Attorney General Nessel Continues Challenge to the Trump Administration’s Withholding of Funds from AmeriCorps

LANSING – Michigan Attorney General Dana Nessel today joined a coalition of 23 attorneys general – joined by the governors of Kentucky and Pennsylvania – in expanding a lawsuit (PDF) challenging the Trump administration’s effort to gut AmeriCorps by withholding tens of millions of dollars in funding for critical service programs. In June, Attorney General Nessel and the coalition won a court order that reinstated hundreds of AmeriCorps programs that were unlawfully cancelled and barred AmeriCorps from making similar cuts without formal rulemaking. Despite this order, the White House Office of Management and Budget (OMB) is withholding vast sums intended for outstanding service programs, threatening their survival and the wellbeing of those who depend on their services. Because of the Trump administration’s withholding of these critical resources, the coalition amended its lawsuit to add OMB as a defendant and brings new legal claims against the agency.  

“The Trump Administration cannot bend the rule of law to circumvent court orders they’ve already lost,” Nessel said. “My colleagues and I have already secured an injunction blocking their illegal and reckless attempt to withhold AmeriCorps funding – and OMB and Russell Vought, the administration’s architect of chaos, cannot override that decision or defy Congress’ appropriation. Once again, we must take action to ensure our communities continue to benefit from the vital services AmeriCorps provides.” 

AmeriCorps, an independent federal agency that engages Americans in meaningful community-based service, provides opportunities for more than 200,000 Americans to serve their communities every year. AmeriCorps supports national and state community service programs by funding and placing volunteers in local and national organizations that address critical community needs. Organizations rely on support from AmeriCorps to recruit, place, and supervise AmeriCorps members nationwide.  

The Michigan Community Service Commission (MCSC) received approximately $18 million in grants in 2024 from AmeriCorps, supporting thousands of volunteers across the State. During the 2023-2024 service year, 1,052 AmeriCorps members contributed 618,631 hours of service through MCSC programs. Their efforts:  

Improved 362 acres of parks and public lands; 

• Helped 17,794 individuals receive health services; 
• Provided 63,520 youth with academic support; 
• Supported crime reduction services to 11 precincts in Detroit; and 
• Strengthened 76 organizations through capacity-building services.   

In the 2024-25 service year, AmeriCorps grants support 32 MCSC programs and 3 planning grants across 24 organizations. Terminating AmeriCorps grants would severely impact MCSC’s ability to continue its vital work, including supporting disaster recovery efforts in Northern Michigan following the March 2025 ice storm. 

The lawsuit alleges that OMB has unlawfully withheld from plaintiff states more than $38 million in support intended for specific AmeriCorps programs, across multiple funding streams. For example, OMB appears to have withheld tens of millions of dollars intended for AmeriCorps Senior Companion Programs and Foster Grandparent Programs in plaintiff states, programs that pair low-income seniors with children in need of mentorship and support or with other seniors in need of companionship and care. The administration has also withheld approximately $5 million intended for plaintiff states’ service commissions, which was needed to provide training and technical assistance to service members across the country. And while AmeriCorps decided to fund numerous programs in plaintiff states with more than $33 million in highly competitive grants for the next service year, OMB is preparing to withhold these funds from distribution as well.    

The coalition establishes that the Trump administration has acted unlawfully in its withholding of AmeriCorps funds, violating both the Administrative Procedures Act and the separation of powers under the U.S. Constitution. Congress created AmeriCorps and appropriated funding to support public service, and neither OMB nor AmeriCorps hold authority to defy Congress by refusing to distribute funds to worthy service programs.    

In filing this lawsuit, Attorney General Nessel is joined by the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Colombia, Hawai‛i, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, and the governors of Kentucky and Pennsylvania.

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