Legal Services Corporation: Background and Funding

Legal Services Corporation:
Background and Funding
Updated November 19, 2008
Carmen Solomon-Fears
Specialist in Social Policy
Domestic Social Policy Division

Legal Services Corporation:
Background and Funding
Summary
The Legal Services Corporation (LSC) is a private, nonprofit, federally funded
corporation that helps provide legal assistance to low-income people in civil (i.e.,
non-criminal) matters. The primary responsibility of the LSC is to manage and
oversee the congressionally appropriated federal funds that it distributes in the form
of grants to local legal services providers, which in turn give legal assistance to low-
income clients in all 50 states, the District of Columbia, the U.S. territories of
American Samoa, Guam, and the Virgin Islands, the Commonwealth of Puerto Rico,
and Micronesia (including the Commonwealth of the Northern Mariana Islands, the
Republic of the Marshall Islands, and Palau).
Although the authorization of appropriations for the LSC expired at the end of
FY1980, the LSC has operated for the past 28 years under annual appropriations
laws. The LSC is currently funded at $350.5 million for FY2008 (P.L. 110-161).
P.L. 110-329, the continuing appropriations law for FY2009, continues LSC funding
at FY2008 levels ($350.5 million) through March 6, 2009. Current LSC funding
remains below the LSC’s highest funding level of $400 million in FY1994 and
FY1995.
Under the LSC’s competitive process, legal services providers in every
jurisdiction bid to become the LSC grantee for a designated service area in a state.
During 2007, the LSC funded 138 local programs/grantees in 923 offices employing
about 3,900 attorneys. Local programs establish their own eligibility criteria, in
which clients served may not have income that exceeds 125% of the federal poverty
guidelines. In 2007, 73% of LSC clients were females and 27% were males. The
majority of LSC clients (85%) were between the ages of 18 and 59, 13% were age 60
or older, and 2% were under the age of 18. Almost 46% of LSC clients were non-
Hispanic white, 25% were non-Hispanic black, 8% were of other races, and 20%
were Hispanic. In 2007, LSC grantees in each year closed about 907,000 cases
involving issues primarily related to families (divorce, child support, etc.), housing,
income maintenance, consumer finance, and individual rights.
Although the LSC is the largest single source of funding for the civil legal
services system in the United States, it is not the only source of funding. Local legal
services programs supplement their LSC grants with funds from a variety of
governmental and private sources. LSC funding accounts for about 42% of all
funding for civil legal services for the poor in the United States. This report will be
regularly updated.

Contents
In troduction ......................................................1
Program Mechanics................................................2
Restrictions on Activities........................................3
Clients and Cases..................................................4
Funding History...................................................6
FY1996 .....................................................6
FY1997-FY2001 ..............................................7
FY2002-FY2005 ..............................................7
FY2006-FY2008 ..............................................8
FY2009 .....................................................9
Distribution of LSC Funds and Non-LSC Resources.....................11
List of Figures
Figure 1. LSC Cases Closed in 2007, by Legal Problem...................5
List of Tables
Table 1. LSC Appropriations History..................................6
Table 2. LSC: Funding for Program Components, FY2001-FY2008........11
Table 3. Funding for LSC and Non-LSC Programs, by Jurisdiction, FY2007..12

Legal Services Corporation:
Background and Funding
Introduction
The Legal Services Corporation (LSC) is a private, nonprofit, federally funded
corporation that helps provide legal assistance to low-income people in non-criminal
(i.e., civil) matters. The LSC is governed by an 11-member board appointed by the
President and confirmed by the Senate, of whom no more than six members may be
of the same political party. The primary responsibility of the LSC is to manage and
oversee the congressionally appropriated federal funds that it distributes in the form
of grants to local legal services providers, which in turn give legal assistance to low-
income clients in all 50 states, the District of Columbia, the U.S. territories of
American Samoa, Guam, and the Virgin Islands, the Commonwealth of Puerto Rico,
and Micronesia (including the Commonwealth of the Northern Mariana Islands, the
Republic of the Marshall Islands, and Palau).
The federal government has administered a^LSC^La^w^s^aⁿ^d^Appro^p^ria^t^io^ns
program of legal services for the poor since 1966.
Originally, the program was administered through^P.L^.^93-^{355 (Ju}^l^y^{25, 1974)}
the Office of Economic Opportunity, a now-^P.L^.^95-^{222 (D}^{ec. 28, 1977)}
defunct agency that had led the War on Poverty in^P.L^.^105-^{12 (A}^{pr. 30, 1997)}
the mid-1960s. In 1971, President Nixon proposed^P.L^.^106-^{185 (A}^{pr. 25, 2000)}^P.L^.^104-^{134 (A}^{pr. 26, 1996)}
establishment of a separate corporation to deliver^P.L^.^104-^{208 (S}^ept^.^{30, 1996)}
legal services to insulate the program from political¹^P.L^.^105-^{119 (N}^ov^{. 26, 1997)}
pressure. Authorizing legislation was enacted in^P.L^.^105-^{277 (O}^ct^{. 21, 1998)}

1974 (P.L. 93-355), and the LSC came into^P.L^.^106-^{113 (N}^ov^{. 29, 1999)}

existence the following year. In 1977, the LSC was^P.L^.^106-^{553 (D}^{ec. 21, 2000)}
extended through FY1980 (P.L. 95-222). Although^P.L^.^107-^{77 (N}^ov^{. 28, 2001)}^P.L^.^108-^{7 (F}^{eb. 20, 2003)}
Congress has not reauthorized the LSC statute^P.L^.^108-^{199 (Jan}^{. 23, 2004)}
since FY1980, it has continued to fund LSC every^P.L^.^108-^{447 (D}^{ec. 8, 2004)}
year, and has included legislative language^P.L^.^109-^{108 (N}^ov^{. 22, 2005)}
affecting LSC activities in the annual^P.L^.^110-^{5 (F}^{eb. 15, 2007)}
appropriations laws.^P.L^.^110-^{161 (D}^{ec. 26, 2007)}
^P.L^.^110-^{329 (S}^ept^.^{30, 2008)}

¹ Center for Law and Social Policy. Securing Equal Justice for All: A Brief History of Civil
Legal Assistance in the United States, by Alan W. Houseman and Linda E. Perle, November
2003, p. 17, [http://www.clasp.org/publications/Legal_Aid_History.pdf]. See also President
Nixon, Special Message to the Congress Proposing Establishment of a Legal Services
Corporation, May 5, 1971, [http://www.presidency.ucsb.edu/ws/print.php?pid=2998].

Program Mechanics
The LSC does not provide legal services directly. Rather, it funds local legal
services providers, referred to by the LSC as “grantees.” Grantees may include
nonprofit organizations that have as a purpose the provision of legal assistance to
eligible clients, private attorneys, groups of private attorneys or law firms, state or
local governments, and certain sub-state regional planning and coordination agencies.
During 2007, the LSC funded 138 local programs in 923 offices employing
about 3,900 attorneys. These numbers are reduced from 1994, when 320 local
programs employed about 4,500 attorneys. Each local program is governed by its
own board of directors, of which a majority are attorneys and one-third are eligible
clients. Local programs establish their own eligibility criteria, under which a client’s²
household income may not exceed 125% of the federal poverty guidelines. Each
local program must spend an amount equal to at least 12.5% of its basic grant to
encourage private attorneys to provide pro bono legal aid to the poor.
Since April 1996 (P.L. 104-134), LSC grantees (i.e., legal services
agencies/providers/programs) have been selected on a competitive basis.³ Under the
LSC’s competitive process, legal services providers in every jurisdiction bid to
become the LSC grantee for a designated service area in a state. Pursuant to its 1998
State Planning Initiative, the LSC has sought to streamline its delivery system.
During the competition process, the LSC evaluates applications according to
established quality standards and awards grants to those providers judged best
qualified to provide high-quality legal services in accordance with applicable legal
requirements. Federal regulations (Title 45 C.F.R. Part 1634) stipulate the procedures
to be followed in awarding LSC grants. Grants are made for one to three years.
Multi-year awardees must submit reports and grant renewal forms as part of the
annual grant renewal process.
Before the implementation of the 1998 State Planning Initiative, LSC grantees
often were unaware of other LSC grantees in the state. Work and training
collaborations and other cooperative endeavors were rare among LSC grantees in the
same state, and practically nonexistent among LSC grantees in other states. Further,
most legal services programs only had superficial relationships and minimal contact
with law firms and local judges. In anticipation of reduced federal funding, the LSC
first encouraged and later directed grantees to form partnerships with the judiciary,
private bar associations, and with each other. The 1998 State Planning Initiative was
the means by which the LSC sought to ensure that LSC funds were efficiently and
effectively used to provide legal services to poor persons in all areas of the states and

² In 2007, 125% of the federal poverty guidelines was $25,813 for a household of four
(higher in Alaska and Hawaii).
³ This system supplanted the previous system of presumptive refunding for LSC grantees.
The LSC is prohibited from granting any preference to current or previous grantees of LSC
funds (Section 503(e) of P.L. 104-134, enacted April 26, 1996).

jurisdictions. Pursuant to the 1998 Initiative, the LSC made participation in statewide
civil legal services delivery systems a condition of receipt of LSC funding.⁴
It is generally agreed that poor persons in need of legal assistance have
benefitted from the LSC’s statewide delivery system approach. The LSC has done
this by requiring federally funded legal services providers to coordinate their work
with other persons and organizations within a state, including groups historically
considered funding “competitors” (other nonprofit organizations and non-LSC legal
services programs) or “unlikely partners” (judges, legislators, bar leaders).⁵
Restrictions on Activities
Since its inception, the legal services program has been controversial, and
Congress has imposed restrictions on activities of local attorneys. The authorizing
statute contains restrictions against lobbying, political activities, class actions except
under certain conditions, and cases involving abortion, school desegregation, and
draft registration or desertion from the military. Additional restrictions have been
included in appropriations laws each year. Under the current appropriations law,
LSC grantees may not
^!engage in partisan litigation related to redistricting;
^!attempt to influence regulatory, legislative or adjudicative action at
the federal, state, or local level;
^!attempt to influence oversight proceedings of the LSC;
^!initiate or participate in any class action suit;
^!represent certain categories of aliens, except that both LSC and non-
LSC funds may be used to represent aliens who have been victims
of domestic violence or child abuse;
^!conduct advocacy training on a public policy issue or encourage
political activities, strikes, or demonstrations;
^!claim or collect attorneys’ fees;
^!engage in litigation related to abortion;
^!represent clients in eviction proceedings if the eviction was based on
drug-related activities;
^!represent federal, state, or local prisoners;
^!participate in efforts to reform a federal or state welfare system;
^!engage in activities related to assisted suicide, euthanasia, or mercy
killing; or
^!solicit clients.

⁴ Legal Services Corporation. State Planning — A Five Year Overview, 2005, pp. 1-7,
[ h t t p : / / www.l s c.go v/ pdf s/ 030194_sp5yr r p r t .pdf ] .
⁵ Ibid., p. 8.

LSC grantees must establish priorities, and staff must agree in writing not to
engage in activities outside these priorities. Moreover, federal law prohibits the LSC
from receiving nonfederal funds, and grantees are prohibited from receiving non-LSC
funds, unless the source of funds is told in writing that these funds may not be used
for any activities prohibited by the LSC Act or the appropriations law.
Clients and Cases
Legal services provided through LSC funds are available only in civil matters
to individuals with household incomes of less than 125% of the federal poverty
guidelines. The LSC places primary emphasis on the provision of routine legal
services. Legal services cases deal with a variety of issues, including family-related
issues (divorce, separation, child custody, support, adoption, spousal abuse, child
abuse or neglect); housing issues (evictions, foreclosures); welfare or other income
maintenance program issues (access to health care, unemployment compensation
benefit claims); consumer and finance issues (consumer fraud, debt collection); and
individual rights (employment, health, juvenile, and education).
During 2007, legal services attorneys closed 906,507
cases. Family issues such as divorce and separation, custody^L^S^{C Ca}^{ses Clo}^s^ed
and visitation, domestic abuse, and child support were the
substance of about 38% of cases handled by field offices;^F^Y^2002:^978,834
housing issues, including eviction cases, comprised about 25%^F^Y^2003:^935,793
of cases; income maintenance issues represented another 11%^F^Y^2004:^901,067
of cases; and consumer finance and individual rights issues^F^Y^2005:^906,338
comprised about 26% of cases. Most of the cases handled by^F^Y^2006:^895,488
LSC are resolved through advice and referral. In 2007, only
about 13% of cases were resolved in court, primarily because^F^Y^2007:^906,507

they involved family law issues (e.g., protective orders, child
support, etc.) in which court action was required by state law.⁶
⁶ Legal Services Corporation, Legal Services Corporation Fact Book 2007, June 2008,
[ h t t p : / / www.l s c.go v/ pdf s/ f a ct book2007.pdf ] .

Figure 1. LSC Cases Closed in 2007, by Legal
Problem
^C^o^ns^um^er^Ot^h^e^r¹⁴^.³^%
^Fⁱ^na^nc^{e 1}¹^.⁵^%
^In^c^o^m^e
^M^aⁱⁿ^t^e^na^nc^e
¹¹^.⁴^%
^Fa^mⁱ^l^y
³⁷^.⁶^%
^H^o^usⁱⁿ^{g 2}⁵^.²^%
^Source:^Fig^u^r^{e prepared by}^th^{e C}^oⁿ^g^r^es^sⁱ^on^{al R}^e^s^earch^Serv^ice.
LSC grantees have closed about 1 million cases annually for the last several
years. In addition, they have handled another 4 million legal service “matters” such
as helping self-represented (i.e., pro se) litigants obtain the information they need to
pursue their lawsuits, disseminating legal services materials in communities,
referring clients to appropriate services, and providing mediation assistance.
According to the LSC Fact Book for 2007, LSC clients were of all races and
ethnic groups. LSC clients include the working poor, veterans, family farmers,
people with disabilities, battered women,
women seeking divorces or child support,^Ra^{ce a}^{nd Et}^hnicit^y
and victims of natural disasters such as^{of L}^S^C^C^lⁱ^eⁿ^t^s^,²⁰⁰⁷
Hurricane Katrina. In 2007, 73% of LSC^W^h^{ite, n}^o^{t Hisp}^an^ic^46.4%
clients were females and 27% were males.^B^l^ack^{, n}^o^{t His}^p^an^ic^25.1%
Approximately 85% of LSC clients were^Hisp^an^ic^20.3%
between the ages of 18 and 59, 13% were^Nativ^{e A}^m^erican^A^s^ian^{or P}^acifⁱ^{c Is}^lan^d^er^2.3%^2.4%
age 60 or older, and 2% were under age 18.^Oth^e^r^3.4%

In 2005, LSC staff were directed by the
LSC to document the extent to which the
civil legal needs of low-income persons were not being met. Based on three
methodologies, the LSC found that (1) 50% of potential clients requesting legal
assistance were denied assistance because the LSC did not have the resources to help
them; (2) eight of nine state studies conducted in the last five years indicated that at
least 80% of persons who were eligible for LSC services do not have access to such
services when they need them; and (3) there is one legal services attorney for every
6,861 low-income persons — the comparable number for the general population is
one attorney for every 525 persons, a difference of 13 to one.⁷
⁷ Legal Services Corporation. Documenting the Justice Gap in America — The Current
Unmet Civil Legal Needs of Low-Income Americans. September 2005, available at
[ h t t p : / / www.l s c.go v/ pr ess/ document s / LSCJ u st i c eGap_FINAL_1001.pdf ] .

Funding History
When the LSC was first established, its initial goal was to provide all low-
income people with at least “minimum access” to legal services, defined as the
equivalent of one legal services attorney for every 5,000 poor persons. This goal was
briefly achieved in FY1980, but not maintained due to inflation and subsequent
budget cuts. For example, in FY2004, the LSC estimated an appropriation of $683
million would have been needed for minimum access; however, the LSC received
$335 million in appropriations that year. According to a 2005 LSC study (cited
above), there is one legal services attorney for every 6,861 poor persons.
Funds for the LSC are included in the annual appropriation for Science, the
Departments of State, Justice, and Commerce, and Related Agencies (House) and
Commerce, Justice, Science, and Related Agencies (Senate). Table 1 shows LSC
appropriations for selected years from FY1976 (the first full year of LSC operations)
to FY2008. Current funding remains below the LSC’s highest funding level of $400
million in FY1994 and FY1995. LSC funding accounts for less than half (42%) of
all funding for civil legal services for the poor in the United States (discussed in more
detail later in this report).
Table 1. LSC Appropriations History
($ in millions)
^FY^$^F^Y^$^FY^$^F^Y^$^FY^$
¹⁹⁷⁶⁹²¹⁹⁹⁰³¹⁷¹⁹⁹⁵⁴⁰⁰²⁰⁰⁰³⁰⁴²⁰⁰⁵³³¹
¹⁹⁸⁰³⁰⁰¹⁹⁹¹³²⁸¹⁹⁹⁶²⁷⁸²⁰⁰¹³²⁹²⁰⁰⁶³²⁷
¹⁹⁸⁴²⁷⁵¹⁹⁹²³⁵⁰¹⁹⁹⁷²⁸³²⁰⁰²³²⁹²⁰⁰⁷³⁴⁹
¹⁹⁸⁸³⁰⁶¹⁹⁹³³⁵⁷^{1998 283}²⁰⁰³³³⁷²⁰⁰⁸³⁵¹
¹⁹⁸⁹³⁰⁹¹⁹⁹⁴⁴⁰⁰¹⁹⁹⁹³⁰⁰²⁰⁰⁴³³⁵
Source: Table prepared by the Congressional Research Service.
FY1996
From its inception through FY1995, LSC appropriations gradually increased.
However, for FY1996, Congress funded the LSC at $278 million, for a reduction of
almost 31% from the previous year. In its FY1996 budget resolution, the House
assumed a three-year phase-out of the LSC, recommending appropriations of $278
million in FY1996, $141 million in FY1997, and elimination by FY1998. The House
Budget Committee stated in its report (H.Rept. 104-120):
Too often, ... lawyers funded through federal LSC grants have focused on
political causes and class action lawsuits rather than helping poor Americans
solve their legal problems.... A phase out of federal funding for the LSC will not
eliminate free legal aid to the poor. State and local governments, bar
associations, and other organizations already provide substantial legal aid to the
poor.

The FY1996 appropriation for the LSC entirely eliminated funding for supplemental
legal assistance programs, including Native American and migrant farm worker
support, national and state support centers, regional training centers, and other
national activities.
FY1997-FY2001
The phase-out of the LSC envisioned by the House budget resolution did not
occur. Instead, between FY1996 and FY2001, LSC funding was gradually increased.
For FY1997, Congress funded the LSC at $283 million (P.L. 104-208). For FY1998,
Congress again funded the LSC at $283 million (P.L. 105-119). For FY1999,
Congress funded the LSC at $300 million (P.L. 105-277). For FY2000, Congress
funded the LSC at $305 million, but also included a provision in the legislation that
mandated a 0.38% government-wide rescission of discretionary budget authority for
FY2000. The funding for the LSC for FY2000 was thereby decreased to $304
million (P.L. 106-113).
For FY2001, the Clinton Administration requested $340 million for the LSC.
The Clinton Administration had requested $340 million every year since FY1997, in
an effort to partially restore the 1996 cutback in funding. P.L. 106-553 included
$330 million for LSC for FY2001, and was signed by President Clinton on December
21, 2000. P.L. 106-554 mandated a 0.22% government-wide rescission of
discretionary budget authority for FY2001 for almost all government agencies. Thus,
the $330 million appropriation for LSC for FY2001 was reduced to $329.3 million.
FY2002-FY2005
For FY2002 through FY2005, the Bush Administration requested $329.3
million in annual appropriations for the LSC. In carrying out the LSC’s vision of an
effective and efficient statewide system of delivering legal services to the poor,
grantees had been merging and reconfiguring their legal services programs to better⁸
use every federal dollar allocated to them. The House report (H.Rept. 107-139)
indicated concern about the LSC overruling, without appeal, certain configurations
implemented by grantees via the state planning process. The House report directed
the LSC to review the state planning process and report back to the committee with
a proposal that outlined the reconfiguration standards and the process for states to
appeal LSC’s decisions. P.L. 107-77 included $329.3 million for LSC for FY2002.
For FY2003, Congress funded the LSC at $336.6 million (P.L. 108-7); this
funding level included a $9.5 million allotment to offset decennial Census funding
reallocations (i.e., to partially compensate some service areas for smaller LSC
funding levels for FY2003 than the area received for FY2002 as a result of the
change in state poverty populations based on census data for 2000), and a mandated

0.65% government-wide rescission.

⁸ Legal Services Corporation, A Special Report to Congress, State Planning &
Reconfiguration, September 2001, pp. 2-3, 10.

For FY2004, Congress funded the LSC at $335.3 million (P.L. 108-199); this
funding level included a 0.59% across-the-board government-wide rescission and an
additional 0.465% uniform rescission applicable only to funding for the Commerce,
Justice, State, and Related Agencies appropriation (which included the LSC).
For FY2005, Congress funded the LSC at $330.8 million (P.L. 108-447); this
funding level included a provision that allowed the LSC to spend up to $1 million of
prior-year funding balances for a school student loan repayment pilot program, a
0.8% across-the-board government-wide rescission, and an additional 0.54% uniform
rescission applicable only to funding for the Commerce, Justice, State, and Related
Agencies appropriation (which included the LSC).
FY2006-FY2008
For FY2006, the Bush Administration requested $318.3 million for the LSC.
P.L. 109-108 included $330.8 million for the LSC for FY2006 — the same amount
originally passed by the House, instead of $358.5 million, as passed by the Senate.
P.L. 109-108 also included a general rescission equal to 0.28% of funding for the
Science, State, Justice, Commerce, and Related Agencies appropriation (which
includes the LSC). P.L. 109-148 included a 1% government-wide rescission on
discretionary programs. Thus, the LSC appropriation for FY2006 was lowered to
$326.6 million.
For FY2007, the Bush Administration requested $310.9 million for the LSC.
P.L. 110-5 included language that specified that the LSC would be funded at $348.6
million for FY2007. P.L. 110-5 incorporated the fourth continuing resolution for
FY2007 (H.J.Res. 20), which included provisions to fund most of the government
agencies, including the LSC, through FY2007.
For FY2008, the Bush Administration requested $311 million for the LSC. The
Administration’s budget request included $289 million for basic field programs and
requires independent audits; almost $13 million for management and administration;
$5 million for client self-help and information technology; and $3 million of the
Office of the Inspector General.
For FY2008, the Senate Appropriations Committee recommended $390 million
for the LSC (S. 1745), a $41.4 million increase above the FY2007 LSC
appropriation, and $79.1 million above the Administration’s FY2008 budget request
for the LSC. During the Senate debate on the bill (H.R. 3093), an amendment by
Senator Bingaman was passed to permit LSC-funded legal services programs to
provide legal assistance to “H2B” workers — temporary foreign workers employed
in the forestry industry — in matters directly related to their employment. LSC-
funded programs are currently prohibited from serving H2B workers. The Senate-
passed bill provided $390 million for the LSC for FY2008.
For FY2008, the House Appropriations Committee recommended $377 million
for the LSC, a $28.4 million increase above the FY2007 LSC appropriation, $66.1
million above the Administration’s FY2008 budget request for the LSC, and $13
million below the Senate-passed bill. The House-passed bill (H.R. 3093) included
$377 million for the LSC for FY2008.

Pursuant to a continuing appropriations resolution (H.J.Res. 52), enacted
September 29, 2007, the LSC operated at FY2007 funding levels through November
16, 2007 (P.L. 110-92). Pursuant to a second continuing appropriations resolution
in the FY2008 Department of Defense appropriation (H.R. 3222), enacted November
13, 2007, the LSC operated at FY2007 funding levels through December 14, 2007
(P.L. 110-116). Pursuant to a third continuing appropriations resolution (H.J.Res.
69), enacted December 14, 2007, the LSC operated at FY2007 funding levels through
December 21, 2007 (P.L. 110-137). Pursuant to a fourth continuing appropriations
resolution (H.J.Res. 72), the LSC operated at FY2007 funding levels through
December 31, 2007 (P.L. 110-137).
P.L. 110-161, the Consolidated Appropriations Act, 2008 (H.R. 2764 — enacted
December 26, 2007), included $350.5 million for the LSC for FY2008. This amount
is $1.9 million above the FY2007 appropriation for the LSC and $39.6 million above
the Administration’s FY2008 budget request for the LSC. However, it is below the
amounts that were passed by the House and the Senate. The FY2008 appropriation
for the LSC includes $332.4 million for basic field programs and required
independent audits, $12.5 million for management and administration, $2.1 million
for client self-help and information technology, $3.0 million for the Office of the
Inspector General, and $0.5 million for loan repayment assistance. According to the
LSC, pursuant to P.L. 110-161, LSC-funded legal services programs can now provide
limited representation to temporary forestry workers.
FY2009
For FY2009, the Bush Administration requested $311.0 million for the LSC.⁹
The Administration’s budget request would include $290.1 million for basic field
programs and required independent audits; $12.8 million for management and
administration; $5.0 million for client self-help and information technology; and $3.0
million for the Office of the Inspector General.
For FY2009, the House Appropriations Committee approved $390 million for
the LSC. The House committee-approved draft bill would provide 11% more than
the FY2008 LSC appropriation and 25% more than the FY2009 request for the LSC.
It would include $367 million for basic field programs and required independent
audits, $16 million for management and administration, $3 million for client self-help
and information technology, $3 million for the Office of the Inspector General, and
$1 million for loan repayment assistance.

⁹ Each year the LSC submits its own budget request to Congress. In most years, the LSC
budget request is significantly higher than the amount that appears in the President’s annual
budget. For FY2009, the LSC requested an appropriation of $471.4 million, a 52% increase
over the President’s budget request of $311 million for the LSC. The reasons cited for the
significant increase included legal problems of existing and new clients stemming from the
recent crises in the mortgage and housing industries, the ongoing impact of natural disasters,
and widespread domestic violence, along with recent LSC findings that there is significant
unmet need among America’s poorest populations with regard to civil legal assistance.

For FY2009, the Senate Appropriations Committee, like the House committee,
also approved $390 million for the LSC. However, the Senate committee bill (S.
3182) would include $369 million for basic field programs and required independent
audits, $13 million for management and administration, $3.8 million for client self-
help and information technology, $3.2 million for the Office of the Inspector General,
and $1 million for loan repayment assistance.
P.L. 110-289, the Housing and Economic Recovery Act of 2008 (enacted July
30, 2008), included a provision that provides $30 million for pre-foreclosure and
legal counseling through a new grant program. Under the new program, the
Neighborhood Reinvestment Corporation, a congressional chartered nonprofit
organization, is required to make grants to housing counselors to hire LSC attorneys
to assist homeowners who have legal issues directly related to the homeowner’s
foreclosure, delinquency, or short sale.¹⁰
P.L. 110-315, the College Opportunity and Affordability Act of 2008 (enacted
August 14, 2008), included a provision that authorizes $10 million for the U.S.
Department of Education to distribute as loan repayment assistance grants (up to
$6,000 per year, $40,000 for a lifetime) to full-time civil legal aid lawyers who agree
to remain employed as such for at least three years.¹¹ Although the loan repayment
program was authorized, funding for the program has not yet been appropriated.
P.L. 110-329, the Consolidated Security, Disaster Assistance, and Continuing
Appropriations Act, 2009 (enacted September 30, 2008), among other things,
requires that the LSC continue to operate at FY2008 funding levels (i.e., $350.5
million) until March 6, 2009, or until LSC’s regular FY2009 appropriation is
enacted.
It is important to note that since FY1996, all of the LSC appropriations laws
have included language stipulating the provisions restricting the activities of LSC
grantees enacted in previous LSC appropriations laws.¹² (See the earlier section
titled “Restrictions on Activities.”) Table 2 shows LSC appropriations for FY2001-
FY2008, by component of funding.

¹⁰ See sections 2305 and 2401 of P.L. 110-289.
¹¹ See section 431 of P.L. 110-315.
¹² Although the authorizing statute contains some restrictions on LSC activities, many more
restrictions were added by P.L. 104-134 in 1996. Other restrictions and modifications or
clarifications were added in 1997 (P.L. 105-119) and 1998 (P.L. 105-277). All LSC
appropriation laws enacted after 1996 have included language referencing the restrictions
in prior appropriation laws.

Table 2. LSC: Funding for Program Components, FY2001-FY2008
($ in millions)
^L^S^C^Program^FY²⁰⁰¹^FY²⁰⁰²^FY²⁰⁰³^FY²⁰⁰⁴^FY²⁰⁰⁵^FY²⁰⁰⁶^FY²⁰⁰⁷^FY²⁰⁰⁸
^Co^m^p^oⁿ^ents
^Basⁱ^{c f}ⁱ^el^{d prog}^ram^s^309.3^310.⁰^308.0^316.4^312.4^308.4^330.8^332.5
^M^a^na^ge^m^e^nt^aⁿ^d^10.8^12.4^13.2^13.0^12.8^12.7^12.7^12.5
^ad^mⁱⁿⁱ^str^a^tioⁿ
^Clien^t^self^-^h^elp
^an^dⁱⁿ^f^o^r^m^atioⁿ^6.9⁴^.4^3.4¹^.3^1.3¹^.2^2.1²^.1
^t^e^c^hno^l^o^gy
^Of^fⁱ^{ce of}^th^{e In}^s^p^ector^2.2²^.5^2.6²^.6^2.5²^.5^3.0³^.0
^Gen^e^ral
^Offse^t^fo^r^c^eⁿ^sus-b^a^se^d^0.0⁰^.0^9.4¹^.8^1.8¹^.8^0.0⁰^.0
^r^eallo^catioⁿ^s
^Stu^d^en^{t loan}^repay^m^en^t^0.0⁰^.0^0.0⁰^.0^0.0⁰^.0^0.0⁰^.5
^prog^ram
^T^o^t^a^l^329.3^329.3^336.6^335.3^330.8^326.6^348.6^350.5
^Source:^T^a^{ble prepared by}^th^{e C}^oⁿ^g^r^es^sⁱ^on^{al R}^e^s^earch^Serv^ice.
^No^te:^T^h^{ese d}^a^{ta r}^e^f^l^{ect ap}^p^r^o^p^r^iatioⁿ^s^af^ter^{all r}^e^scissioⁿ^{s; n}^u^m^b^e^r^s^m^a^yⁿ^o^{t ad}^d^to^to^{tal d}^u^{e to}^r^o^uⁿ^dⁱⁿ^g^.
Distribution of LSC Funds
and Non-LSC Resources
LSC funds appropriated for basic field programs are distributed to the states and
jurisdictions on a per capita basis, according to U.S. Bureau of the Census data¹³ on¹⁴
the number of “poor” persons in each service area. Grantees within each state or
jurisdiction then compete among themselves for funding.
Although the LSC is the largest single source of funding for the civil legal
services system in the United States, it is not the only source of funding. Local legal
services programs supplement their LSC grants with funds from a variety of
governmental and private sources. Non-LSC funding sources include state and local
grants; state Interest on Lawyers’ Trust Accounts (IOLTAs) programs;¹⁵ federal
programs such as the Title XX Social Services Block Grant, the Older Americans
Act, the Violence Against Women Act, and Community Development Block Grants;
and private grants from entities such as the United Way, foundations, and national,
state, and local bar associations. In addition, private attorneys accept referrals to

¹³ The census data is based on the most recent decennial census — currently, the year 2000.
¹⁴ In other words, if a specific state has 12% of the U.S. poverty population, that state
generally would receive about 12% of the LSC funding amount allocated for local legal
services programs.
¹⁵ These funds represent interest earned on sums deposited by clients with attorneys for short
periods of time.

provide legal services to the poor, primarily through LSC-funded pro bono
programs.¹⁶
As shown in Table 3, in 2007, LSC funding accounted for about 42% of the¹⁷
$844.4 million spent in the United States for civil legal services for the poor.
Table 3. Funding for LSC and Non-LSC Programs,
by Jurisdiction, FY2007
^LSC^Num^b^er^No^n-L^S^C^LSC
^F^unding^{of L}^S^C^F^unding^To^t^a^l^as^{a %}
^St^a^t^e^FY²⁰⁰⁷^Program^s^FY²⁰⁰⁷^F^unding^{of T}^o^tal
^A^l^abam^a⁶^,463,907¹^984,747^7,448,654^86.8
^A^l^as^k^a^1,271,971¹¹^,741,210^3,013,181^42.2
^A^rⁱ^z^on^a⁹^,916,097³⁴^,573,845^14,489,942^68.4
^A^r^k^aⁿ^s^as^3,808,626²¹^,699,733^5,508,359^69.1
^C^a^lⁱ^f^ornⁱ^a^45,808,829¹¹^45,180,132^90,988,961^50.3
^C^o^l^o^rado^3,609,142¹⁷^,414,826^11,023,968^32.7
^C^oⁿⁿ^ectⁱ^c^u^t^2,590,894¹^149,787^2,740,681^94.5
^D^e^l^a^w^a^re^625,739¹^518,862^1,144,601^54.7
^Dⁱ^s^t^ri^ct^of^C^o^l^u^m^bⁱ^a^983,988¹^407,723^1,391,711^70.7
^F^l^ori^d^a^19,152,571⁷^17,351,369^36,503,940^52.5
^G^e^orgⁱ^a⁹^,502,812²^13,048,243^22,551,055^42.1
^H^a^w^aⁱⁱ^1,598,503²⁵^,057,743^6,656,246^24.0
^Idah^o¹^,409,850¹¹^,074,450^2,484,300^56.8
^Illin^ois^11,699,140³^16,956,750^28,655,890^40.8
^In^di^an^a⁵^,426,207¹²^,536,419^7,962,626^68.1
^Iow^a^2,369,374¹⁴^,873,282^7,242,656^32.7
^K^aⁿ^s^as^2,309,399¹⁶^,823,114^9,132,513^25.3
^K^eⁿ^t^u^c^k^y^6,185,115⁴^12,391,043^18,576,158^33.3
^L^o^uⁱ^sⁱ^an^a⁸^,406,311⁴⁴^,785,869^13,192,180^63.7
^Maiⁿ^e¹^,420,593¹⁴^,173,143^5,593,736^25.4
^Mary^l^aⁿ^d^3,978,010¹^18,483,060^22,461,070^17.7
^Mas^s^ach^u^s^et^t^s^5,468,715⁴¹^,652,312^7,121,027^76.8
^Mi^chⁱ^g^an^9,621,410⁶^12,907,858^22,529,268^42.7
^Miⁿⁿ^e^s^o^t^a^3,695,306⁵^14,893,503^18,588,809^19.9
^Mi^s^sⁱ^s^sⁱ^ppi^5,281,120²²^,331,820^7,612,940^69.4
^Mi^s^s^o^u^rⁱ⁵^,832,090⁴^10,651,490^16,483,580^35.4
^Mon^t^an^a¹^,423,153¹¹^,843,601^3,266,754^43.6
^N^e^bras^k^a^1,470,195¹^492,878^1,963,073^74.9
^N^e^v^a^da^1,987,552¹^503,142^2,490,694^79.8
^N^e^w^H^a^m^p^s^hⁱ^r^e^691,432¹^150,436^841,868^82.1

¹⁶ In 2007, approximately 31,000 private attorneys accepted referrals to help LSC clients.
¹⁷ Legal Services Corporation, Legal Services Corporation Fact Book 2007, June 2008,
[ h t t p : / / www.l s c.go v/ pdf s/ f a ct book2007.pdf ] .

^LSC^Num^b^er^No^n-L^S^C^LSC
^F^unding^{of L}^S^C^F^unding^To^t^a^l^as^{a %}
^St^a^t^e^FY²⁰⁰⁷^Program^s^FY²⁰⁰⁷^F^unding^{of T}^o^tal
^N^e^w^Jers^ey^6,684,595⁶^43,744,148^50,428,743^13.3
^N^e^w^Mexⁱ^co^3,458,198¹²^,342,217^5,800,415^59.6
^N^e^w^Y^o^rk^25,651,160⁷^54,178,907^79,830,067^32.1
^N^o^rt^h^C^a^rolⁱⁿ^a⁹^,632,153¹^11,124,691^20,756,844^46.4
^N^o^rt^h^D^a^k^o^t^a^993,516¹¹^,424,393^2,417,909^41.1
^O^hⁱ^o^10,857,758⁶^46,015,263^56,873,021^19.1
^O^k^l^a^h^o^m^a^5,539,055²⁵^,631,925^11,170,980^49.6
^O^r^eg^on^3,658,517¹⁴^,514,758^8,173,275^44.8
^Penⁿ^s^y^l^v^aⁿⁱ^a^11,832,331⁸^25,630,759^37,463,090^31.6
^R^h^{ode Is}^l^aⁿ^d^1,073,387¹²^,725,225^3,798,612^28.3
^S^o^u^t^h^C^a^rolⁱⁿ^a⁵^,303,683¹³^,972,905^9,276,588^57.2
^S^o^u^t^h^D^a^k^o^t^a^1,781,220²¹^,163,818^2,945,038^60.5
^T^eⁿⁿ^e^s^s^e^e⁷^,470,959⁴^12,136,886^19,607,845^38.1
^T^e^x^a^s^32,201,428³^19,896,888^52,098,316^61.8
^U^t^ah^1,989,701¹²^,619,500^4,609,201^43.2
^V^e^rm^on^t^547,546¹^34,892^582,438^94.0
^Vⁱ^rgⁱⁿⁱ^a^6,229,887⁶⁸^,536,770^14,766,657^42.2
^Was^hⁱⁿ^g^t^on^7,375,225¹^12,967,184^20,342,409^36.3
^Wes^t^Vⁱ^rgⁱⁿⁱ^a^2,830,468¹³^,744,827^6,575,295^43.0
^Wi^s^c^on^sⁱⁿ⁵^,052,482²⁶^,170,513^11,222,995^45.0
^Wy^omⁱⁿ^g^720,493¹^50,500^770,993^93.5
^A^m^eri^can^S^a^m^o^a^94,627¹⁰^94,627^100.0
^G^u^am^340,818¹^579,928^920,746^37.0
^Mi^cron^esⁱ^a^1,600,722¹^583,139^2,183,861^73.3
^Pu^ert^o^Rⁱ^co^16,885,393²³^,790,003^20,675,396^81.7
^Vⁱ^rgⁱⁿ^Is^l^aⁿ^d^s^332,208¹^974,437^1,306,645^25.4
^T^o^tal:^334,891,813¹³²^484,279,359^819,171,172^40.9
^States^an^{d DC}
^T^o^{tal: States, DC,}^354,145,581¹³⁸^490,206,866^844,352,447^41.9
^an^{d T}^e^rri^t^o^ri^es
^Source:^T^a^{ble prepared by}^th^{e C}^oⁿ^g^r^es^sⁱ^on^al^R^e^s^earch^Serv^{ice, u}^sⁱⁿ^g^{data f}^r^om^th^{e L}^e^g^a^{l Serv}^ices
^C^o^rporatⁱ^oⁿ^,^L^e^gal^Ser^vⁱ^ces^C^o^r^por^atⁱ^{on Fact}^{Book 2007}^{, J}^une²^{008, [h}^ttp://^www.
^l^s^c.g^o^v^/^pdf^s^/^f^act^book^2007.pdf^{]. C}^o^m^pⁱ^l^a^tⁱ^oⁿ^of^s^t^at^{e an}^{d t}^e^rri^t^o^ry^p^r^o^g^r^a^m^dat^aⁱ^s^bas^e^{d on}
ⁱⁿ^f^o^r^m^a^tⁱ^oⁿ^f^r^o^m^t^h^e^L^S^C^we^b^sⁱ^t^e^[^h^t^t^p^:^/^/^www.^l^s^c^.^g^o^v^/^ma^p^/ⁱⁿ^d^e^x^.^p^h^p^]^.