The Peace Corps Modernization Act requires the Peace Corps to allocate at least 85 percent of its annual budget directly to volunteers and volunteer-related activities, with no more than 15 percent going to administrative overhead, and directs any savings to expand the number of deployed volunteers worldwide. The bill aligns Peace Corps operations with U.S. foreign policy priorities by requiring the Secretary of State to set country deployment priorities and mandates a specific expansion of Peace Corps programs to at least five Pacific Island nations, including Palau, the Federated States of Micronesia, and the Marshall Islands. Additionally, the legislation establishes better coordination between Peace Corps operations and U.S. embassies, requires congressional notification before starting programs in new countries or ending programs entirely, and creates a streamlined pathway for returning Peace Corps volunteers to join the Foreign Service with enhanced consideration equivalent to veterans' hiring preferences. The bill sets a 90-day timeline for the State Department and Peace Corps to brief Congress on Pacific Island expansion plans and a 180-day deadline for the Foreign Service to establish the new application mechanism for former volunteers.
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