Today, Education and Workforce Committee Chairman Tim Walberg (R-MI) sent a letter to Comptroller General Gene Dodaro requesting the Government Accountability Office investigate whether AmeriCorps violated the law when managing American Rescue Plan(ARP)Act funds.
The letter follows the Committee’s December hearing, during which AmeriCorps was labeled as a poster child for waste, fraud, and abuse in the federal government. More recently, the letter follows action by the Trump administration to streamline the agency after decades of mismanagement.
In the letter, Chairman Walberg writes: “AmeriCorps received $1 billion of ARP funding to supplement its annual appropriation, most of which was to remain available until September 30, 2024. The Fiscal Responsibility Act, enacted June 3, 2023, rescinded all AmeriCorps ARP funding that was unobligated as of that date. The AmeriCorps Office of Inspector General recently issued a management alert outlining its concern that the agency’s interpretation and recording of grant obligations may have resulted in the improper obligation of up to $144 million in ARP funding after the June 3 rescission date.”
The letter continues: “The Inspector General notes that obligations made after funds were rescinded may constitute an Antideficiency Act violation and emphasizes that ambiguity about the proper obligation and recording dates gives rise to potentially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.’”
The letter concludes: “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General’s analysis, I am concerned that AmeriCorps may have improperly recorded its grant obligations, obligated rescinded ARP funds, and violated the Antideficiency Act or other fiscal laws. Unfortunately, a lack of financial accountability is a longstanding problem for AmeriCorps, as evidenced by its eight consecutive failed audits. … I am therefore requesting a legal decision regarding ‘the point in time at which obligation occurs within AmeriCorps’ grant process and whether AmeriCorps obligated rescinded ARP funds by issuing Notices of Grant Award after June 3, 2023.’”
AmeriCorps has a long history of abusing taxpayer dollars. It is entrusted with over $1 billion of taxpayer funds every year, but AmeriCorps has failed eight consecutive audits.
In 2023 the AmeriCorps Office of Inspector General issued a “Management Challenges” report detailing significant challenges AmeriCorps faces. This includes being unable to detect fraud. We have no real idea when AmeriCorps will be able to have a clean audit again. In fact, last year’s audit included 78 recommendations still open, even after AmeriCorps said it addressed 20.
While many of AmeriCorps’ programs are well-intentioned, the agency has always had problems—significant problems. Too often this program has been a drain on taxpayer funds—with fewer and fewer results to show it is worth the cost.
Our country is known for its robust civil institutions. The U.S. is often ranked as the most generous country in the world when it comes to money donated and time given to charity. Americans don’t need Uncle Sam telling them to do what they already naturally do.
