Website Link: https://www.nycbar.org/press-releases/nyc-bar-urges-governor-to-fully-fund-iola-in-budget-amendments/?ref=media

The New York City Bar Association and its Pro Bono and Legal Services Committee, which represents numerous leading legal services providers as well as major pro bono partner law firms and corporations, respectfully urges Governor Hochul to include full spending authority for the Interest on Lawyer Account (IOLA) Fund in her forthcoming 30-day amendments to the 2027 Executive Budget.

We live in a time of tremendous fear and pressure among the most vulnerable in our communities – including especially immigrants, those experiencing or at risk of homelessness, low-income seniors, domestic violence victims, children caught up in family law disputes and myriad other challenges, and so many others who rely on civil legal aid to defend their rights and safeguard their most essential human needs. With much of this fear and pressure – indeed, even violence – stemming from policy decisions at the federal level and erosion in the rule of law, 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.

Civil legal services providers and our pro bono partners are essential allies in advancing many of the priorities outlined in the Governor’s Executive Budget – including protecting immigrant communities, supporting New Yorkers facing economic hardship, and safeguarding housing stability, family security, and access to vital benefits. Unlike in criminal cases, New Yorkers confronting life altering civil matters are not guaranteed an attorney in almost all instances. A strong, predictable, and accessible civil legal services network is therefore critical to achieving the Governor’s goals of fairness, affordability, and equity.

As currently proposed, the Executive Budget does not grant IOLA the full $102.5 million in spending authority requested. These funds are not taxpayer dollars; they are generated through interest on attorney escrow accounts and are already held by IOLA for the express purpose of supporting civil legal services statewide, as authorized by statute.

In 2024, IOLA initiated a five-year, competitively bid contracting process designed to provide long-term stability and predictability for service providers. This multi-year approach—widely embraced by the field—enables organizations to plan responsibly, recruit and retain staff, and meet increasing demand for services. It is already improving coordination and strengthening service delivery across the state.

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, diminished services for vulnerable communities, and the unraveling of carefully planned innovations—directly undermining the policy goals the Governor’s budget seeks to advance.

We respectfully ask the Governor to address this issue in the 30-day amendments by providing IOLA with the full appropriation authority required to honor its multi-year commitments. Doing so will reinforce New York’s commitment to stability, equity, and access to justice, and ensure that civil legal services providers can continue their vital work in supporting the state’s affordability and immigrant protection agenda.

We thank the Governor for her leadership and for her continued commitment to ensuring fairness and opportunity for all New Yorkers.

About the Association
The mission of the New York City Bar Association, which was founded in 1870 and has over 20,000 members, is to equip and mobilize a diverse legal profession to practice with excellence, promote reform of the law, and uphold the rule of law and access to justice in support of a fair society and the public interest in our community, our nation, and throughout the world. www.nycbar.org