Learn and Serve Program Gets $40 Million Boost: School Districts Now Eligible for Service-Learning Funds

The “Learn and Serve America Reinvestment Act” is all about putting serious, long-term money into service-learning programs across the country. Think of it as a significant upgrade for the federal program that helps connect classroom learning with community service projects. Starting in fiscal year 2026, the bill mandates an extra $40 million be set aside every year for the Learn and Serve America program—money that’s added on top of whatever the program usually gets. This isn’t a one-time boost; it’s a permanent reinvestment. On the administrative side, the bill also greenlights the hiring of at least 10 new full-time staff at the Corporation for National and Community Service, specifically to handle program planning and technology improvements, which is crucial if you’re going to manage a bigger budget and more complex programs (SEC. 2).

Opening the Doors to Local School Districts

One of the biggest practical changes is who can actually get this money. The bill explicitly updates the eligibility rules to include “local educational agencies,” which is just policy-speak for public school districts. Before this, state education departments often had to funnel the money, but now the school districts themselves can be considered eligible entities. For a high school principal trying to launch a mandatory community service program, this could mean direct access to federal funding rather than waiting for state bureaucracy. State Educational Agencies (SEAs) still have flexibility, though; they can designate experienced statewide groups—like non-profits or community organizations—to manage the funds and run the programs, ensuring the money goes to entities with proven service-learning expertise (SEC. 3).

The Shift to Competitive Grants: Who Wins and Who Loses?

Starting in FY 2026, how the money is handed out changes pretty significantly. The system is moving away from the old “Allotment” structure—which often meant funds were distributed by a formula—and adopting a competitive grant structure for states, territories, and Indian tribes. While this competitive approach is designed to reward the best proposals and ensure funds are being used effectively, it introduces uncertainty for existing recipients. If you’re a smaller organization that previously relied on a predictable, formula-based allotment, you now have to compete against larger, better-resourced state agencies. This competition could mean some long-standing programs lose out, even with the overall increase in funding (SEC. 3).

Dedicated Funding and Accountability

The bill also carves out a specific new requirement for the Corporation: they must reserve between 2 and 3 percent of the total funds for payments to the Bureau of Indian Affairs, ensuring that Native American education programs receive a dedicated slice of the pie. This is a clear move to ensure equitable access. To keep things transparent, the Corporation is also required to send an annual report to Congress detailing exactly what percentage of the funds went to each type of recipient and how they used the grant money. This mandatory annual reporting is a serious check on accountability, making sure that $40 million in new cash is actually delivering results on the ground (SEC. 3).