Musk’s DOGE eliminates $400 million in AmeriCorps grants, hurting thousands

Fri Apr 25 2025
Julie Young (625 articles)
Musk’s DOGE eliminates $400 million in AmeriCorps grants, hurting thousands

Three sources who requested anonymity told The Washington Post that the US Department of Government Efficiency (DOGE), led by billionaire entrepreneur Elon Musk, has ordered AmeriCorps to cut nearly $400 million in grants, 41% of the agency’s total grant funding. Federal service and volunteer agency AmeriCorps. It enrolls around 200,000 people to service organizations annually. VISTA, an anti-poverty organization founded by Lyndon B. Johnson in 1965, was merged into it by President Bill Clinton in 1993.

Sources say 1,031 organizations and 32,465 AmeriCorps members and senior volunteers will be affected. AmeriCorps’ 2025 budget is roughly $1 billion. Grant termination notices began Friday. grant letters advised recipients their grant “no longer effectuates agency priorities,” according to The Washington Post. After receiving federal notification of AmeriCorps funding termination, California Governor Gavin Newsom delivered a statement on Friday.

Last week, Governor Newsom announced that California will challenge the Trump Administration’s dismantling of AmeriCorps in court and accelerate recruitment for the California Service Corps, the nation’s largest service corps, surpassing the Peace Corps. AmeriCorps members distributed goods and supported families after the Los Angeles fires earlier this year. A statement noted the agency’s shutdown hinders these activities.

Despite supporting “eliminating waste,” Senator Bill Cassidy (R-Louisiana) voiced dissatisfaction at the reduction and opposed slashing AmeriCorps grants. “Getting various reports that @AmeriCorps DOGE RIFs are being extended to cancel Congressionally appropriated grants,” Cassidy posted on X Saturday. Seeking DOGE/OMB confirmation or denial of these reports. I favor efficiency and waste reduction, but removing AmeriCorps money for Louisiana veterans and disaster relief organizations would be wrong.

Julie Young

Julie Young

Julie Young is a Senior Market Reporter and Analyst. She has been covering stock markets for many years.