AmeriCorps has faced mounting criticism over its management. A congressional subcommittee revealed that despite receiving close to $1 billion in public funding annually, the agency has failed eight audits in the past decade.
Rep. Burgess Owens, chair of the House Higher Education and Workforce Development Subcommittee, called AmeriCorps a “long history of abusing taxpayer dollars.” He pointed to a 2023 Inspector General report that flagged major weaknesses, including the agency’s inability to detect fraud.
Financial records show AmeriCorps held $3.7 billion in assets in FY2024, with over $1.5 billion invested. Still, critics argue these resources have not translated into accountability. The Biden administration had proposed more than $1.34 billion in funding for FY2025, earmarked for diversity, equity, inclusion, and climate initiatives.
Owens dismissed the agency’s priorities as misplaced, saying: “It makes no sense to expand this agency or give it more money when it continuously fails to meet basic accountability standards. It is time to admit this is a failed program that needs a complete overhaul or elimination.”
While the Trump administration has not announced whether AmeriCorps will be permanently downsized or absorbed into another federal effort, the decision to sideline most of its staff signals a dramatic turning point for one of the nation’s longest-running service programs.
