Legal Aid’s Funding Freeze: Thousands in North Carolina Face Legal Uncertainty
For many in North Carolina facing civil legal battles, NC Legal Aid has been a lifeline. The organization offers essential legal representation for those unable to afford it. However, recent funding changes may leave thousands without this crucial support.
Jonathan Perry, who managed Legal Aid’s Boone office before its closure, highlights the urgent needs of their clients. “It could be somebody that’s landlord is evicting them, and they need representation in court. It could be a woman in Watauga county that is the victim of abuse or a sexual assault that is trying to get a restraining order against somebody,” Perry said.
Unfortunately, due to a provision in the recent Public Safety Act, Legal Aid anticipates serving 8,000 fewer clients in 2026. This has forced Perry to make difficult choices regarding prioritizing cases. “I have to prioritize. Obviously, somebody going through an active [domestic violence case]. That’s a priority right now with the staff that I have, versus, like, some of the expungement clinics that we typically do, or the will clinics that we do for free,” he noted.
The funding halt stems from concerns about IOLTA — Interest on Lawyers Trust Accounts — which helps fund Legal Aid. These accounts, which accumulate interest from client funds held by lawyers, provided $12 million in grants in 2025. However, IOLTA’s grant allocations came under scrutiny during a House oversight committee meeting.
Republican Chairman Harry Warren expressed concerns, stating, “IOLTA does good work, and we have seen evidence of that, but also it’s gone somewhat rogue, awarding grants to leftist groups with leftist ideologies.” Concerns were raised about grants going to organizations with pro-diversity or social justice missions, which, according to Warren, contradicts IOLTA’s restrictions on funding advocacy groups.
Representative Mike Schietzelt, a Republican from Wake County, voiced worries over the ramifications of the funding freeze, emphasizing the critical work done by Legal Aid and similar organizations in areas impacted by disasters like Hurricane Helene.
Ashley Campbell, NC Legal Aid’s director, stated that half of the previous year’s grant funds, approximately $6 million, went to their organization, making up 15% of their budget. “So we have had to announce we are closing nine offices, primarily in rural communities, and we have laid off or vacated approximately 50 staff positions,” she said. This reduction translates to thousands of North Carolinians missing out on vital legal assistance.
To illustrate the impact, Campbell shared a story of a client affected by Hurricane Helene. After losing his home and wife, Legal Aid assisted him in obtaining FEMA benefits and negotiating with his bank to prevent foreclosure. However, with the current resource constraints, Campbell expressed concerns about the ability to respond to future disasters.
Although the funding freeze is set to lift at the end of June, Campbell fears that the fallout will extend throughout 2026. “Even if they allow them to begin making grants again, they have to go through a grant-making process,” she explained.
While efforts to bridge the funding gap have been made, Campbell acknowledged, “nobody can fill a $6.5 million hole. Period. End of story.” Despite some legislative support, the funding freeze remains in place, casting uncertainty over the availability of free legal services in the coming year.
