California Service Corps faces federal audit over $10.8M in questioned costs

Governor Gavin Newsom has sworn in over 10,000 members of the 2026-2027 California Service Corps, a program established in 2019 that has seen more than 50,000 participants to date. The initiative, which Newsom describes as the largest public service program in the nation, provides paid opportunities for individuals to engage in disaster recovery, climate action, hunger relief, and student mentoring.

However, a federal audit commissioned by the AmeriCorps Office of Inspector General has flagged the program for weak oversight. The report identified ineffective monitoring within California Volunteers and questioned $10.8 million in grant costs associated with a nonprofit. Auditors recommended the recovery of nearly $4.8 million in federal funding from CivicWell and the disallowance of $6 million in matching contributions.

The audit noted that inadequate monitoring creates risks of misuse, waste, or fraud. The findings challenge the oversight record of the Governor’s Office of Service and Community Engagement, led by Director Josh Fryday, which manages the agency responsible for these service initiatives.