Washington, D.C. — House Republicans are demanding answers after new revelations suggest AmeriCorps, one of the largest federal civil service agencies, may have mishandled a staggering $144 million from President Biden’s American Rescue Plan — after Congress had already ordered the funds returned.
The GOP-led House Education and Workforce Committee, under Chairman Tim Walberg (R-Mich.), is calling for an urgent Government Accountability Office (GAO) investigation. At the center of the scandal is the Biden administration’s reckless spending spree that critics say has resulted in widespread taxpayer abuse.
“Given the Inspector General’s alarming findings, I am deeply concerned that AmeriCorps improperly obligated rescinded funds and may have violated the Antideficiency Act,” Walberg wrote to U.S. Comptroller General Gene Dodaro.
AmeriCorps had already been under scrutiny for failing eight consecutive financial audits. Despite these failures, the agency — which received a $1 billion handout from Biden’s $1.9 trillion COVID-19 stimulus package — insisted it was “obligated” to spend the clawed-back funds. Walberg and other fiscal conservatives aren’t buying it.
Biden-Era Waste Continues to Surface
AmeriCorps’ leadership refused to initiate an independent GAO review, dismissing watchdog concerns by claiming their practices followed “relevant laws and policies.” Yet the Inspector General strongly disagreed, warning that the agency’s actions could lead to inaccurate financial reporting to Congress and the public.
Meanwhile, AmeriCorps is in turmoil. Following a government review, most employees were placed on administrative leave last week. Volunteers from the agency’s National Civilian Community Corps (NCCC) program were abruptly sent home earlier this month, signaling deeper dysfunction inside the Biden-era agency.
As of now, only about 15% of AmeriCorps’ workforce remains active, according to the Associated Press.
Taxpayer Dollars Wasted at an Alarming Rate
AmeriCorps operated with a bloated $1.2 billion budget for fiscal year 2024, staffing over 500 full-time federal employees. Even before this latest controversy, a 2017 Inspector General report had slammed the agency’s inefficiency, revealing that services provided by AmeriCorps volunteers cost four to eight times more than similar services elsewhere.
The report found that a ten-month AmeriCorps service term cost nearly $30,000 per volunteer — more than a full year’s tuition, room, and board at a public university. Yet despite massive taxpayer investments, AmeriCorps programs showed no better long-term outcomes than far cheaper alternatives.
Republicans Fight Back Against Government Mismanagement
This unfolding scandal highlights a troubling pattern of federal government mismanagement and wasteful spending under President Biden’s watch. Conservatives are demanding immediate accountability — not just at AmeriCorps, but across all bloated government agencies funded by reckless stimulus packages.
Walberg and other fiscal hawks are determined to hold AmeriCorps and the Biden administration responsible for this taxpayer betrayal.
“The American people deserve transparency, not another cover-up of Biden-era waste,” Walberg stated.