The GOP-led House Committee on Education & the Workforce is demanding an investigation into whether AmeriCorps misspent $144 million from the Biden-era American Rescue Plan after Congress tried to claw back that funding.
A watchdog at AmeriCorps, one of the largest federal civil service organizations, had raised concerns about the millions, but the agency insisted it was obligated to spend the money in a bid to head off further review.
Now Education Committee Chairman Tim Walberg (R-Mich.) is asking for the Government Accountability Office (GAO) to investigate.
“In light of the Inspector General’s analysis, I am concerned that AmeriCorps may have improperly recorded its grant obligations, obligated rescinded ARP funds, and violated the Antideficiency Act or other fiscal laws,” Walberg wrote in a Thursday letter to US Comptroller Gene Dodaro Thursday.
“Unfortunately, a lack of financial accountability is a longstanding problem for AmeriCorps, as evidenced by its eight consecutive failed audits. This concerns me.”
Last week, most AmeriCorps staff were put on administrative leave following a review from the Department of Government Efficiency (DOGE). The Post previously reported that volunteers in its youth program — the National Civilian Community Corps (NCCC) — were abruptly sent home earlier this month.
An estimated 15% of AmeriCorps staff were still active, the Associated Press reported.
AmeriCorps had a budget of more than $1.2 billion in fiscal year 2024 and more than 500 full-time federal staff, according to its website.
The agency had received a total of $1 billion from the American Rescue Plan, the Biden administration’s $1.9 trillion COVID-19 stimulus package in 2021. Two years later, Congress moved to take back unspent money as part of a deal to raise the debt limit.
The AmeriCorps Office of Inspector General was unconvinced that the $144 million spent after the congressional clawback was due to ironclad obligations.
“The Inspector General notes that obligations made after funds were rescinded may constitute an Antideficiency Act violation and emphasizes that ambiguity about the proper obligation and recording dates gives rise to potentially ‘inaccurate … annual financial statements provided to Congress and the public,’” Walberg noted.
The Antideficiency Act prohibits the feds from making payments that exceed what Congress has authorized.
AmeriCorps declined to press for a GAO investigation into the concerns raised by its watchdog, arguing that its “practices are in compliance with all relevant laws and policies,” Walberg recounted.
Fiscal hawks in Washington have long been skeptical about AmeriCorps.
A 2017 inspector general’s report concluded that the services volunteers provided cost “four to eight times more than the same services” from other programs between 2012 and 2013.
“Each member’s ten months of service costs $29,674 (for FY 2014), more than a year’s tuition, room and board at a public university; for that sum, four individuals could obtain two-year community college degrees,” the report stated.
“Yet, despite this substantial investment, NCCC alumni achieve no better long-term outcomes than alumni of AmeriCorps programs that cost a fraction of that amount.”
