July 1, 1971: When Nixon Folded the Peace Corps Under ACTION

— Lessons from a Historic Reorganization

54 years ago today, the Peace Corps lost its independence and became part of a larger federal volunteer bureaucracy. As the agency navigates contemporary challenges, the lessons from this pivotal reorganization offer valuable insights for understanding institutional resilience.

The Nixon Gambit: Consolidation as Control

On July 1, 1971, President Richard Nixon implemented what he called a "streamlining" of federal volunteer programs, bringing the Peace Corps under the umbrella agency ACTION. This new agency was formed under Reorganization Plan Number One and Executive Order 11603 to provide centralized coordination and administration of government-sponsored domestic and international volunteer agencies.

The consolidation brought together nine separate volunteer programs under one roof, including the Peace Corps, domestic programs from the Office of Economic Opportunity, the Foster Grandparents and Retired Senior Volunteer Programs, and volunteer action clearinghouse functions. The combined agency had a budget of $176 million and oversight of 25,000 volunteers.

Nixon's motivations were complex. As Kennedy's opponent in 1960, Nixon had predicted the Peace Corps would become a "cult of escapism" and "a haven for draft dodgers." The program represented much of what Nixon opposed about Kennedy's legacy — youthful idealism, international cooperation, and liberal approaches to foreign policy.

Joseph Blatchford: The Man in the Middle

Joseph Blatchford, a Nixon appointee who genuinely believed in volunteer service, served as head of the new ACTION agency. He was tasked to "streamline the program, trim its staff, and increase specialization of its volunteers in order to make them more appealing to skeptical foreign governments."

The consolidation came with immediate personnel upheaval. "The loudest and most outraged of political partisanship came in 1971 when Blatchford used an important Peace Corps policy, generally ignored by his predecessor, to terminate nearly one hundred staff members, including twenty-seven country directors. The rule was instituted to ensure that the agency would never suffer the fate of other government bureaucracies: premature calcification resulting from an aged and spent permanent staff."

Crisis and Salvation

By December 1971, the Peace Corps faced an existential threat. Congress passed a bill that slashed the Peace Corps' $82 million operating budget by $10 million, and plans were made to reduce it by half its force, cutting roughly 4,000 volunteers in 15 different countries. The cuts were spearheaded by Representative Otto Passman of Louisiana, nicknamed "Otto the terrible" for his opposition to foreign aid.

In a dramatic turn, Nixon himself intervened to save the Peace Corps. White House Press Secretary Ron Ziegler announced that the President would transfer funds from other programs to allow it to continue operating at full strength, a total of $74.6 million for 1972. Amidst a new enthusiasm for volunteerism demonstrated by a resurgence in applications, none of the 8,000 volunteers had to be removed from their posts.

Kevin O'Donnell, who served as Peace Corps director from 1971-1972, later reflected on this period: "Had the Nixon White House not intervened, transferring funds from other overseas programs to the Peace Corps, the Peace Corps could not have continued without serious repercussions. The effects would have been devastating."

The Path to Independence

The Peace Corps remained under ACTION for over a decade, but subsequent presidents gradually restored its autonomy. President Jimmy Carter, whose mother had served as a Peace Corps nurse at age 70, made the Peace Corps fully autonomous within ACTION through an executive order in 1979. Finally, the International Security and Development Cooperation Act established the Peace Corps as a fully independent agency on February 21, 1982.

Contemporary Challenges and Historical Parallels

Today's Peace Corps faces institutional challenges that echo those of the early 1970s. The agency currently operates without a confirmed director, as administrative transitions often leave key positions unfilled during the appointment process.

Current operational realities mirror some aspects of the 1970s crisis:

Volunteer Numbers: The Peace Corps has experienced significant staffing challenges, with volunteer numbers dropping from a pre-pandemic level of 6,648 to only 3,620 in 2024 — a decline that echoes the staffing reductions threatened during the Nixon era.

Administrative Oversight: As with any administration, federal agencies undergo periodic reviews of operations and efficiency. The Peace Corps, like other agencies, faces ongoing scrutiny regarding its operations and budget allocation.

Evolving Foreign Policy Priorities: Different administrations naturally emphasize different aspects of international engagement, requiring agencies like the Peace Corps to demonstrate their continued relevance and effectiveness.

Institutional Resilience and Bipartisan Support

The Peace Corps' survival of the Nixon reorganization demonstrates the importance of institutional resilience and broad-based support. The agency has historically enjoyed bipartisan backing in Congress, reflecting its non-partisan mission of promoting understanding between peoples.

Congressional support remains strong across party lines, as evidenced by consistent appropriations and reauthorization efforts. Military leaders have also recognized the Peace Corps' value in building soft power and cultural understanding, viewing it as complementary to other foreign policy tools.

Lessons from History

The ACTION period teaches us several key lessons about institutional survival and adaptation:

Presidential Philosophy Varies: Different presidents bring different perspectives on international engagement, but institutional mission can transcend individual administrations.

Congressional Support Matters: The bicameral, bipartisan coalition that saved the Peace Corps in 1971-72 demonstrates the importance of legislative advocacy and cross-party cooperation.

Adaptability Enables Survival: The Peace Corps' ability to evolve its mission while maintaining core values helped it weather the storm of reorganization.

Community Mobilization Works: The sustained support from volunteers, host countries, and advocacy groups proves crucial during periods of institutional challenge.

Looking Forward

As we mark this 54th anniversary of the Peace Corps being placed under ACTION, current volunteers and returned volunteers can draw lessons from this historical experience. The agency has weathered significant organizational changes and emerged with its mission intact. The key factors in this resilience include maintaining strong relationships with Congress, demonstrating clear value to national interests, and preserving the passionate commitment of the volunteer community.

The Peace Corps' mission of promoting world peace and friendship through volunteer service has proven remarkably durable across different political eras and administrative approaches. While each period presents unique challenges, the historical precedent suggests that this mission — and the agency that carries it out — continues to find ways to adapt while maintaining its core commitment to service.

The Peace Corps became fully independent on February 21, 1982, exactly 11 years after being folded into ACTION. That independence, earned through institutional resilience and broad-based advocacy, remains the foundation for the agency's work today.

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Disclaimer: The views, opinions, and perspectives expressed in this newsletter do not necessarily represent or reflect the official policy, position, or views of the Peace Corps agency or the United States government.