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 State budget shows strong support for civil legal services

The New York State budget includes notable investments in the civil legal services sector, including in foundational funding. 

Civil cases determine people’s access to the “Essentials of Life,” including housing, food, education, and safety, however, unlike in criminal cases, where people have a right to an attorney, civil legal service providers’ ability to take on clients depends on securing government contracts and private fundraising. The Permanent Commission on Access to Justice has estimated up to a $1 billion gap between current funding and unmet civil justice needs.  

The SFY 2026 Enacted Budget makes strides toward addressing one crisis facing the field. Pay for attorneys in civil legal services is significantly lower than their government counterparts doing substantially similar work, and providers are experiencing alarmingly high attrition rates and difficulty hiring due to this, which undermines the shared goal of closing the justice gap. The New York Civil Legal Services Coalition (NYLSC) released a white paper on the recruitment crisis earlier this year.

Foundational Support for the Civil Legal Services – the Interest on Lawyers Account and the Office of Court Administration  

The budget included a substantial increase in funding from the Office of Court Administration for the civil legal services, a total of $150 million, was included in the Judiciary budget proposal and agreed to by all parties. The NYLSC has been advocating for increased funding over the past several years to address the recruitment and retention crisis facing providers. 

The final budget also included an increase to $77.5 m in appropriation authority to the New York State Interest on Lawyer Account Fund (IOLA), including clarification of IOLA as a Fiduciary Fund. This, however, was shy of the $80 million that IOLA requested. IOLA funds are not tax levy dollars, but are approved by a Board of Trustees and then appropriated through the budget. 

“This state budget shows that the state recognizes the essential role of civil legal services in supporting low income and marginalized New Yorkers; we are deeply grateful for the ongoing partnership with leaders in all three branches of government, that the core funders for our sector have heard what the field is facing. In particular, we appreciate the leadership of Chief Judge Wilson and Chief Administrative Judge Zayas, making a major investment to support the ability to attract and retain attorneys - and ultimately serve tens of thousands more people in need. strong commitment and leadership of Chief Judge Wilson, Chief Administrative Judge Zayas and At a time when federal contracts and our client communities are simultaneously at risk, this state support will be critical to continuing to help New Yorkers access justice through our provider organizations as we seek to survive,” said Kristin Brown, President and CEO of Empire Justice Center and President of the New York Legal Services Coalition. 

“With regards to IOLA, and especially in light of the last-minute sweep of these funds in last year’s budget, we are glad to see the state affirm that IOLA is a fiduciary fund, as intended in the authorizing statute. However, we remain concerned that the budget did not include the full $80 million approved by the IOLA Board of Trustees. IOLA is not taxpayer funds and the money should be spent as the board directed. IOLA has the funds for the recently awarded five year competitive grants, providing stability and assurance of critical legal services during these unprecedented time; the whole legal community will be watching this closely to ensure that the funds remain available to fulfil their contractual and statutory purpose,” said Brown.

Funds for Victims of Crime 

The budget also included continuation of the multi-year state funding for services for victims of crime. While most funding comes from the Victims of Crime Act (VOCA) at the federal level, previous federal changes left providers facing cuts in funding, which would have impacted critical services. 

“We applaud Governor Hochul and the legislature for including $100 million over the next three years to support victims of crime. This funding helps survivors access legal assistance, domestic violence shelters, housing, counseling, restitution and more. Such support is crucial in restoring dignity to survivors and equipping them with the tools needed to remain resilient and confident during their recovery,” said Karen L. Nicolson, CEO/ED Center for Elder Law & Justice.

Homeowner Protection Program 

The final budget included level funding of $40 million for the Homeowners Protection Program (HOPP), which helps homeowners at risk of foreclosure. The HOPP network of almost 90 nonprofits across the state includes both legal service providers and housing counselors who help homeowners navigate the complex and ever-changing rules to prevent avoidable mortgage and property tax lien foreclosures and thus prevent homelessness, ensure family and community stability, and protect the creation and continuance of intergenerational wealth. Notably, this was the first year that the program was fully funded at $40 million in the executive budget, which was celebrated by providers. 

While the HOPP codification bill was included in both the Senate and Assembly one-house budgets, it was not included in the final budget. New York Legal Services Coalition had previously sent a letter to the governor in support of HOPP codification  last fall, after an earlier version of the bill passed both chambers. 

“In these challenging times when we are called upon to intensify our advocacy for those most marginalized in our nation and state, we were heartened by the inclusion of $40 million for the Homeowner Protection Program (HOPP) in Governor’s executive budget that was then fully supported by both houses,” said Jessica Rose, Executive Director of Brooklyn Legal Services Corporation A.  “It is essential that funding for HOPP remains intact and stable.  Accordingly, we also continue to call for the passage of S.7297C (Kavanagh)/A.7636C (Solages), which will codify HOPP.”

Office of New Americans

 "I am deeply appreciative to the Legislature and Governor Hochul for including $64.2M for services and grantee awards through the Office of New Americans as well as a further investment of $90M for community programming. The inclusion of this funding reinforces our State's commitment to protecting all New Yorkers, regardless of the National Climate", said Monice Barbero, Chief Executive Officer of The Legal Project, "As we navigate looming funding cuts and regulatory turmoil resulting from the current Federal Administration, our communities need access to affordable legal  representation now more than ever.  While disappointed that the proposed $10M for legal services recruitment and retention efforts did not make the final spending plan, I am hopeful that through strategic partnerships and community collaboration, these funds will allow for creative solutions in addressing the legal workforce needs."

Housing Access Voucher Program (HAVP)

The budget included a $50 million pilot for the Housing Access Voucher Program (HAVP), a statewide  rental assistance initiative designed to help New Yorkers who are unhoused or at risk of being unhoused secure and maintain stable housing in the private market through rental subsidies:

“The Legal Aid Society applauds the Legislature for taking this critical first step toward addressing New York’s homelessness and housing crises by creating a pilot for the Housing Access Voucher Program," said Judith Goldiner, Attorney-In-Charge of the Civil Law Reform Unit at The Legal Aid Society. “For far too long, the lack of accessible, affordable housing has left countless New Yorkers trapped in shelters, living on the street, or teetering on the brink of eviction. HAVP has the potential to transform lives by providing New Yorkers who are unhoused or at risk of being unhoused with the support necessary to secure safe, stable housing in the private market. We thank Assembly Speaker Carl Heastie, Senate Majority Leader Andrea Stewart-Cousins, Assembly Member Linda Rosenthal, and Senator Brian Kavanagh, Assembly and other lawmakers for securing passage of this critical legislation."

Upstate Civil Legal Services 

Upstate Civil Legal Services, which allows for regionally coordinated efforts to address critical gaps in civil legal services, was funded again at $3.5M. 

“We are so grateful for the continued leadership of Senator Sean Ryan and the other Upstate Senators in ensuring that the communities that they serve have greater access to legal services to those in need,” said Sal Curran, Executive Director of the Volunteer Lawyer Project of CNY. “These funds allow providers to respond to urgent needs as they arise in each of our communities, which is critical in a rapidly changing legal landscape.”

Eviction Defense 

The budget included a moderate increase from $50 million to $55 million for a program to provide tenants facing eviction access to legal representation.

“Eviction can cause serious harm, from disrupting children’s education to cutting off access to healthcare and creating long-term financial struggles. This eviction defense funding has been a lifeline for the families we serve,” said Lori O’Brien, Executive Director of Legal Assistance of Western New York, Inc. (LawNY). “We’re thankful for the continued support in the New York State budget, which has made a real difference for those at risk of losing their homes. This funding has also helped us strengthen collaborative partnerships in our communities, ensuring more low-income New Yorkers get the legal support they need.”

What’s Next

The next priority for the coalition will be addressing nonprofit contracting and payment delays in New York State, which are putting providers at risk. The NYLSC is collaborating on a white paper, to be released in tomorrow. 

About the New York Legal Services Coalition 

The New York Legal Services Coalition is a statewide association that represents the interests of civil legal services organizations and the communities they serve. Our members collectively provide services in the areas of family law, housing, immigration, and public benefits across all 62 counties of New York State. 

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