Governor Hochul returns $100 million to IOLA Fund

Governor Kathy Hochul revised the executive budget to restore $100 million to a fund to provide civil legal services to low-income New Yorkers. The move came after intense lobbying from the legal community, including the New York State Bar Association (NYSBA).

NYSBA President Richard Lewis praised the Governor’s decision and explained the importance of these funds to New Yorkers facing serious civil legal issues.

“The New York State Bar Association reverses its decision to cut $100 million from a fund that covers the cost of civil legal services for low-income New Yorkers seeking life-saving treatment and facing homelessness,” Kathy Hochul said. I commend the Governor for those who need help recovering from debt or facing life-altering civil legal challenges,” Lewis said.

An initial proposal to redirect funding to the state’s general fund sparked widespread concern among legal aid providers, who feared the loss of critical support for critical services ranging from housing defense to health care access. caused it. His IOLA Fund was established in 1983 and has become an important source of civil legal aid for the state, with a current balance of $375 million.

Governor Hochul’s office had previously justified the proposed transfer by citing the fund’s high balance due to favorable interest rates and large state contributions over the past seven years. But a backlash from the legal community, highlighted by a public advocacy campaign and letters from hundreds of lawyers and social welfare organizations, prompted a reassessment of the decision.

“This funding is under the control of the IOLA Fund and supports 81 nonprofit legal services organizations that help New Yorkers when they are most in need,” said NYSBA President Lewis. “The New York State Bar Association fought tirelessly to preserve $100 million in the fund. We thank the governor for working with us and those who opposed the transfer to the general fund. Together, we have ensured that funding goes to low-income New Yorkers when they need it most. This is a victory for access to justice.”

The reversal of the funding transfer decision has been met with expressions of relief and approval from legal aid organizations across New York.