Oregon AG Rayfield secures settlement protecting AmeriCorps for one year

SALEM, Ore. (KTVZ) -- Oregon Attorney General Dan Rayfield has secured a settlement with the Trump administration that protects AmeriCorps programming and volunteers for one year. The agreement follows legal actions taken after federal officials attempted to make major reductions to the service organization.

The resolution follows previous legal actions that forced the federal administration to restore nearly $400 million in canceled AmeriCorps funding and release another $184 million that had been held back from programs nationwide. A coalition of states filed suit in April 2025 after the administration attempted to eliminate nearly 90% of AmeriCorps staff, cancel contracts and shut down $400 million worth of initiatives.

AmeriCorps pays for and places volunteers with local organizations to perform community services, including tutoring students, assisting with disaster recovery and supporting low-income families. Local organizations depend on the federal agency to recruit and manage the volunteers who conduct that work.

Under the settlement, AmeriCorps agreed not to cancel grants all at once, lay off represented employees beyond cuts already planned, or dismiss volunteers en masse during the current year. The federal administration must notify states 30 days in advance if it proposes major changes to the program and provide a legal justification.

Oregon Rayfield highlighted the impact of the program when commenting on the legal resolution. “AmeriCorps volunteers show up for Oregon communities every day, strengthening our schools, our nonprofits and our neighborhoods,” Rayfield said. “We already stopped the Trump administration from dismantling this program once. This settlement protects AmeriCorps for another year.”

The agreement specifically covers two federal programs: the National Civilian Community Corps and AmeriCorps VISTA. Federal officials agreed to run both programs according to federal law and cannot alter service terms for current participants except under specific situations outlined in the settlement.

Under the terms of the resolution, AmeriCorps is required to spend nearly all of its current-year funding by Sept. 30. The administration must also adhere to the 30-day notice requirement prior to proposing any major modifications to the program.