Lawmakers propose boost to civil legal services fund
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State lawmakers proposed boosting funding for the Interest on Lawyer Account Fund to $102.5 million in their one-house budget proposals this week. File photo by Matt H. Wade/Wikimedia Commons
By Jacob Kaye
The state legislature this week proposed boosting a civil legal services fund in its one-house budgets that attorneys say was severely underfunded in Governor Kathy Hochul’s executive budget proposal.
Both the State Senate and Assembly included plans to restore $102.5 million in spending authority for the Interest on Lawyer Account Fund, which is generated from interest on attorney escrow accounts and used to pay civil legal services providers throughout the state.
The spending authority matches what attorneys and civil legal services groups say is the bare minimum needed to meet demand for legal aid in New York.
The budget proposals stand in contrast to the governor’s first fiscal plan, which she introduced in January. Hochul proposed capping IOLA’s spending at $77.5 million.
Though the governor’s proposal drew outrage from the state’s legal community, she rejected calls to increase the fund in her amended budget, which was released in February.
Unlike criminal cases in New York, there is no guaranteed right to counsel for civil cases, such as eviction, domestic violence, immigration, or estate cases. Instead, programs like IOLA fund civil legal services providers that represent New Yorkers who otherwise could not afford an attorney.
Civil legal services groups rejoiced on Tuesday following the release of the state legislature’s proposals.
“We are deeply grateful to the New York State legislature for recognizing the importance of stable funding for civil legal services,” New York Legal Services Coalition President Kristin Brown said in a statement.
“We urge the governor and legislature to ensure that the full IOLA funding included in the Senate and Assembly proposals is preserved in the final enacted budget,” she added. “Stable IOLA funding is essential to protecting New Yorkers’ homes, families, and livelihoods – and to ensuring that justice is accessible to all.”
Legal services groups have warned that the governor’s proposal would come at the expense of civil legal services providers, who rely on IOLA to fund their operations. A weakened IOLA would force the organizations to lay off staff and reduce their services, they said.
The governor’s proposal also comes at a crucial time for the fund – IOLA is currently in the second year of a five-year grant cycle, when legal service organizations bid for grant awards that are used to pay for staff and services.
“Ensuring full spending authority in the final enacted budget will allow organizations across New York to continue delivering critical services without disruption,” Brown said.
Providers also said that by increasing IOLA’s spending authority to $102.5 million, the state would be protecting its civil legal services infrastructure from potential federal cuts.
Hochul’s office has defended its budget proposal, noting that IOLA spending has more than doubled since she first took office. The $77.5 million in spending authority would be the largest such figure the fund has ever seen, if included in the final budget.
Governor Kathy Hochul will now negotiate with the state legislature over funding for IOLA. Photo by Mike Groll/Office of Governor Kathy Hochul
The Queens County Bar Association, which had advocated for increases to the fund, applauded lawmakers for boosting IOLA in their proposals.
“We're obviously happy to see both the New York State Senate and Assembly fully restore IOLA funding to the requested levels,” Kristen Dubowski-Barba, the QCBA’s president, told the Eagle on Tuesday. “This funding will assist the most vulnerable populations among us and will continue to help protect their legal interests.”
“We're cautiously optimistic as the legislature and governor begin budget negotiations that this funding restoration will be included in the final budget,” she added.
In addition to restoring IOLA funding, lawmakers also proposed $175 million in new spending for immigration legal services.
“Immigrants are the backbone of New York State, and we commend the Senate and Assembly for stepping up to defend and support those most vulnerable to family separation and economic hardship,” Murad Awawdeh, the president and CEO of the New York Immigration Coalition, said in a statement. “The proposed investment in legal services recognizes the need to ensure that immigrant New Yorkers can access the representation they need as unlawful ICE terror continues and hundreds of thousands of cases remain pending in immigration court.”
Lawmakers and immigration advocates rallied in Albany in support of the funding on Tuesday, and called on the state to pass the Access to Representation Act, which would guarantee immigrants facing deportation the right to legal counsel, and the BUILD Act, which would create a funding stream for the ARA. Both bills are sponsored by Queens lawmakers – Assemblymember Catalina Cruz introduced both bills in the lower house, while Deputy Majority Leader Michael Gianaris introduced the ARA in the Senate and Senator John Liu introduced the BUILD Act.
“At a time when New York’s immigrant communities continue to encounter rising hostility from the Trump White House, we must ensure our greatest defense against federal overreach, the courts, are fully staffed, funded and capable of supporting all in need of legal representation,” Liu said in a statement. “The Access to Representation Act and Build Act are absolutely necessary at this moment to ensure New York remains a home where fairness and opportunity are more than promised, but practiced.”
