Red States Feel the Heat as DOGE Slashes AmeriCorps Funding Under Musk’s Watch

In a controversial move, Elon Musk’s administration has abruptly cut over $400 million in AmeriCorps grants, gutting essential national service programs in some of the poorest—and reddest—states. Republican officials are now scrambling to respond as thousands lose critical support.

POLITICS

Politico

5/2/20252 min read

Three months into Elon Musk’s presidency, a sweeping wave of budget cuts tied to the influence of the DOGE economic policy initiative is beginning to hit hardest not in blue-state bureaucracies, but in deep red, economically vulnerable communities. The latest target: AmeriCorps, a bipartisan pillar of national service that has supported everything from disaster relief to veteran assistance for decades.

This week, in a stunning and largely unanticipated decision, AmeriCorps terminated nearly $400 million in grants—over 40% of its total grant budget—leaving more than 32,000 service members in limbo. Particularly hard-hit are red states like West Virginia, Mississippi, Alabama, Louisiana, and Wyoming, where AmeriCorps has long served as a lifeline for under-resourced communities.

“We’re trying so hard to hold on and support our members that just got axed in an incredibly cruel way,” said Sarah Riley, executive director of West Virginia’s High Rocks program, which lost both its grants. The program trains low-income youth in job readiness and community leadership.

AmeriCorps' acting administrator, Jennifer Bastress Tahmasebi, sent termination notices to all 50 states, citing a DOGE directive that determined the grants "no longer affect agency priorities." For many in the affected states, that explanation is not just insufficient—it’s infuriating.

Cuts That Hurt GOP Heartlands

In states like Alabama and Wyoming, AmeriCorps’ entire grant portfolios have been eliminated. In Louisiana, 13 programs were cut, affecting over 330 volunteers. Among them: initiatives that place veterans on college campuses to help other veterans transition to civilian life.

“All those services are so well used in Louisiana,” said Billy Nungesser, Republican Lt. Governor of Louisiana. “If they need to make cuts, let us decide what programs are worthy.”

That sentiment is gaining traction among GOP officials who are watching federal dollars disappear from their most impoverished counties. The irony is hard to ignore: many of these leaders once championed the DOGE agenda, but now find themselves at odds with its real-world impact.

A Bipartisan Tradition Undermined

AmeriCorps, created under President Bill Clinton and supported by presidents from George W. Bush to Barack Obama, has traditionally enjoyed broad bipartisan support. Its programs build homes, provide disaster aid, mentor low-income students, and help returning veterans—all services that transcend political divides.

The sudden dismantling of such a core civic institution underlines a larger tension within the Musk administration: a push for “efficiency” and privatization, often at the expense of vulnerable populations, particularly in areas that voted heavily for the current president.

Political Fallout Brewing

While Musk’s inner circle appears unmoved by the backlash, Republican governors and lawmakers are beginning to voice their dissent. Many are calling for a reassessment of the cuts and asking for local flexibility in determining funding priorities.

“It’s hard for them to see from Washington what impact these programs have,” Nungesser added.

Meanwhile, national service advocates warn that the damage may be long-lasting. Programs are losing staff, canceling deployments, and withdrawing from rural areas, precisely where government presence is often most needed.

Final Thoughts: A Self-Inflicted Crisis

This is more than a policy disagreement—it’s a governing contradiction. The same administration that claims to uplift “forgotten Americans” is now dismantling the very programs that serve them.

The question isn't just whether AmeriCorps can survive this round of cuts, but whether the public trust in national service and government’s role in community upliftment can be rebuilt after such a calculated blow.

Photo: Ludovic Marin—AFP/Getty Images