Second Federal Judge Orders AmeriCorps to Reinstate Laid-Off Workers and Restore $400M in Funding

BALTIMORE, MARYLAND — A second federal judge has ruled against the Trump administration’s sweeping cuts to AmeriCorps, ordering the federal government to reinstate workers and restore $400 million in funding to nonprofits across the country.

The new ruling by U.S. District Judge Matthew Maddox follows a similar June order by Judge Deborah Boardman, and together, they signal a strong judicial rebuke of the abrupt shutdown of the national service agency earlier this year.

Maddox’s preliminary injunction requires the immediate reinstatement of hundreds of AmeriCorps staff and three displaced service members. It also mandates the return of grants to 14 nonprofits, which had their funding unexpectedly terminated in April.

Cuts Made Without Authority, Judge Says

The court found that the Trump administration and its Department of Government Efficiency (DOGE) acted without proper authority when they moved to eliminate multiple AmeriCorps programs — including the National Civilian Community Corps (NCCC), VISTA, and state-based partnerships.

According to the ruling, about 2,000 NCCC members were terminated, and more than 600 staffers — nearly 85% of AmeriCorps’ workforce — were abruptly placed on administrative leave with layoffs soon after. Plaintiffs argued that the terminations happened without notice or legal justification, and the court agreed.

Judge Maddox concluded that the government failed to follow lawful procedures, causing “irreparable harm” to both nonprofit organizations and the individuals who rely on their services.

“These actions have led to significant disruptions in the delivery of services… including assistance with college applications, teachers in Indigenous school districts, housing for low-income families, and childhood literacy programs,” Maddox wrote.

National Impact and Nonprofit Fallout

The lawsuit was filed on behalf of three AmeriCorps service members, a labor union, and multiple nonprofits. Among those affected were:

• Elev8 Baltimore (Maryland)

• Rainbow Labs (California)

• National College Attainment Network (D.C.)

• Handson Suburban Chicago (Illinois)

• Aspire Afterschool Learning (Virginia)

The cuts had ripple effects across the country, stalling afterschool programs, neighborhood revitalization projects, and college readiness initiatives. Judge Maddox ordered the return of the $400 million in canceled grants and required the federal government to report every two weeks on its progress in reinstating the affected programs.

This decision reinforces Judge Boardman’s June 5 ruling in a related case involving 24 states and Washington, D.C., who sued over the abrupt program terminations.

Do you think national service programs like AmeriCorps are essential for your community? Join the conversation in the comments on SaludaStandard-Sentinel.com.