s How the Child Tax Credit Could Increase Under Trump
- Key Family Tax Breaks Are on the GOP Chopping Block This Year
- 2025 Family Tax Credits: Four IRS Changes That Can Save You Money
-
Over 50 and Still Paying Student Loans? Here's Some HelpIt's the club no one wants to join. But if you are over 50 and still paying student loans, there are ways to tackle both debt and retirement savings.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
Ask the Editor, May 30: Questions on the One Big Beautiful BillAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the House-passed “One Big Beautiful Bill.”
-
Trump Tariffs: Will Walmart, Target and Nike Still Raise Prices in 2025?Tax Law Walmart and other major U.S. retailers were bracing for price hikes due to steep tariffs, but now that could change.
-
What Do Trump's Pardons for Rich Tax Evaders Mean for IRS Enforcement?Tax Law Recent pardons raise questions about tax fairness and the difference between tax avoidance and evasion.
-
Are Clean Energy Tax Credits a Thing of the Past?Tax Credits Now that the House GOP mega bill has passed, some wonder whether energy-efficient incentives like solar, electric vehicle, and home improvement tax credits could go away.
-
Employee Retention Credit Refunds Could be at Risk Under GOP Tax BillTax Credits Millions of small-to-mid-size businesses could be denied the pandemic-era ERC under Trump’s tax agenda.
-
Millions Could Lose SNAP Food Benefits Under Trump Tax Cut PlanTax Policy The House Agriculture Committee approved nearly $300 billion in cuts to SNAP benefits, putting many at risk of hunger.
-
Government Watchdog Warns More IRS Layoffs to ComeIRS Over 11,400 IRS employees took the Trump-instructed buyout or were terminated. What does it mean for your taxes going forward?
-
Here's How the Child Tax Credit Could Increase Under TrumpTax Credits House Republicans released details on President Trump’s ‘one big, beautiful bill,’ including an increased child tax credit.
