Congress scrutinizes AmeriCorps after eighth consecutive failed audit and rising contract costs

The U.S. House Committee on Education and the Workforce convened on December 11, 2024, to examine the policies and priorities of AmeriCorps, focusing particularly on the organization's ongoing audit failures. This meeting marked the eighth consecutive year that AmeriCorps has failed to pass its financial audit, raising significant concerns among committee members regarding the accuracy of its financial statements.

The session began with discussions surrounding recommendations from the Government Accountability Office (GAO) related to fraud prevention. AmeriCorps officials reported that they had successfully closed nine out of ten GAO recommendations, with plans to address the final recommendation pending the release of new grant terms. However, questions arose regarding the timeline for achieving a clean audit, with officials acknowledging that while progress had been made, numerous material weaknesses remained.

Committee members expressed frustration over the lack of tangible results from previous investments, particularly a contract aimed at upgrading AmeriCorps' IT systems, which has reportedly exceeded its budget by over $18 million. Concerns were raised about the management of this contract, including the absence of technical experts during critical phases of oversight. The committee highlighted a pattern of incompetence in AmeriCorps' handling of its financial operations, with one member labeling the situation as indicative of systemic failures.

The discussion also touched on the broader implications of AmeriCorps' financial mismanagement, with committee members questioning the organization's return on investment given its history of improper payments and fraud. Instances of fraud in various AmeriCorps programs were cited, underscoring the urgency for reform. One member went so far as to call for the elimination of AmeriCorps, arguing that continued funding would only perpetuate waste and abuse.

As the meeting concluded, the committee acknowledged the need for further scrutiny of AmeriCorps' financial practices and the importance of ensuring accountability for taxpayer dollars. The session underscored the ongoing challenges faced by the organization and the critical need for effective oversight and reform to restore public trust.