AmeriCorps Lawsuit Shocker: Why 1,000+ Programs Got Cut And Who’s Fighting Back

When Donald Trump became the 47th President of the United States and started his 2nd term, he went on to make some bold decisions, including cutting down on federal funding of many departments in the country. And just like that, he is also after AmeriCorps. For those who have little to no idea about AmeriCorps, well, it is actually a government-backed program that is known to help out communities across the nation by sending its people. And this isn’t some new program either, like it has been functional ever since 1993, and throughout the years, this program has helped literally millions of people. Help? How? Well, we’re talking about help in the sense of tutoring kids, cleaning up after disasters, assisting seniors, or supporting food and housing services.

Mainly, this program is there to help out people in the smaller towns in the country and lower-income areas, and it has been doing so for more than 30 years now.

Another interesting fact is that every single year, we see roughly 200k people taking part in AmeriCorps programs. And they don’t take it as a job, they volunteer to help out people. That’s all! But now, the Trump Administration is after this program, and they have made pretty big allegations, and this is the prime reason we’re seeing this AmeriCorps Lawsuit in the first place.

What Did the Trump Administration Do?

AmeriCorps Lawsuit Shocker

Well, right after the 2nd term of Donald Trump started as the commander in chief, sure enough, he went on to say to his team to keep a close eye on the government programs and departments because they wanted to heavily cut down on the spending of those that aren’t effective. And sure enough, the administration then took a closer look at AmeriCorps.

As per the claims of the Trump administration and their officials, this program failed at several financial audits, and in the financial year 2024 alone, there were more than $45 million that was reportedly unaccounted for. That was the prime reason that raised a lot of suspicion against this program, and people started questioning its authenticity and effectiveness altogether.

Then, on April 25, 2025, we saw some big steps taken by the White House, because they started straight up canceling AmeriCorps grants. Yup! Just like that, many programs across the country got their grants pulled away suddenly, and they lost all the funds/money that they totally relied on to run their services. Yes, just like that!

Who’s Taking Legal Action?

Right after that super bold movie of the Trump administration’s canceling the grants of many such programs, sure enough, many lawsuits followed. Nonprofits, AmeriCorps workers, and several state governments argued the cuts were unfair and possibly illegal, which is why we’re seeing this AmeriCorps Lawsuit in action too. As for some more details on that, well, one major lawsuit was filed in federal court in Maryland, while another came from more than 20 states, including California and Maryland.

All in all, these groups and people opposing these decisions of the Trump administration are arguing that the President can’t just shut down a federally approved program just like that. Especially without the involvement of Congress. This is precisely what this lawsuit is all about, and it is still in progress as we speak.

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