HR7910-119

What This Bill Does

The ACTION for National Service Act replaces the Corporation for National and Community Service with an AmeriCorps Administration organized as an executive department. Its Director becomes the department head with cabinet rank. The existing governing board transitions into a seven-member Advisory Board whose role is to advise rather than approve agency actions. The President appoints three members, including representatives of younger participants and older service programs, and congressional leaders appoint four. The Board must recommend policies, grants, personnel practices, research, Foundation candidates, and annual legislative changes.

The Director may make grants, contracts, cost-sharing arrangements, and interagency or nonprofit agreements to recruit volunteers and support national service. The bill doubles the national-service educational award to twice the national average annual in-state tuition and fees at public four-year institutions. An interagency working group must examine whether other service programs should qualify for awards and whether participants should receive Federal hiring preference.

The bill creates the National Service Foundation, a charitable nonprofit corporation that may solicit and manage gifts for AmeriCorps activities, services, and former participants. Its board includes the Director as nonvoting chair and at least six non-Federal members. The Foundation is tax-exempt, may use Administration facilities where practicable, must report annually to Congress, and receives an authorization, but not a direct appropriation, of $2.5 million for fiscal year 2027 startup costs. The United States is not liable for Foundation debts, and board members are personally liable only for malfeasance.

A new outreach program covers people ages 17 through 30. The Administration must plan to notify each person at age 17 about national, Peace Corps, and military service opportunities and continue notifications every two years unless the person is already serving or opts out. It must streamline applications and develop a long-term strategy under which every eligible applicant can be offered at least one national-service position.

The bill increases statutory living-allowance percentages and raises two per-position grant limits from $18,000 to $30,000 and from $19,500 to $39,000. The increases apply only to the extent appropriations are sufficient to preserve at least the prior year's participant or position count; otherwise the Director must provide the largest increase consistent with that safeguard.

For fiscal years 2027 through 2036, the bill authorizes sums necessary to maintain the fiscal year 2026 participant level in specified programs. It both authorizes and directly appropriates, beginning in fiscal year 2027, sums necessary for educational awards tied to the fiscal year 2026 obligation count. It authorizes additional sums toward a nonbinding goal of one million annual participants by September 30, 2036. The Administration must plan for 250,000 approved positions in fiscal year 2027, increase positions through 2036 subject to appropriations and quality opportunities, and issue progress reports.

National-service educational awards and covered living allowances are excluded from gross income. The Director must report within 90 days on changes to matching requirements needed for expansion in underserved communities. The remaining provisions conform the national-service statutes and other laws to the new Administration, Director, Advisory Board, and Foundation terminology.

Who Benefits and How

National-service participants gain larger educational awards, potentially higher living allowances, and income-tax exclusions. Young adults receive recurring information and a streamlined route to service positions. Program sponsors and nonprofits may gain grants, contracts, and a larger participant pool. Underserved communities may gain more service placements. Foundation donors gain a tax-exempt channel supporting AmeriCorps programs.

Who Bears the Burden and How

The AmeriCorps Director and Administration must manage an executive department, grants, outreach, staffing growth, position plans, reports, and tax-related data. Advisory Board members, interagency working-group agencies, and Foundation directors receive recurring governance duties. Service sponsors may need additional matching resources unless Congress changes the rules. Federal taxpayers finance direct educational-award appropriations, future program appropriations, higher allowances, and tax exclusions.

Key Provisions

• Reorganizes AmeriCorps as an executive department.
• Converts the governing board into a seven-member Advisory Board.
• Gives the Director grant, contract, and volunteer-recruitment authority.
• Doubles the national-service educational award formula.
• Establishes a charitable National Service Foundation.
• Requires recurring service outreach to people ages 17 through 30.
• Raises living-allowance percentages and per-position grant limits.
• Conditions compensation increases on preserving participant counts.
• Directly appropriates sums necessary for a baseline number of educational awards.
• Plans for 250,000 positions in 2027 and a one-million-participant goal by 2036.
• Excludes educational awards and living allowances from gross income.
• Requires matching-funds and program-growth reports.
• Conforms national-service statutes to the new agency structure.