Governor faces more calls to expanded civil legal services funding
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Over 130 legal organizations and individuals called on Governor Kathy Hochul to allocate an additional $25 million to the IOLA Fund’s spending authority. Photo by Mike Groll/Office of Governor Kathy Hochul
By Noah Powelson
Over 100 bar associations and legal organizations called on the governor to fully invest in a public fund for civil legal services, and warned staff cuts would follow if funding wasn’t secured.
Among the organizations behind the call was the New York City Bar Association, who last Wednesday called on the governor to expand the spending authority of the Interest on Lawyer Account, otherwise known as IOLA. Their call to the governor comes as more than 130 legal organizations and individuals signed an open letter making the same request.
NYCBA said the state’s most vulnerable residents could lose vital legal services if the IOLA Fund, a public legal fund that provides grant funding to legal nonprofits, does not receive the remainder of their requested spending authority.
The IOLA Fund had requested $102.5 million from the governor, which they would use for grant awards to civil legal service organizations during a five-year grant cycle. In the governor’s currently proposed 2027 executive budget, $77.5 million was allocated for the five-year grant cycle while another $3.4 million was allocated for state operations.
NYCBA said that unless the IOLA Fund receives the remaining $25 million they requested, grant awards will significantly diminish and organizations that rely on this funding would likewise have to cut their staff to stay afloat. NYCBA called on Governor Kathy Hochul to issue a 30-day budget amendment granting the additional spending authority.
“We live in a time of tremendous fear and pressure among the most vulnerable in our communities,” NYCBA said in a statement. “New York State must stand up for those who need us most. That includes the full and stable IOLA grantmaking authority and distribution that are an essential component of New York’s civil legal services delivery system and a means of ensuring that low-income New Yorkers continue to receive the assistance they need during a period of unprecedented demand.”
The IOLA Fund does not receive money from taxpayers; its funding is sourced from interest rates on attorney escrow accounts. Money is held for the express purpose of funding civil legal services for low-income New Yorkers, as well as other training programs.
During the current five-year grant cycle, legal service organizations bid for grant awards that are used to pay for staff and services. The amount of grants awarded is based on the spending authority available, as well as demand.
Hochul has more than doubled IOLA spending since she took office, and the $77.5 million is still the largest allocation the IOLA Fund has seen. But advocates say it is still short of what’s needed to prevent significant grant cuts, which is needed as federal cuts to safety net programs will likely lead to increased legal services needed among low-income New Yorkers.
In an open letter to the governor, over 130 organizations and individuals echoed NYCBA’s call to allocate more IOLA funding. These organizations – which include New York Legal Assistance Group, Brooklyn Defender Services, Urban Justice Center and the Legal Aid Society – said these IOLA grants are how many low-income New Yorkers get representation for their housing, custody and immigration cases.
“Without the additional $25 million in spending authority needed to fully fund IOLA’s request, the second year of these contracts faces significant cuts,” the letter to Hochul read. “Such reductions would result in job losses, diminished services for vulnerable communities, and the unraveling of carefully planned innovations—directly undermining the policy goals your budget seeks to advance.”
