ACTION for National Service Act
- Sponsor
- Rep. Larson, John B. [D-CT-1]
- Committees
- Ways and Means Committee (primary)
- Last action
- Mar 12, 2026
Bottom line
The ACTION for National Service Act aims to elevate, expand, and financially enhance national service programs by restructuring AmeriCorps into a federal agency and boosting participant benefits and outreach.
What it actually does
This bill transforms the Corporation for National and Community Service into an Executive department called the AmeriCorps Administration, headed by a Director with Cabinet-level rank. It significantly increases national service educational awards and living allowances, establishes a National Service Foundation for private fundraising, and creates an outreach program to inform young adults about service opportunities with a goal of reaching 1,000,000 participants annually by 2036. It also makes national service educational awards and living allowances tax-exempt.
Proponents argue
Proponents argue that elevating AmeriCorps to an Executive department will enhance its visibility, influence, and ability to coordinate national service efforts across government. They contend that increased educational awards and living allowances are essential to attract a broader and more diverse pool of participants, making national service a more viable option for young people and seniors. The outreach program and ambitious participation goals are seen as crucial steps to foster a culture of service and address pressing community needs. Tax exemptions for benefits will further incentivize participation.
Opponents contend
Opponents might express concerns about the increased federal spending associated with higher allowances and awards, especially given the ambitious goal of 1,000,000 participants. They may question the necessity of elevating AmeriCorps to an Executive department, arguing it could lead to increased bureaucracy or politicization of service programs. Some might also raise concerns about the potential for federal overreach in promoting service or the impact of tax exclusions on federal revenue without clear offsets.
The bill is moderately complex due to its extensive structural and conforming amendments, requiring a dedicated read to grasp its full implications, which may exceed the time typically allotted for quick legislative review.
Section 3
Establishes AmeriCorps Administration as an Executive Department
This section renames the Corporation for National and Community Service as the "AmeriCorps Administration" and elevates its status from a Government corporation to an Executive department, similar to Cabinet-level agencies. It also adds the AmeriCorps Administration to the list of Executive departments in Title 5 of the U.S. Code.
Supporters argue
Supporters argue that elevating AmeriCorps to an Executive department will give national service programs greater visibility, influence, and a stronger voice within the federal government, enabling better coordination and resource allocation.
Critics contend
Critics might argue that this change could lead to increased bureaucracy and administrative costs without a clear demonstration of improved program effectiveness, or that it might politicize an organization traditionally focused on community service.
Tradeoffs
The tradeoff is between increased federal prominence and potential for greater bureaucratic overhead or political entanglement.
Section 4
Restructures Governance with an Advisory Board
This section replaces the existing Board of Directors with an Advisory Board. Initially, it comprises former voting members of the Board of Directors who elect to serve, supplemented by Administrator appointments to reach seven members. Subsequent appointments are made by the President and congressional leaders for 5-year terms. The Board's role shifts from governing to advising the Director on policies, programs, and strategic goals, meeting four times annually.
Section 5
Establishes Cabinet-level Director and Expands Authority
This section establishes a Director for the AmeriCorps Administration, who holds the same rank and status as a Cabinet Secretary. The initial Chief Executive Officer of the former Corporation can serve as the first Director. The Director's duties are expanded to include making grants and contracts with federal and other public/private entities for volunteer assignments and program support, ensuring compliance with national service laws.
Section 6
Doubles National Service Educational Award Amounts
This section amends the National and Community Service Act of 1990 to significantly increase the national service educational award. Instead of a fixed amount, the award will now be equal to twice the national average of yearly in-State tuition and fees at public, 4-year institutions of higher education for the relevant award year.
Section 8
Creates a National Service Foundation for Private Fundraising
This section establishes a new charitable and nonprofit corporation called the National Service Foundation. Its purpose is to accept and administer private gifts, devises, or bequests of real and personal property to benefit the AmeriCorps Administration, its activities, services, or former participants. The Foundation will have a Board, including the Director as Chairman, and non-federal members appointed by the Director, serving without compensation. It is authorized initial funding of $2,500,000 for fiscal year 2027 and is tax-exempt.
Section 9
Establishes Outreach Program for National Service
This section creates the "21st Century American Service Outreach Program." The AmeriCorps Administration is mandated to work with federal/state agencies to contact every individual between ages 17 and 30 on their 17th birthday, and every two years thereafter (unless opted out or already serving), to inform them about national service opportunities (including Peace Corps and military service) and how to apply. The program also requires developing a long-term strategy to increase service positions to meet demand.
Section 10
Increases Living Allowances for National Service Participants
This section significantly increases living allowance amounts for participants in various national service programs. For Domestic Volunteer Service Act programs, the allowance minimums are raised from 95% to 175% of the poverty line for a single individual, and maximums from 105% to 210%. For National Civilian Community Corps, the allowance is raised from 100% to 200% of the poverty line. Grant limits for full-time equivalent positions are also increased from $18,000 to $30,000 (and $19,500 to $39,000 in another instance). These increases are contingent on sufficient appropriations to maintain current participant levels.
Section 11
Authorizes Appropriations and Sets 10-Year Participation Goal
This section authorizes appropriations for national service programs and educational awards, aiming to maintain fiscal year 2026 participant levels. Crucially, it sets a "sense of Congress" goal to provide or facilitate national service programs for not fewer than 1,000,000 participants per year by September 30, 2036, in addition to current levels. The Administration is required to prepare a plan to reach 250,000 approved positions by FY2027 and gradually increase to support the 1 million goal by FY2036, with reports to Congress.
Amends the Internal Revenue Code of 1986 to exclude national service educational awards from gross income and from being considered as discharge of student loan debt for tax purposes.
Section 13
Why it matters:Standard legislative practice to place tax code amendments in a dedicated section, but its location late in the bill might make it less prominent.
Case for: Supporters argue this makes the educational award a more valuable and straightforward benefit, removing a potential tax burden that could diminish its incentive effect.
Case against: Critics might argue that this reduces federal tax revenue without a clear offset, adding to the deficit, and that all income, regardless of source, should be subject to taxation.
Estimated impact: Reduces federal tax revenue by an amount corresponding to the total value of educational awards, which will increase significantly with higher award amounts and more participants.
Amends the Internal Revenue Code of 1986 to exclude the amount of any living allowance provided under the National and Community Service Act of 1990 from gross income.
Section 14
Why it matters:Standard legislative practice, but its placement could lead to it being overlooked.
Case for: Proponents argue that living allowances are often minimal and intended to cover basic costs during service, not to generate taxable income. Excluding them from gross income further incentivizes participation and eases the financial burden on participants.
Case against: Opponents might argue this represents another reduction in federal tax revenue and that all forms of compensation, including living allowances, should be subject to income tax.
Estimated impact: Reduces federal tax revenue by an amount corresponding to the total value of living allowances, which will increase significantly with higher allowance amounts and more participants.
These sections make extensive conforming amendments across the National and Community Service Act of 1990, the Domestic Volunteer Service Act of 1973, and numerous other federal laws (e.g., Civil Service Retirement, Inspector General Act, Homeland Security Act, Social Security Act, Older Americans Act). They systematically replace "Corporation for National and Community Service" with "AmeriCorps Administration" and "Chief Executive Officer" with "Director."
Sections 15, 16, 17
Why it matters:Standard legislative practice for re-organization bills to ensure all statutory references are updated, but the sheer volume makes it a "buried treasure."
Case for: Essential for legal clarity and consistency, ensuring that the new AmeriCorps Administration and its Director are properly recognized across the entire federal legal framework.
Case against: No direct opposition to the technical changes themselves, but they underscore the breadth of the organizational restructuring.
Estimated impact: Ensures legal and administrative consistency for the new agency structure across the entire U.S. Code.