California Attorney General Rob Bonta, leading a coalition of 23 state attorneys general and two governors, announced a settlement that prevents the Trump Administration from dismantling AmeriCorps without warning. AmeriCorps, an independent federal agency, engages volunteers in community service programs addressing educational, public safety, and environmental needs.
The settlement resolves a multistate lawsuit filed in April 2025 after the Trump Administration moved to eliminate nearly 90 percent of AmeriCorps' workforce, cancel contracts, and close 400 million dollars' worth of AmeriCorps-supported programs.
Under the agreement, the Trump Administration commits to obligate all fiscal year 2026-2027 congressionally allocated AmeriCorps funds by September 30, 2026. The administration also stipulates it has no intention of undertaking mass layoffs or program terminations for that fiscal year, and must provide at least 30 days' notice if it intends to pursue any mass terminations, giving the coalition an opportunity to challenge such actions.
Litigation is paused through February 1, 2027, at which point the coalition will voluntarily dismiss the case without prejudice, provided AmeriCorps has complied with the agreement's commitments. If AmeriCorps does not comply, the coalition may petition the court to lift the pause and resume litigation.
Earlier court victories in this case resulted in the Trump Administration being forced to reinstate nearly 400 million dollars in terminated programs in June 2025 and to release over 184 million dollars in withheld funds in August 2025 to service programs in California and across the country.