FOR IMMEDIATE RELEASE
Contact: Jake Oliver, jake@anatgerstein.com, 347-361-9983
January 22, 2026
Statement from the New York Legal Services Coalition on the Governor’s Executive Budget and IOLA Funding
ALBANY, NY – The New York Legal Services Coalition, a statewide organization representing civil legal service providers throughout New York State, released the following statement from President Kristin Brown in response to the Governor’s Executive Budget, which did not include full appropriation authority for the Interest on Lawyer Account (IOLA) Fund, a critical, non-taxpayer funding source for civil legal services for low-income New Yorkers:
“Civil legal services providers are essential partners in implementing the Governor’s own budget priorities, including protecting immigrants’ rights and helping New Yorkers navigate economic hardship. In civil matters – unlike in criminal cases – people do not have a guaranteed right to an attorney, even when facing the loss of housing, benefits, family stability, or safety. New York cannot meaningfully address affordability, protect immigrant communities, or deliver on its promise of fairness without a strong and stable civil legal services system.
“The Executive Budget does not include the full $102.5 million requested by the Interest on Lawyer Account (IOLA) Fund. This funding is not taxpayer money; it is generated through interest on attorney escrow accounts and is already held by IOLA for the sole purpose of supporting civil legal services statewide as prescribed in statute.
“IOLA is now entering the second year of a five-year, competitively bid contract process that was designed specifically to provide stability and predictability for civil legal services providers. When organizations know their funding levels over multiple years they can plan responsibly, retain staff, and meet growing demand for services at a time of unprecedented need. This approach was warmly welcomed by providers and is already supporting more effective, coordinated service delivery across the state.
“Over the past year, providers have also worked closely with IOLA to plan and implement critical infrastructure investments through the Justice Infrastructure Project. These efforts are intended to create long-term efficiencies and improve service quality, including the recently announced statewide civil legal services training center and a planned online intake portal that will expand access and streamline assistance for New Yorkers seeking help.
“Without the additional $25 million needed to fully fund IOLA’s request, there will be significant cuts to the second year of contracts. Those reductions would mean the loss of jobs, fewer services for vulnerable communities, and the potential unraveling of carefully planned investments that were intended to strengthen the civil legal services system for the long term—directly undermining the policy goals this budget seeks to advance.
“We urge the Governor to remedy this in the 30-day budget amendments. Providing IOLA with full appropriation authority to honor their contracts would reaffirm New York’s commitment to stability, efficiency, and access to justice, and ensure that civil legal services providers can continue to play their critical role in advancing the State’s affordability, equity, and immigrant protection agenda.”
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