Twenty-four Democratic-led states and the District of Columbia have filed a federal lawsuit in Baltimore, accusing the Trump administration of unlawfully dismantling AmeriCorps, the national service agency that supports community volunteering efforts across the U.S. The suit claims President Donald Trump overstepped his constitutional authority by canceling nearly $400 million in grants and slashing 85% of the AmeriCorps workforce, effectively gutting the agency created by Congress.
Led by attorneys general from California, Maryland, and Delaware, the lawsuit alleges that the cuts violate the separation of powers by undermining congressional appropriations and the agency’s statutory duties. AmeriCorps, which operates with a $1 billion annual budget, previously funded over 1,000 community programs and deployed more than 200,000 volunteers nationwide for services including education support, disaster relief, and senior care.
The mass layoffs and funding terminations follow a February executive order by Trump directing federal agencies to reduce staffing and spending. The Department of Government Efficiency (DOGE), spearheaded by adviser Elon Musk, has led this initiative to shrink the federal workforce. As a result, AmeriCorps employees were placed on administrative leave and informed of their termination effective June 24.
Critics argue the move threatens vital services and public benefit. California Attorney General Rob Bonta said the administration is “dismantling AmeriCorps without regard for the communities it strengthens.” However, the White House defended the action, with spokesperson Anna Kelly citing AmeriCorps’ failure to pass eight consecutive audits and reporting over $45 million in improper payments in 2024 alone.
The outcome of the lawsuit could have major implications for the future of national service and the balance of power between Congress and the executive branch.