Promoting National Service and Reducing Unemployment Act

This bill amends the National and Community Service Act of 1990 to significantly expand federal national service programs, such as AmeriCorps. It requires these programs to add at least 500,000 new participant positions and permanently increases participant living allowances as well as the maximum federal spending allowed per participant.

* **National service participants:** Individuals serving in federal national service programs (like AmeriCorps) will receive higher living allowances. * **National service organizations and federal agencies:** Programs administering federal national service must raise participant pay, implement annual inflation adjustments, and adhere to a new formula for federal cost limits per member. * **Prospective service members:** People seeking to join national service programs will have access to at least 500,000 additional funded positions.

* **Living Allowance Increase:** Programs must provide participants with a living allowance set at 200 percent of the federal poverty line (adjusted for family size based on Office of Management and Budget guidelines). * **Inflation Adjustments:** Beginning after 2027, living allowances must be adjusted annually for inflation using the Department of Labor’s Consumer Price Index for All Urban Consumers (CPI-U). * **Federal Spending Cap per Member:** The bill removes the fixed federal spending limit of $18,000 per full-time participant position and replaces it with a dynamic cap equal to 125 percent of the minimum full-time participant living allowance. * **Expanded Positions:** Federal national service programs must add at least 500,000 approved positions for fiscal year 2027.

* **Fiscal Year 2027 Appropriations:** The bill authorizes and appropriates "such sums as necessary" for the fiscal year ending September 30, 2027. Because it uses open-ended language ("such sums as necessary"), the exact total dollar cost is not specified. * **Purpose of Funds:** These funds are dedicated to covering the costs of adding at least 500,000 new positions and paying for the increased participant living allowances.

* **Federal Cost Ceiling:** Federal funding per full-time equivalent position is capped at 125 percent of the minimum full-time living allowance. * **Timing of Adjustments:** Annual inflation adjustments for living allowances do not begin until after 2027. * **Unclear Rules:** Specific individual eligibility requirements for the new service positions are not detailed in the provided summary.

This bill would largely expand federal national service programs like AmeriCorps in fiscal year 2027 by funding at least 500,000 new positions, doubling participant living allowances relative to the federal poverty line, and tying future participant pay to inflation.