The exclusion of the full $102.5 million spending authorization requested by the Interest on Lawyer Account (IOLA) Fund from the Governor’s SFY27 Budget proposal will affect essential civil legal services to low-income and vulnerable communities provided by the Legal Aid Society of Northeastern New York (LASNNY) and over eighty-five other legal service organizations across the state.
With just a $77.5 million in total spending authority proposed in the Governor’s budget, this 25 percent reduction in expected IOLA funding would have a substantial impact on staff support in critical projects, supervision and training, impact litigation, and advocacy.
As a major funding source for LASNNY, these resources help bridge gaps in federal and local grants to support economic justice, family protection, consumer rights, and outreach efforts. The IOLA Fund grant further supports the operations of the organization including the accounting department, facilities management, and human resources.
“We are already in uncertain times where federal funding is not promised,” said Nic Rangel, executive director at the Legal Aid Society of Northeastern New York. “It is imperative, not only to us but to all New Yorkers, that IOLA funding receives the full $102.5 million spending authority.”
The IOLA Fund is generated from interest on attorney escrow accounts and is dedicated solely to supporting civil legal aid for low-income New Yorkers. It does not involve taxpayer dollars in the general fund or reduce appropriations to other services.
IOLA is currently in the second year of a five-year contracting process aimed at providing consistency and enhancing services across the state. Insufficient funding could lead to reductions in awarded contracts, resulting in job losses, decreased service availability, and interruptions to planned improvements in the civil legal aid system. Without stable support, low-income New Yorkers facing civil legal issues will struggle to navigate these challenges alone.
LASNNY remains committed to serving northeastern New York’s low-income and most vulnerable populations by addressing critical needs in housing, family law, disability advocacy, consumer rights, and more.
