Musk’s Department Cuts $400 Million from AmeriCorps Grants Amid Major Reorganization

WASHINGTON, D.C. — Elon Musk‘s Department of Government Efficiency has ordered the cancellation of approximately $400 million in grants from AmeriCorps, the federal government’s national service and volunteering agency. This decision, reported on April 25 by the Washington Post, will impact 1,031 organizations and 32,465 AmeriCorps members and volunteers.

The canceled grants represent 41% of AmeriCorps’ total budget for 2025, a drastic reduction aimed at addressing what Musk and other officials claim is wasteful spending of taxpayer dollars. Grants from AmeriCorps support various community service initiatives, including education, disaster preparedness, and environmental conservation.

In a related move, last week, the White House placed most of AmeriCorps’ approximately 650 full-time employees on paid administrative leave, with layoff notices beginning to arrive on April 24. Employees expressed frustration over the sudden changes impacting their job security.

Senator Bill Cassidy of Louisiana publicly criticized the cuts, asserting that while he supports improving efficiency and reducing waste, AmeriCorps has provided vital support in his state. Cassidy expressed concerns via social media, emphasizing the organization’s importance to local communities.

In response to the funding cuts, California Governor Gavin Newsom announced that the state would initiate legal action against the federal government, describing the decision as a betrayal of America’s commitment to volunteer service. “We’ve gone from the New Deal to a federal government that gives the middle finger to volunteers serving their fellow Americans,” Newsom stated.

Though the legal basis for the lawsuit has not yet been disclosed, nonprofits and disaster response organizations are preparing for the repercussions as funding for essential services dwindles. AmeriCorps, founded in 1993, has traditionally received bipartisan support and follows the legacy of previous anti-poverty programs.

Volunteers with AmeriCorps are typically provided a modest living allowance, basic benefits, and an education award upon completing their service. Jade Marshalek, a recently discharged National Civilian Community Corps member, expressed her concern, saying, “A lot more nonprofits and government organizations are going to need help, and there won’t be anyone left to do it.”

The White House and AmeriCorps did not immediately respond to requests for comments regarding these developments.