ACTION for National Service Act
- Bill Number
- S. 4068
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-03-12: Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S1048-1049)
- Last Updated
- 2026-04-30T19:59:03Z
AI-Generated Summary
Purpose of the Legislation
The ACTION for National Service Act aims to restructure and expand national and volunteer service programs in the United States. It replaces the existing Corporation for National and Community Service with a new AmeriCorps Administration to administer these programs more effectively, increase participant numbers, enhance incentives like educational awards and living allowances, and promote broader outreach to encourage youth participation in service activities.
Key Provisions
- Establishment of AmeriCorps Administration: Creates the AmeriCorps Administration as a new Executive department (similar to cabinet-level agencies) to oversee national service programs, replacing the prior independent corporation structure.
- Advisory Board: Establishes a seven-member Advisory Board to advise the Director on policies, program priorities, evaluations, and strategic goals; initial members transition from the old board, with future appointments by the President and congressional leaders, including representation from youth (ages 18-25) and seniors (age 55+).
- Director Appointment and Duties: Appoints a Director with cabinet-level rank to lead the Administration; expands duties to include grants, contracts, and agreements with federal agencies and nonprofits for volunteer programs, ensuring compliance with performance standards.
- National Service Educational Awards: Doubles the value of awards to equal twice the average in-state tuition and fees at public four-year colleges, making them tax-exempt under the Internal Revenue Code.
- Interagency Working Group: Requires a group to evaluate eligibility for awards from non-AmeriCorps programs and explore federal hiring preferences for service completers; must report to Congress within 12 months.
- National Service Foundation: Establishes a nonprofit foundation to accept private gifts, property, and bequests to support AmeriCorps activities; governed by a board including the Director, with tax-exempt status and authority to invest funds.
- 21st Century American Service Outreach Program: Mandates outreach to individuals aged 17-30, notifying them on their 17th birthday and biennially thereafter about service opportunities (including AmeriCorps, Peace Corps, and military options), application processes, and opt-out rights; aims to expand positions to accommodate all eligible applicants.
- Living Allowances and Stipends: Increases allowances for volunteers (e.g., up to 175-210% of poverty line for some programs, $30,000 per full-time position for grants); ties increases to sufficient appropriations to maintain or grow participant numbers without reductions.
- Authorizations and Reports: Authorizes appropriations to sustain and expand programs, with a congressional goal of 1,000,000 annual participants by 2036 (starting from 250,000 positions in 2027); requires plans, progress reports, and a review of matching fund requirements to boost participation in underserved areas; makes living allowances tax-exempt.
- Conforming Amendments: Updates references across the National and Community Service Act of 1990, Domestic Volunteer Service Act of 1973, tax code, and over a dozen other federal laws (e.g., retirement systems, Inspector General provisions) to reflect the new Administration and Director.
Significant Changes to Existing Law
- Structural Shift: Transforms the Corporation for National and Community Service (a government corporation) into the AmeriCorps Administration (an Executive department under title 5, U.S. Code), elevating its status and integrating it more directly into the executive branch.
- Incentive Enhancements: Doubles educational award amounts and significantly raises living stipends (e.g., from $18,000 to $30,000 per position in some grants); introduces tax exclusions for awards and allowances, previously taxable.
- Outreach and Expansion Mandates: Adds a proactive notification system for youth and a long-term plan to scale positions, absent in prior law; eliminates certain old board powers and donation authorities while creating the new Foundation.
- Appropriation Adjustments: Shifts to mandatory funding for educational awards based on prior-year obligations and sets ambitious growth targets, with safeguards against cuts if funds are insufficient.
Potential Impacts
- On Government Agencies: Elevates AmeriCorps to coordinate more seamlessly with other executive departments (e.g., via interagency agreements), potentially increasing federal hiring preferences for alumni and requiring more resources for outreach and evaluations; may strain budgets if expansion goals are unmet due to appropriation limits.
- On Citizens: Expands access to service opportunities for 17-30-year-olds, offering higher financial incentives and tax benefits to attract more participants, especially in underserved communities; could boost education affordability and job skills but depends on funding to avoid displacing existing programs.
- On International Relations: Minor indirect effects through mentions of Peace Corps outreach, potentially increasing awareness of international service options, but the focus remains domestic.
Main Stakeholders Affected
- Service Participants: Youth (17-30) and seniors, who gain enhanced awards, stipends, and outreach; potential for 1,000,000 annual slots by 2036.
- Nonprofit Organizations and Volunteers: Benefit from increased grants, contracts, and Foundation support for program expansion.
- Federal Government and Taxpayers: Agencies face new coordination duties; taxpayers fund expansions and forgo revenue from tax exclusions, balanced by private Foundation contributions.
- Educational Institutions: Indirectly affected as doubled awards (tied to tuition costs) may increase enrollment in higher education among completers.
- Underserved Communities: Targeted for more programs via matching fund reviews, aiming to address local needs like education and poverty.
Notable Legal, Constitutional, or Political Implications
- Legal: Broad conforming amendments ensure consistency across statutes (e.g., retirement, tax, and procurement laws), but tax changes (e.g., exclusions under IRC sections 117 and 108) could face IRS implementation challenges; Foundation's tax-exempt status mirrors other nonprofits but limits expenditures to its resources.
- Constitutional: Establishing a new Executive department via legislation aligns with Congress's Article I powers to organize the executive branch, though it may prompt debates on separation of powers if it expands presidential influence without Senate-confirmed sub-agencies.
- Political: Promotes bipartisan service ideals (sponsored by senators from both parties) to foster civic engagement and national unity; ambitious 10-year expansion goal could spark funding debates in appropriations, emphasizing equity in underserved areas without mandating specific partisan outcomes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (6)
Sen. Coons, Christopher A. [D-DE], Sen. Duckworth, Tammy [D-IL], Sen. Baldwin, Tammy [D-WI], Sen. Blumenthal, Richard [D-CT], Sen. Klobuchar, Amy [D-MN], Sen. Kim, Andy [D-NJ]
Recent Actions
- 2026-03-12: Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S1048-1049)
- 2026-03-12: Introduced in Senate
Bill Versions
- America’s Call To Improve Opportunities Now for National Service Act — issued 2026-03-12 — PDF (51 pages)