S4068119th CongressWALLET

ACTION for National Service Act

Sponsored By: Senator Reed, Jack [D-RI]

Introduced

Summary

This bill would reorganize the Corporation for National and Community Service into an AmeriCorps Administration and expand national and community service by boosting outreach, pay, and participant targets.

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  • Young people: Establishes a 21st Century American Service Outreach Program to contact each "covered individual" ages 17–30 at their 17th birthday and every two years unless they opt out. It would let eligible young people apply easily and aims to offer at least one position to any applicant.
  • Service participants: Raises statutory living allowances and increases stipends for the National Civilian Community Corps. It would restructure National Service Educational Awards to equal twice the national average in‑state tuition at public 4‑year schools and exclude those awards and living allowances from gross income.
  • Programs and capacity: Converts CNCS into an AmeriCorps Administration led by a Director and seven‑member Advisory Board. It sets a 10‑year goal of 1,000,000 participants by 2036, requires a plan to reach 250,000 approved positions in FY2027, ties pay increases to available appropriations, and creates a National Service Foundation with initial funding of $2.5 million.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 6 benefits, 0 costs, 1 mixed.

No tax on service pay and awards

If enacted, the bill would exclude national service educational awards and related student loan discharge payments from gross income for taxable years ending after enactment. It would also exclude living allowances paid to national service participants from gross income for taxable years beginning after enactment. These exclusions would lower federal taxable income for award recipients and participants, reducing their federal income tax bills.

Higher pay and bigger education awards

If enacted, the bill would raise many statutory stipend and grant rates and increase per‑full‑time‑equivalent grant caps (for example, raising caps from $18,000 to $30,000 and from $19,500 to $39,000). It would set the national service educational award equal to twice the national average in‑state tuition and fees at public four‑year colleges for the award year. Those increases would only be implemented if appropriations are sufficient to preserve prior‑year participant or approved position counts, and the Director must limit increases when funds fall short.

Outreach and easier application for youth

If enacted, the bill would create a 21st Century outreach program for people ages 17 to 30. The Administration would notify each person on their 17th birthday about national service options and let them opt out. If they do not opt out and are not serving, the Administration would send follow-up notices every two years. The program would also make it easier to apply and aim to offer any eligible applicant at least one service position, subject to funding and capacity.

Agency reorganization and leadership

If enacted, the bill would replace the Corporation for National and Community Service with an AmeriCorps Administration. The Administration head would be renamed Director and have the rank of an executive department head. The Director would get clearer authority to make grants and contracts with federal agencies and nonprofits. The bill would also set a new seven‑member Advisory Board with required youth and older adult representation.

Funding goal to reach 1,000,000 slots

If enacted, the bill would authorize "such sums as may be necessary" for FY2027–FY2036 tied to FY2026 participant counts. It would set a congressional goal of at least 1,000,000 participants per year by September 30, 2036. The Administration must plan for 250,000 approved positions in FY2027 and increase positions yearly through FY2035. Any expansion would only happen if Congress provides the needed appropriations and the Administration preserves quality.

Private National Service Foundation

If enacted, the bill would create a tax‑exempt National Service Foundation to accept private gifts to help the Administration and participants. The Foundation would have a board with the Director as an ex‑officio member and at least six nonfederal appointees. Congress would authorize $2,500,000 in initial funding for FY2027, available until spent. The Foundation would file annual reports to Congress.

Study on award eligibility and hiring

If enacted, the Director would set up an interagency working group to study whether people who served in other programs should be eligible for national service educational awards. The group would also study whether award recipients should get a federal hiring preference. The working group must report its findings to Congress within 12 months of enactment.

Sponsors & CoSponsors

Sponsor

Reed, Jack [D-RI]

RI • D

Cosponsors

  • Sen. Coons, Christopher A. [D-DE]

    DE • D

    Sponsored 3/12/2026

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 3/12/2026

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 3/12/2026

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 3/12/2026

  • Amy Klobuchar

    MN • D

    Sponsored 3/12/2026

  • Sen. Kim, Andy [D-NJ]

    NJ • D

    Sponsored 3/12/2026

Roll Call Votes

No roll call votes available for this bill.

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