Congress, OMB Won't Deliver on Bush's AmeriCorps Promises

Despite rhetorical support for AmeriCorps from the Bush administration, Congressional Republicans and the Office of Management and Budget have effectively halved the number of AmeriCorps volunteers for this year. In the wake of the September 11, 2001, attacks, Bush issued a call for national service, and promised to increase the number of AmeriCorps volunteers from 50,000 to 75,000 in his 2002 State of the Union address. Now, however, AmeriCorps is facing a severe fiscal crisis that could not only halt the enrollment of new volunteers, but also cut the program to 26,000. Despite the promises of the Administration, Congress only approved a $35 million increase in AmeriCorps funding as part of the FY 2003 omnibus appropriations bill (funding the program at $275 million, up from $240 million). Of this funding, Congress mandated that $100 million be used to repay money taken by AmeriCorps from the trust fund of educational grants given to each volunteer, which was used to pay for living stipends following a higher than expected volunteer enrollment in the previous two years. In January, OMB accused AmeriCorps of using "Enron-like accounting" in using education trust fund moneys for living stipends and insisted that the trust fund be repaid. OMB did not request additional funds from Congress to repay the trust fund, deciding instead to withdraw funds from this year's appropriation. This situation has effectively cut AmeriCorps funding by 30%. In addition to effectively cutting funding, the appropriations bill also imposed a cap on membership, so that even if funding is somehow found, the program cannot recruit more than 50,000 volunteers for the current year, far short of the 75,000 Bush promised in 2002. Critics have complained that the administration could have used its clout in Congress to increase funding in order to both pay back the education trust fund and increase current enrollment, but acquiesced to the wishes of Congressional conservatives, who have been vocal critics of AmeriCorps since its inception under the Clinton Administration. While it is unlikely that the 50,000 volunteer cap for this year will be removed, Sandy Scott, a spokesperson for the Corporation for National Service (AmeriCorps' parent organization) has said that the number of volunteers for this year would eventually reach last year's 50,000 level, but he has not said how this will be accomplished, given the funding crunch.
back to Blog