Peace Corps Modernization Act

This bill updates how the Peace Corps works so more money reaches volunteers, programs match U.S. foreign policy, embassies are more involved, and oversight is stronger. It also creates a clearer path for returned Peace Corps volunteers to join the U.S. Foreign Service.

Key changes:

• Money: Puts a hard cap on overhead at 15% and directs at least 85% of the budget to volunteers, like recruitment, training, and support. Any savings must help send more volunteers overseas.
• Where volunteers serve: The Secretary of State sets country priorities, and the Peace Corps must align its plan with State Department strategies. The agency must notify Congress before starting work in a new country or ending all work in a country.
• Pacific Islands: Requires Peace Corps programs in at least five Pacific Island countries, including Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands, with a briefing due within 90 days on how expansion will happen.
• Embassies: U.S. embassies must support Peace Corps operations. If an embassy withdraws support, the program in that country pauses and Congress is notified.
• Oversight: Peace Corps and State Department inspectors general must coordinate on volunteer oversight.
• Career pathway: Within 180 days, the State Department must create a streamlined route for returned Peace Corps volunteers to apply to the Foreign Service, including mentorship, bonus points in hiring similar to veterans’ preference, and crediting Peace Corps service toward benefits and time-in-service rules.

Who is affected and when:

• Affected: Current and future Peace Corps volunteers, U.S. embassies, and communities where volunteers serve.
• Timing: Pacific expansion briefing due in 90 days; the new Foreign Service pathway must be set up within 180 days after enactment.