In a statement on Monday, USA Rugby said the impact of COVID-19 has accelerated existing financial issues after voting to file for chapter 11 bankruptcy.
USA Rugby suspended sanctioned competition and rugby activities indefinitely on March 20 due to the coronavirus crisis.
The American union will undergo a restructuring process with input from World Rugby, while the United States' men's and women's senior national teams will continue to compete as normal when the sport returns.
"This is the most challenging period this organisation has faced and all resolves were never taken lightly in coming to this determination," said USA Rugby Chair Barbara O'Brien.
"While the current climate is of course much larger than rugby, we remain focused with stakeholders and supporters in the continued effort toward a balanced rugby community where the game can truly grow."
Globally, there have been over 37,700 deaths and at least 784,380 confirmed cases.
In the United States, more than 3,100 people have succumbed to the virus, with over 163,400 cases.