Learn and Serve America Bill Guarantees $40 Million Annually, Shifts School Funding to Competitive Grants

The aptly named Learn and Serve America Reinvestment Act is essentially a major funding boost and a structural overhaul for the national service-learning program. Starting in fiscal year 2026, the bill guarantees an additional $40 million every year for the Learn and Serve America program, ensuring a dedicated stream of cash for projects that combine community service with classroom learning. That money isn’t just coming from the general budget; it’s a direct appropriation from the Treasury, signaling a long-term commitment to the program. Beyond the cash infusion, the bill also allocates funds to hire at least 10 new full-time staff at the Corporation for National and Community Service, specifically to handle program design and technology upgrades, giving the program some much-needed administrative muscle.

Who Gets a Seat at the Table?

One of the biggest changes in the bill is who gets to participate and manage the funds locally. The legislation officially recognizes "local educational agencies"—that’s your everyday school district—as eligible entities. This means local schools, or even a group of them, can now directly apply for grants, potentially cutting out some of the bureaucratic layers. Furthermore, state educational agencies gain flexibility, allowing them to delegate grant management responsibilities to experienced statewide groups, such as non-profits or the State Commission on National and Community Service. For a parent, this means that service-learning programs, like high schoolers tutoring younger kids or cleaning up a local park, could become more common and better funded in their local school district, rather than relying solely on state-level initiatives.

The Shift to Competitive Grants

The funding mechanism itself is undergoing a significant change, and this is where existing recipients need to pay attention. Currently, funding is often distributed through fixed "allotments," meaning states or entities receive a predictable slice of the pie. However, starting in FY 2026, the bill changes this system to "competitive awards." While the $40 million is guaranteed, the Corporation will award the bulk of it competitively to state educational agencies, territories, and Indian tribes. For organizations that previously relied on predictable funding, this shift means they will now have to compete head-to-head for grants, potentially increasing uncertainty but also, theoretically, rewarding the most effective programs. The bill does carve out a specific set-aside, requiring the Corporation to reserve between 2 percent and 3 percent of the total funds specifically for the Bureau of Indian Affairs, ensuring those programs maintain targeted funding.

Following the Money

To keep things transparent, the bill institutes new annual reporting requirements. The Corporation must now submit a report every year to Congress detailing exactly what percentage of the funding went to each type of recipient—whether it was a local school district, a statewide non-profit, or a tribal organization. Crucially, the report must also explain how those groups used the grant money. This is good news for taxpayers and anyone interested in accountability, as it means we should get a clearer picture of where the money is going and what kind of impact it’s actually having on the ground. The bill also mandates how the annual $40 million must be spent internally: at least 20 percent must go to Part I activities (which generally covers state-level administration and training) and at least 80 percent must be used for Part II activities (which funds the actual local service-learning projects themselves).