Elon Musk's DOGE cuts $400 mn in AmeriCorps grants affecting thousands

AmeriCorps, the federal agency for national service and volunteerism, was created in 1993 by President Bill Clinton and annually enrolls over 200,000 individuals to serve organisations

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The US Department of Government Efficiency (DOGE), headed by billionaire entrepreneur Elon Musk, has directed AmeriCorps to cut nearly $400 million in grants, about 41 per cent of the agency's total funding for grants, according to three individuals familiar with the situation who requested anonymity, The Washington Post reported.

AmeriCorps is the federal agency for national service and volunteerism. Every year, it enrolls more than 200,000 individuals to serve organisations. It was created in 1993 by President Bill Clinton, who moved under its umbrella Volunteers in Service to America (VISTA), an anti-poverty program established in 1965 by President Lyndon B Johnson.

This move will impact 1,031 organisations and approximately 32,465 AmeriCorps members and senior volunteers, the sources said. AmeriCorps' budget for the 2025 fiscal year is around $1 billion.

Termination notices for the grants started going out Friday. Recipients were told that their award "no longer effectuates agency priorities," according to notices reviewed by The Washington Post.

Meanwhile, California Governor Gavin Newsom on Friday issued a statement after California received notice from the federal government of termination of its AmeriCorps grant programmes.

"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 said.

Senator Bill Cassidy (R-Louisiana) also expressed disappointment at the cuts and said that although he supports "eliminating waste," he would object to cutting AmeriCorps grants.

In a post on X on Saturday, 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.