Update on the Fiscal Responsibility Act


Office of the Chief Executive Officer
July 18, 2023

Update on the Fiscal Responsibility Act

Dear AmeriCorps grantees, sponsors, and stakeholders,

Over the past several weeks, the agency has been working through the impacts of the Fiscal Responsibility Act, which was signed by President Biden to avert an unprecedented default on the federal government’s debt. To fulfill our mission, AmeriCorps prioritized obligating and awarding American Rescue Plan Act funds, and staff across the agency worked tirelessly to deliver funding to communities. Thank you for your partnership and patience during this uncertain time.

Today, I want to share what we know about the impacts of this legislation on AmeriCorps:  

  • Total impact: A total of $70 million will be rescinded from the agency, which would have supported approximately 5,000 AmeriCorps members through the fiscal year 2024 grant and award making process.
  • AmeriCorps VISTA: A total of $37 million, intended to support living allowances in FY 2024, will be rescinded. Due to this cut, AmeriCorps VISTA will not host a summer associate program in FY 2024 and anticipates funding 500 fewer full-year member service years in FY 2024 than in FY 2023 (pending FY 2024 appropriations).  
  • AmeriCorps State and National: A total of $28 million, which was expected to be used in for competitive grant funding in FY 2024, will be rescinded. This will reduce the number of AmeriCorps State and National positions funded in FY 2024 by approximately 2,500 AmeriCorps members.
  • AmeriCorps Seniors: A total of $3.7 million, which would have supported the agency’s investment in the AmeriCorps systems modernization efforts, an Office of Research and Evaluation program focused project, and training and recruitment initiatives, will be rescinded from AmeriCorps Seniors.
  • AmeriCorps NCCC: There will be no impact, as this program was not funded through ARP. 

Finally, the agency continues to work with our partners at the US Department of Health and Human Services and the Centers for Disease Control and Prevention to understand the impact of their rescinded funds on the Public Health AmeriCorps interagency partnership. This will not impact FY 2023 awards.  

While the impact of this recission is significant and will be painful for our members, grantees, the communities they serve and all of us, AmeriCorps’ mission continues – we will continue to be the largest funder of national service in the country and our members and volunteers will continue to support critical work in communities across the country, reaching millions of individuals in greatest need.

Thank you for your unwavering commitment to our mission during times of challenge and triumph. Let’s keep getting things done for America.   

Michael D. Smith, CEO