Massachusetts Attorney General Andrea Joy Campbell announced that her office, alongside 23 attorneys general and two governors, successfully forced the Trump Administration to release more than $184 million in federal funds designated for AmeriCorps service programs.
The funding had been withheld by the Office of Management and Budget (OMB) despite a prior court injunction.
Background: Executive Order and Workforce Reductions
In February, the administration issued an Executive Order directing federal agencies to reduce workforce size and prepare for large-scale terminations.
AmeriCorps subsequently placed more than 85% of its staff on administrative leave and issued termination notices effective June 24, 2025.
This action prompted Campbell and a multistate coalition to file a lawsuit, alleging violations of federal law governing workforce reductions and appropriated funding. In June, the U.S. District Court granted a preliminary injunction, halting the planned layoffs, reinstating hundreds of unlawfully cancelled AmeriCorps programs, and prohibiting similar actions absent formal rulemaking.
OMB’s Withholding of Funds and Litigation Escalation
Despite the court’s order, OMB continued to block more than $184 million in appropriated funding. These funds supported programs under AmeriCorps Seniors and other nationally competitive grant initiatives.
In July, Campbell filed an amended complaint adding OMB as a defendant, coupled with a second motion for preliminary injunction seeking to compel release of the funds.
Facing a court deadline on August 28, the administration notified the court that OMB had removed its block and would release the money. AmeriCorps has since confirmed that the funds will be distributed to service programs nationwide.
Legal and Practical Implications
Legal analysts note that the case illustrates the ongoing tension between executive branch discretion and Congress’s power of the purse. While presidents may direct agency restructuring, statutory appropriations laws require agencies to disburse funds for their intended purposes. The federal court’s injunction reinforced this principle, preventing what Campbell described as the administration’s “reckless actions” from dismantling public service infrastructure.
The case also underscores the growing role of state attorneys general in federal oversight litigation.
Campbell’s office not only halted unlawful program terminations but also compelled compliance with statutory funding obligations that impact thousands of service members and community beneficiaries nationwide.
Local and National Impact
Massachusetts’ State Service Commission received more than $23 million in AmeriCorps funding in FY 2024 However, five programs in the state—including Boston Health Care for the Homeless Springfield College AmeriCorps, College Advising Corps at Boston University, Jumpstart for Young Children, and TerraCorps—saw delays in funding due to OMB’s actions.
Nationwide, AmeriCorps supports over 200,000 participants annually, connecting veterans to services, addressing the opioid epidemic, assisting older adults, and providing disaster recovery aid.
