Full Spending Authority for the Interest on Lawyer Account Fund
What is the Interest on Lawyer Account (IOLA) Fund?
The Interest on Lawyer Account (IOLA) Fund provides financial support to civil legal aid organizations serving the poor and supporting improvements to the justice system
These funds are not taxpayer dollars; they are generated through interest on lawyer trust accounts and are already held by IOLA for the express purpose of supporting civil legal services statewide, as authorized by statute
As currently proposed, the Executive Budget does not grant IOLA the full 102.5 million in spending authority requested
Please include the full, 102.5 million in spending authority for IOLA in your 30-day amendments to the SFY 2027 Executive Budget
How does full spending authority for IOLA support policy priorities?
The work of civil legal service organizations is crucial in advancing many of the priorities outlined in the Executive Budget, for example:
Protecting immigrant communities
Safeguarding housing stability
Defending access to vital benefits
Unlike in criminal matters, New Yorkers facing life-altering civil matters are not guaranteed legal representation
A strong, predictable, and accessible civil legal services network is therefore critical in ensuring that New Yorkers have the legal assistance they need to enforce their civil rights
How does full spending authority for IOLA support long-term stability for service providers?
In 2024, IOLA initiated a five-year contracting process designed to provide long-term stability and predictability for service providers
Without the additional $25 million in spending authority needed to fully fund IOLA’s request, the second year of these contracts faces significant cuts
Such reductions would result in job losses and diminished services for vulnerable communities, as well as unravel carefully planned innovations
Why is IOLA good for New York State?
A fully-funded IOLA reinforces New York’s commitment to stability, equity, and access to justice, and ensures that civil legal services providers can continue their vital work in supporting the state’s affordability and immigrant protection agenda
Full spending authority ensures that low-income New Yorkers continue to receive the assistance they need during a period of unprecedented demand
For more information, contact: Vincent Rosetti, Vincent@rossettigovrelations.com or America Rivera, arivera@empirejustice.org