This article was originally published in Colorado Biz on September 3, 2025.
By Colorado Biz Staff
The White House Office of Management and Budget will release more than $184 million in previously withheld funding for AmeriCorps service programs nationwide after facing a lawsuit from Colorado Attorney General Phil Weiser and a coalition of state attorneys general.
In Brief:
- Coalition of state attorneys general forces release of $184M
- Funds support AmeriCorps service programs across the nation
- Court fight followed attempts to cut 90% of AmeriCorps workforce
- Programs include literacy, veteran support and disaster relief
The funding had been blocked despite a federal court order, creating uncertainty for hundreds of programs that rely on AmeriCorps support.
“I have met with dedicated AmeriCorps volunteers across the state who are working to help people and provide critical services in their communities such as wildfire mitigation, teaching others how to read, supporting veterans and working in food banks,” Weiser said. “National service is critical to our future. It inspires young people to work on meaningful programs and make a difference.”
In April, Weiser and other attorneys general challenged the administration’s plan to eliminate nearly 90 percent of the AmeriCorps workforce, cancel contracts and shut down $400 million in programs. In June, a federal judge issued a preliminary injunction that reinstated programs and barred the agency from making similar cuts without formal rulemaking.
Despite the ruling, OMB continued to withhold funds intended for AmeriCorps Seniors programs and other federally supported initiatives. The coalition amended its lawsuit in July to add OMB as a defendant and sought an injunction to force the release of the money.
On Aug. 28, rather than contest the motion, the administration informed the court that OMB would release all withheld funds. AmeriCorps is expected to distribute the money to programs nationwide.
The decision protects service initiatives that rely on AmeriCorps to place volunteers in organizations addressing community needs. Programs include literacy support, disaster relief, veteran services and food security.
Weiser called the outcome a victory for Colorado and other states. “This is our latest win protecting important federal funding for Colorado, and I will continue to fight for Coloradans when this administration takes illegal actions and acts like it is above the law,” he said.