Lawmakers, civil legal services providers, bar association leaders, and advocates gathered today at the New York State Capitol to call for full support of the Interest on Lawyer Account (IOLA) Fund in the final state budget, warning that stable funding is essential to protecting access to justice for low-income New Yorkers. IOLA funds are not taxpayer dollars; current law requires their appropriation through the state budget process.

The action was organized by the New York Legal Services Coalition, the New York City Bar Association, and the New York State Bar Association alongside elected officials including Luis Sepúlveda, Senate Judiciary Committee Chair; Charles Lavine, Assembly Judiciary Committee Chair; Assemblywoman Michaelle Solages, Chair of the Black, Puerto Rican, Hispanic and Asian Legislative Caucus; and Linda Rosenthal, Assembly Housing Committee Chair.

Speakers emphasized that the IOLA Fund is a critical source of support for civil legal services organizations that help low-income New Yorkers navigate eviction, domestic violence, immigration enforcement, and loss of income.

“We are incredibly grateful to our partners in the Legislature and the Bar for standing with civil legal services organizations and the vulnerable New Yorkers we serve,” said Kristin Brown, President & CEO of Empire Justice Center and President of the New York Legal Services Coalition. “Stable funding for IOLA is essential to our work. By ensuring full support for IOLA in the final budget, lawmakers will help deliver on New York’s affordability and immigrant rights agenda.”

Both chambers’ one-house budget proposals restore full IOLA spending authority to $102.5 million. The Senate included an additional $50 million in authority for investment in civil legal services to be allocated at the discretion of the IOLA Board of Trustees.

The IOLA Fund is a fiduciary fund generated from interest on certain attorney trust accounts, not taxpayer dollars, and is statutorily dedicated exclusively to supporting civil legal services for low-income New Yorkers.

Civil legal services organizations funded through IOLA help hundreds of thousands of New Yorkers each year resolve legal problems involving housing stability, family safety, employment, immigration, and access to benefits. In fiscal year 2025, IOLA-funded organizations closed 336,789 legal matters, benefiting 691,846 people across the state. Those services generated an estimated $5.47 billion in economic benefits and savings for New York families.

Additionally, advocates highlighted legislation (A.1194, Solages) reaffirming the IOLA Fund’s integrity as a fiduciary fund.

In her Executive Budget this year, Governor Kathy Hochul proposed funding at $77.5 million, or 25% below IOLA’s requested level. This gap that would have resulted in service cutbacks for organizations seeking grants from IOLA during the current bidding cycle. Speakers stated that separating IOLA spending authority from appropriations would preclude funding gaps and mid-cycle disruptions.

“I firmly believe that justice cannot depend on the size of a bank account nor be a privilege reserved for those who can afford a lawyer; it must be a real and accessible right for everyone. Programs like IOLA are essential to ensure that low-income individuals have legal representation when they need it most. When the budget threatened to weaken IOLA this year, it threatened the stability of our communities. The initial budget proposal cut its spending authority, which would have meant fewer lawyers, fewer services, and more Bronx residents facing the system alone. Thanks to strong advocacy and my colleagues in the legislature, the one house budget proposes the restoration of the full funds, 102.5 million dollars, and the Senate has proposed an additional 50 million dollars to strengthen civil legal services statewide. Our work is not done. Now more than ever, we must guarantee the full spending authority of this fund, because behind every number are families who kept their homes, workers who recovered their wages, and communities that found protection and legal guidance. I stand with Bronxites and with every New Yorker who depend on these services. Defending IOLA is defending justice and the dignity of all New Yorkers,” said Senator Luis R. Sepúlveda.

“The principle at stake here is simple: access to justice should not depend on a person’s income. The IOLA Fund exists by statute to support civil legal services and uphold the rule of law for New Yorkers who would otherwise be shut out of our legal system. Ensuring that these funds are fully available and used for their intended purpose is a matter of legal integrity and fundamental fairness,” said Assemblymember Charles Lavine.

“Civil legal services are a lifeline for communities facing mounting threats from the Trump administration. The IOLA Fund is critical to sustaining this work: for immigrants in the crosshairs of ICE, for transgender New Yorkers afraid for their safety, and for workers abandoned by a hollowed-out Labor Department. That’s why we must restore full IOLA spending authority this budget cycle and ensure stable funding in perpetuity, so that these services are always available to support the most vulnerable among us,” said Assemblymember Michaelle Solages.

“For tenants across our state, the growing affordability crisis has made access to legal representation more important than ever,” said Assemblymember Linda B. Rosenthal. “The Interest on Lawyer Account Fund ensures that low income New Yorkers can access the civil legal services that help keep families in their homes, prevent unlawful evictions, and ensure that tenants can assert their rights in an increasingly tight housing market. By fully funding IOLA and ensuring its long-term stability, we will provide much-needed support and stability to the most vulnerable New Yorkers at a time when they need it most.”

The event also highlighted the unique partnership between the nonprofit civil legal services sector and the private bar, which work together through the IOLA Fund to ensure access to justice for communities across New York.

“For nearly 50 years, IOLA has reflected a fundamental principle: the legal profession’s independence and its commitment to ensuring access to justice for those who cannot afford representation. IOLA funds are not taxpayer dollars; they are interest generated from attorney escrow accounts and dedicated to supporting civil legal services for vulnerable New Yorkers. Civil legal aid organizations across the state built their staffing and services around the promise of stable IOLA funding. A $25 million shortfall would force damaging cuts. The New York City Bar Association urges Governor Hochul to join the Legislature in restoring full IOLA spending authority for FY2027 and reaffirming respect for the private bar’s role in sustaining access to justice,” said Muhammad U. Faridi, President of the New York City Bar Association.

“The Interest on Lawyer Account Fund exists for one purpose: to ensure that New Yorkers who cannot afford a lawyer still have access to justice when it matters most. These are not taxpayer dollars—they are funds generated within the legal system and dedicated by law to civil legal services. By insulating IOLA from the annual budget process, this legislation will provide the stability legal services providers need to help families avoid eviction, protect survivors of domestic violence, and navigate complex immigration proceedings. A fair justice system requires that people have meaningful access to legal help, and today’s proposal helps ensure that promise remains real for all New Yorkers,” said Taa Grays, Incoming President of the New York State Bar Association.

Finally, two New York City residents who benefited from IOLA-funded civil legal services shared their stories. Donna Akumboah received services from Immigration Law & Justice New York, which helped her and her parents navigate the immigration system and secure legal status. Brenda Quinn received services from LSNYC that helped her and her husband achieve housing stability in their rent-stabilized apartment.

“As a first-generation immigrant, my family and I have been able to live the American Dream. But my story would not be possible without civil legal services supported by IOLA. They helped my family and me navigate a confusing immigration system and secure our status. Today, as an attorney, I give back by volunteering as an immigration lawyer. And I am so proud to advocate for greater access to these services in New York, which still shines as a beacon for immigrants all around the world,” said Donna Akuamoah, Board Member of Immigration Law & Justice New York and beneficiary of IOLA-funded civil legal services.

“My husband and I were on the wrong side of a predatory landlord who overcharged us and then moved to evict us from our rent-stabilized apartment. I do not exaggerate when I say we would be homeless without services backed by IOLA. That legal representation gave us a fighting chance, and helped us achieve housing stability. I hope these services remain accessible for people like us, who just want to live in peace and dignity in our homes,” said Brenda Quinn, a beneficiary of IOLA-funded civil legal services.

 

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