(The Center Square) – Michigan Attorney General Dana Nessel has joined a coalition of 23 other states in expanding the legal challenge against the Trump administration’s continued efforts to cut tens of millions of dollars in AmeriCorps funding.
The cuts are coming despite a preliminary judicial ruling in June which reinstated hundreds of AmeriCorps programs.
“The Trump Administration cannot bend the rule of law to circumvent court orders they’ve already lost,” Nessel said. “My colleagues and I have already secured an injunction blocking their illegal and reckless attempt to withhold AmeriCorps funding . . . Once again, we must take action to ensure our communities continue to benefit from the vital services AmeriCorps provides.”
The lawsuit argued millions of dollars is being “unlawfully withheld” from AmeriCorps as it was already appropriated by the U.S. Congress, which means Congressional approval is needed to cancel it.
A press release from Nessel’s office stated that, despite the previous legal decision, the White House Office of Management and Budget is still withholding more than $38 million for different service programs, “threatening their survival and the wellbeing of those who depend on their services.”
“Just as AmeriCorps cannot terminate the agency’s functions by fiat or defund the agency, OMB cannot withhold, delay, or condition funds in defiance of administrative procedures, Congressional appropriations, and the Constitutional separation of powers,” the lawsuit states. “Accordingly, the Defendants’ actions should be declared unlawful and vacated.”
AmeriCorps is a U.S. government-funded service organization created in 1993. According to americorps.gov, the agency enrolls more than 200,000 people each year, while also providing more than $4.8 billion in education awards.
In February, President Donald Trump issued an executive order directing every federal agency to reduce its staff in a money-saving effort.
Since then, AmeriCorps has placed at least 85% of its workforce on administrative leave, as previously reported by The Center Square. It also canceled more than $400 million in grant funding nationwide, which has totaled nearly $1 billion annually in recent fiscal years.
While the majority of the states that have signed onto the lawsuit are Democrat-led, some Republican-led states like Kentucky also signed onto it.
“AmeriCorps members and AmeriCorps Seniors volunteers served at more than 1,300 locations across Michigan, including schools, food banks, homeless shelters, health clinics, youth centers, veterans facilities, and other nonprofit and faith-based organizations,” stated a report from AmeriCorps.
In Michigan, AmeriCorps had 7,900 members working from February 2024 through February 2025.
In 2024, the Michigan Community Service Commission alone received approximately $18 million in grants from AmeriCorps. In total, the state received more than $31.6 million in federal funding and generated more than $17.5 million in outside resources from businesses, foundations, public agencies, and other sources in Michigan.
“Terminating AmeriCorps grants would severely impact MCSC’s ability to continue its vital work, including supporting disaster recovery efforts in Northern Michigan following the March 2025 ice storm,” Nessel’s press release said. “Congress created AmeriCorps and appropriated funding to support public service, and neither OMB nor AmeriCorps hold authority to defy Congress by refusing to distribute funds to worthy service programs.”
