Mass grant terminations will not be carried out by AmeriCorps, and large-scale staff cuts beyond those already planned will not be executed as well, according to a settlement involving the federal agency for national service and volunteering and North Carolina.

AmeriCorps, annual recipient of $1 billion in taxpayer dollars without a clean audit since at least fiscal 2016, a year ago was forced by litigation to release previously withheld funds for jobs and grants helping western North Carolina recover from Hurricane Helene. The 54-page settlement terms given Tuesday indicate another win for first-term Democratic Attorney General Jeff Jackson.

The case is known as State of Maryland, et al., v. Corporation For National And Community Service, operating as AmeriCorps, et al. The filing was in the U.S. District Court for the District of Maryland, with Judge Deborah Boardman presiding.

Jackson, in a release, said in part, “AmeriCorps programs are critical to helping communities across our state, including as we continue to rebuild in western North Carolina after Hurricane Helene. This win helps make sure that AmeriCorps members and the organizations they serve have the support and stability they need to do this important work.”

Briles Johnson, executive director of VolunteerNC, said the AmeriCorps programs in the state have more than 600 volunteers serving in “on the ground” roles.

The case North Carolina joined with 23 other states and the District of Columbia is paused through Feb. 1, pending AmeriCorps meeting its commitments. If the agency does not, the states can resume litigation.

U.S. Rep. Virginia Foxx, R-N.C., in 2024 said AmeriCorps has a legacy of "incompetence and total disregard for taxpayer money." She was chairwoman of the House Committee on Education and Workforce at the time, which requested a report showing repeated failed audits and financial management troubles.

Since then, “disclaimer of opinion” has prevailed in audits because of systemic internal control failures and verification of financial records.

"AmeriCorps," Foxx said, "receives an astounding $1 billion in taxpayer funds every year but hasn't received a clean audit for the past seven years. As instances of fraud continue, the agency has proven time and time again incapable of reforming itself and should never be given another opportunity to abuse taxpayer dollars."

North Carolina’s share of the $1 billion, according to previous statements from the governor’s office, is about $13.2 million.

Jackson in April 2025 said eight of 19 AmeriCorps programs and 202 jobs are being lost in the state because of the cuts to the federal program. The litigation says responsibility lies with the Department of Government Efficiency established by second-term Republican President Donald Trump.

Jackson, in a release, said 50 of the 750 volunteers terminated on April 15, 2025, were in North Carolina. Three programs with 84 people employed were impacted 10 days later when AmeriCorps cut federal funds to grant programs that run through the North Carolina Commission on Volunteerism and Community Service.