Center for Non-Profits - Americorps Funding

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Americorps Funding

(This page last reviewed/updated 7/31/03)

The Center regularly monitors and analyzes legislation for its potential impact on the non-profit community. For more information, call the Center at 732/227-0800 or e-mail us at center@njnonprofits.org.

Efforts to secure additional federal funds to offset deep cuts in the Americorps program were defeated in the U.S. House of Representatives July 25. As we reported previously, in mid-July, the U.S. Senate voted to include a $100 million appropriation as part of a broader disaster relief appropriations package. However, despite intense lobbying by proponents of Americorps, the House of Representatives rejected a provision to include the extra appropriation funding in its version of the bill. Since the House has now recessed for the summer and crucial aid to the Federal Emergency Management Agency (FEMA) represents the core of the appropriation bill, the Senate will likely have to go along with the House version. The best Americorps supporters can hope for is renewed action when Congress reconvenes in September; in the meantime, Americorps programs will face steep cuts in their allotment of volunteers this year.

Although there had already been some caps imposed on the Americorps program, the new crisis stemmed from management and accounting issues at the Corporation for Management and Community Service which administers the program, and conflicting opinions from the General Accounting Office and the Office of Management and Budget regarding how much money should be kept in the Educational Award Trust funds (funds set aside to support the post-service education benefit available to Americorps members after a year of service). In early July, President Bush signed legislation to resolve the accounting issues, but despite broad-based bipartisan support, House leaders opposed to the program cited continuing concerns about its national-level management. The House did approve funding to allow some modest growth in the program next year, but far less than Americorps supporters or the Bush Administration had requested.

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