TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport, as part of a coalition of 23 attorneys general and two governors, has reached a settlement resolving a 2025 lawsuit over federal efforts to cut AmeriCorps programs and funding.
The agreement requires AmeriCorps to provide the coalition states with at least 30 days’ written notice before taking certain large-scale actions during fiscal year 2026, including terminating grants or dismissing a large number of service members.
The settlement follows litigation filed after the Trump administration moved in April 2025 to eliminate nearly 90% of AmeriCorps’ workforce, cancel contracts and terminate about $400 million in AmeriCorps-supported programs. The original lawsuit challenged those actions and sought to stop the dismantling of AmeriCorps.
According to the Attorney General’s Office, the lawsuit previously resulted in the reinstatement of nearly $400 million in terminated AmeriCorps programs and the release of more than $184 million in funding to service programs across the country. The cuts had threatened more than $6.6 million in funding for AmeriCorps programs in New Jersey.
“AmeriCorps members are indispensable to organizations across New Jersey, working as critical volunteers in our communities,” Davenport said. “While this disruption never should have happened in the first place, I am pleased that by uniting together, states were able to not only stop these unannounced and drastic cuts to these important programs, but also to take steps to prevent this from happening again.”
In New Jersey, AmeriCorps members support programs involving addiction recovery, adult English education, academic mentoring for children with special needs, maintenance of parks and green spaces, and disaster recovery and relief.
Under the settlement, AmeriCorps states that it does not anticipate large-scale grant terminations during fiscal year 2026 like those undertaken in spring 2025, reductions in force involving union employees beyond certain previously planned cuts or the dismissal of a large number of service members.
If AmeriCorps takes any of those actions or makes a material change to its delivery of volunteer services, it must provide the coalition states with at least 30 days’ written notice and identify the legal authority for the action.
AmeriCorps also agreed to commit substantially all of its fiscal year 2026 funding by Sept. 30 and administer its National Civilian Community Corps and AmeriCorps VISTA programs in accordance with federal law.
The settlement pauses the litigation through Feb. 1, 2027. At that point, the states will voluntarily dismiss the case without prejudice if AmeriCorps has complied with its commitments. If the states determine AmeriCorps has not complied, they may ask the court to lift the stay and resume the litigation.
Davenport was joined in the settlement by the attorneys general of Maryland, California, Colorado and Delaware, which co-led the coalition, along with Arizona, Connecticut, the District of Columbia, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin, as well as the governors of Kentucky and Pennsylvania.
