A sweeping overhaul is underway at a prominent federal volunteer service agency, as approximately 75% of its full-time workforce—about 535 out of 700 employees—have been placed on administrative leave. This dramatic move is part of a broad initiative to streamline operations and reduce the size of the federal workforce.
In anticipation of the staffing shakeup, youth volunteers aged 18 to 26, involved in community service programs, were pulled from their field assignments. Additionally, contracts valued at nearly $250 million were abruptly terminated, signaling a significant scaling back of agency activities.
Despite the upheaval, insiders say the agency plans to relaunch under a restructured model aimed at boosting efficiency and fiscal responsibility.
Founded in the early 1990s as a national volunteer initiative, the agency has traditionally received close to $1 billion in public funding annually. However, its legacy has been marred by persistent oversight failures. The agency has failed eight of its last ten annual audits, with a recent Inspector General report pointing to ongoing management problems, weak fraud detection, and a backlog of 78 unresolved audit recommendations.
As the agency charts a new course, officials emphasize that the upcoming operational changes are designed to enhance accountability and improve overall performance—though the final form and mission of the agency remain under careful review.
