Order Code 95-178 EPW
Updated June 24, 2005
CRS Report for Congress
Received through the CRS Web
Legal Services Corporation:
Basic Facts and Current Status
Carmen Solomon-Fears
Domestic Social Policy Division
Summary
The Legal Services Corporation (LSC) is a private nonprofit, federally funded
corporation that helps provide legal assistance to low-income people in civil matters.
Although the authorization of appropriations for the Corporation expired at the end of
FY1980, the LSC has operated for the past 25 years under annual appropriations laws.
P.L. 108-447 included $335.3 million for FY2005 for the LSC and also included a 0.8%
across-the-board rescission and an additional 0.54% rescission of funding for the
Commerce, Justice, State, Judiciary, and Related Agencies appropriation (which
includes the LSC), thereby lowering the FY2005 LSC appropriation to $330.8 million.
For FY2006, the Bush Administration requested $318.3 million for the LSC. On June
16, 2005, the House passed H.R. 2862, which includes $330.8 million for the LSC for
FY2006 (H.Rept. 109-118). On June 23, the Senate Appropriations Committee
recommended $324.5 million for the LSC (S.Rept. 109-88). This report, which is
regularly updated, provides background information and tracks relevant legislation and
appropriations.
Legislative History
The federal government has administered a program of legal services for the poor
since 1966. Originally, the program was administered through the Office of Economic
Opportunity, a now-defunct agency that had spearheaded the War on Poverty in the mid-
1960s. In 1971, President Nixon proposed establishment of a separate corporation to
deliver legal services to insulate the program from political pressure. Authorizing
legislation was enacted in 1974 (P.L. 93-355), and the LSC came into existence the
following year. In 1977, Congress extended the Legal Services Corporation Act through
FY1980 (P.L. 95-222). Although Congress has not reauthorized the LSC statute since
FY1980, it has continued to fund the LSC every year and has included legislative
language affecting LSC activities in annual appropriations laws.
Congressional Research Service ˜ The Library of Congress

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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 two
legal services attorneys for every 10,000 poor people. 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
to achieve minimum access. Currently there is one legal services attorney for every 11,500
poor people. Funds for the LSC are (beginning in CY2005) 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 (first full year of
program operations) to FY2005. Current funding still remains below the LSC’s highest
funding level of $400 million in FY1994 and FY1995. LSC funding accounts for about
half of all funding in the U.S. for civil legal services for the poor.
Table 1. LSC Appropriations History
($ in millions)
FY
$
FY
$
FY
$
FY
$
FY
$
1976
92
1990
317
1995
400
2000
304
2005
331
1980
300
1991
328
1996
278
2001
329
1984
275
1992
350
1997
283
2002
329
1988
306
1993
357
1998
283
2003
337
1989
309
1994
400
1999
300
2004
335
FY1996. 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-FY2000. 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 was thereby decreased to $304 million (P.L. 106-113).
FY2001. 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. The proposal would have
continued all existing restrictions on LSC-funded activities. For FY2001, the House

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Appropriations Committee recommended a total of $141 million for the LSC (H.R. 4690).
On June 26, 2000, the House approved H.R. 4690 which included $275 million for the
LSC. For FY2001, the Senate Appropriations Committee recommended a total of $300
million for the LSC. The Senate, however, did not vote on its version of the bill. Instead,
it approved the version approved by the conference committee, which was agreed to on
October 26, 2000. The conference report on H.R. 4942 (H.Rept. 106-1005) provided
$330 million for LSC for FY2001. Both the House and the Senate approved the
conference committee recommendation for LSC. H.R. 4942, signed by President Clinton
on December 21, 2000 as P.L. 106-553, included $330 million for LSC. (See Table 2 for
funding for the components of the LSC for FY2001-FY2005.) The reader should note that
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. For FY2002, the Bush Administration requested $329.3 million for LSC.
For FY2002, the House Appropriations Committee recommended a total of $329.3
million for LSC. In carrying out 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 better 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 LSC to review the state planning process and the
concerns raised and report back to the Committee by September 4, 2001, with a proposal
(including input from the stakeholders) that outlined the reconfiguration standards and the
process for states to appeal LSC’s decisions. On July 18, 2001, the House passed H.R.
2500, which included $329.3 million for LSC. For FY2002, the Senate Appropriations
Committee also recommended $329.3 million for LSC. On September 13, 2001, the
Senate passed H.R. 2500, which included $329.3 million for LSC.
The conference report on H.R. 2500 included $329.3 million for LSC for FY2002.
This was identical to the FY2001 appropriation for LSC (after the rescission) and the
Bush Administration’s FY2002 budget request for LSC. It also included existing
provisions restricting the activities of LSC grantees. The conference report (H.Rept. 107-
278) was passed by the House on November 14, 2001, and by the Senate on November
15, 2001. H.R. 2500 was signed into law (P.L. 107-77) on November 28, 2001.
FY2003. For FY2003, the Bush Administration requested $329.3 million for LSC.
On July 18, 2002, the Senate Appropriations Committee recommended a total of $329.4
million for the LSC for FY2003 (S. 2778; see S.Rept. 107-218). This is $97,000 above
the FY2002 appropriation for LSC and the Bush Administration’s FY2003 budget request
for the LSC (it included funds for a 4.1% pay adjustment). The House did not introduce
a bill for CJS appropriations for FY2003. H.J.Res. 18 (P.L. 108-5), the eighth continuing
resolution for FY2003 appropriations, passed by both the House and Senate on February
5, 2003, among other things, continued funding of the LSC at the FY2002 level through
February 20, 2003. H.J.Res. 2, which was amended and agreed to (S.Amdt. 1) by the
Senate on January 23, is an omnibus appropriations bill that, among other things, would
have increased LSC funding by $19 million to $348.4 million in FY2003 to ensure that
no service area receives less LSC funding for FY2003 than the area received for FY2002
as a result of the change in state poverty populations (based on 2000 Census data). On
February 13, 2003 before H.J.Res. 18 expired both the House and Senate passed the

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conference report on H.J.Res. 2. P.L. 108-7 (signed into law on February 20, 2003)
increased the LSC funding by $9.5 million to $338.8 million for FY2003 to offset
decennial Census funding reallocations. It also continued all existing restrictions on LSC-
funded activities. P.L. 108-7 mandated a 0.65% across-the-board rescission, thus the
FY2003 appropriation for the LSC was $336.6 million.
FY2004. For FY2004, the Bush Administration requested $329.3 million for the
LSC. On July 16, 2003, the House Appropriations Committee recommended a total of
$338.8 million for the LSC for FY2004 (H.R. 2799; see H.Rept. 108-221). This is $2.2
million above the FY2003 appropriation for LSC (the same amount as the original
FY2003 appropriation before the 0.65% rescission); and $9.5 million above the Bush
Administration’s FY2004 budget request for the LSC. On July 23, 2003, the House
passed H.R. 2799 which included $338.8 million for the LSC. On September 5, 2003, the
Senate Appropriations Committee also recommended $338.8 million for the LSC for
FY2004 (S. 1585; see S.Rept. 108-144).
On December 8, 2003, the House passed H.R. 2673, the conference report (H.Rept.
108-401) on a consolidated appropriations bill. The conference agreement included
$338.8 million for the LSC, as proposed in both the House and Senate bills. It also
included existing provisions restricting the activities of LSC grantees. Moreover, H.R.
2673 authorized 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 includes the LSC), thereby lowering the
FY2004 LSC appropriation to $335.3 million. The Senate passed H.R. 2673 on January
22, 2004; and it became P.L. 108-199 on January 23, 2004.
FY2005. For FY2005, the Bush Administration requested $329.3 million for the
LSC. The budget request also included existing provisions restricting the activities of
LSC grantees. On June 23, 2004, the House Appropriations Committee recommended
$335.3 million for the LSC for FY2005 (H.R. 4754; see H.Rept. 108-576). This amount
is the same as the FY2004 appropriation for the LSC (after the rescissions); and $6.0
million above the Bush Administration’s FY2005 budget request for the LSC. It also
included existing provisions restricting the activities of LSC grantees. Also, the House
Committee recommendation allows the LSC to spend up to $1 million of prior-year
funding balances for a law school student loan repayment pilot program in FY2005 to
encourage more lawyers to pursue careers in legal assistance. On July 8, 2004, the House
passed H.R. 4754 which included $335.3 million for the LSC for FY2005. On September
15, 2004, the Senate Appropriations Committee recommended $335.0 million for the LSC
for FY2005 (S. 2809; see S.Rept. 108-344), which included $2.849 million for grants to
offset losses due to Census adjustments. It also included existing provisions restricting
the activities of LSC grantees.
On November 20, 2004, the House passed H.R. 4818, the conference report (H.Rept.
108-792) on a consolidated appropriations bill. The conference agreement included
$335.3 million for the LSC ($1.8 million in grants to offset losses stemming from the
2000 census-based reallocations). It also included existing provisions restricting the
activities of LSC grantees. In addition, it allows the LSC to spend up to $1 million of
prior-year funding balances for a school student loan repayment pilot program. The
Senate also passed H.R. 4818 on November 20, but held it back because of a dispute with
the House over access to tax records of individual taxpayers; the House passed a

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resolution making the necessary changes on December 6; and H.R. 4818 became P.L.
108-447 on December 8, 2004. Further, P.L. 108-447 authorizes 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
includes the LSC), thereby lowering the FY2005 LSC appropriation to $330.8 million.
Table 2. LSC: Funding for Program Components, FY2001-FY2005
($ in millions)
LSC Program Components
FY2001
FY2002
FY2003
FY2004
FY2005
Basic field programs
$310.0
$310.0
$310.0
$317.5a
$316.6
Management and
administration
10.8
12.4
13.3
13.3
13.0
Client self-help and
information technology
7.0
4.4
3.4
3.0a
1.3
Inspector general office
2.2
2.5
2.6
2.6
2.6
Offset for census-based
reallocations
0.0
0.0
9.5
2.5
1.8
Total
$330.0
$329.3
$338.8
$338.8
$335.3
Note: This data reflect appropriation before any rescissions.
a. Numbers were rounded.
FY2006. For FY2006, the Bush Administration requested $318.3 million for the
LSC. The budget request also includes existing provisions restricting the activities of
LSC grantees. On June 16, 2005, the House passed the Appropriations Committee’s
recommended funding level of $330.8 million for the LSC for FY2006 (H.R. 2862; see
H.Rept. 109-118). This is the same amount as the FY2005 appropriation after the
rescissions; and $12.5 million above the Bush Administration’s FY2006 budget request
for the LSC. The House appropriation for the LSC includes $313.7 million for basic field
programs and required independent audits, $12.8 million for management and
administration, $1.8 million for client self-help and information technology, and $2.5
million for its Office of the Inspector General. The House bill also includes existing
provisions restricting the activities of LSC grantees. Also, the House bill includes text
that encourages the LSC to proceed with the planned pilot loan repayment assistance plan
for attorneys (no funding) and advises the LSC to reduce its rent for its office space (by
eliminating some office space and negotiating a more competitive cost per square foot).
On June 23, 2005, the Senate Appropriations Committee recommended $324.5
million for the LSC for FY2006 (S.Rept. 109-88). The Committee’s recommendation is
$6.3 million below the FY2005 LSC appropriation and $6.3 million above the
Administration’s FY2006 budget request for the LSC. The Senate Committee
recommendation includes existing provisions restricting the activities of LSC grantees.
Current Activities
Pursuant to its 1998 State Planning Initiative, the LSC has sought to streamline its
delivery system. During 2004, the LSC funded 143 local programs (which operated in all

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50 states, the District of Columbia, and five U.S. territories) employing about 3,700
attorneys. (See CRS Report RL32451, The Legal Services Corporation: Distribution of
Funding.) 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, which 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 participate in the delivery of legal aid to the poor.
The LSC is governed by an 11-member board, appointed by the President and confirmed
by the Senate, of which no more than six members may be of the same political party.
During 2004, legal services attorneys closed 901,067 cases. Family issues such as
child support, divorce, and separation were the substance of about 40% of cases handled
by field offices; housing issues, including eviction cases, comprised about 25% of cases;
income maintenance issues represented another 15% of cases; and consumer, finance, and
individual rights issues comprised about 20% of cases. Most of the cases handled by LSC
are resolved through advice and referral. Only about 14% of cases were resolved in court,
primarily because they involved family law issues (e.g., protective orders, child support,
etc.) in which court action was required by state law.
Restrictions on Activities
Since its inception, the legal services program has been controversial, and Congress
has imposed restrictions on the 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 nonfederal 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;1
or solicit clients. LSC grantees must establish priorities, and staff must agree in writing
not to engage in activities outside these priorities. Moreover, federal law prohibits 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.
1 On Feb. 28, 2001, the Supreme Court held in Legal Services Corporation v. Velazquez, 531 U.S.
533 (2001), that an LSC funding restriction related to welfare reform violates the First
Amendment (i.e., freedom of speech) rights of LSC grantees and their clients and is thereby
unconstitutional. It ruled that Congress had improperly prohibited lawyers from presenting
certain arguments to the courts, which had the effect of distorting the legal system and altering
the traditional role of lawyers as advocates for their clients.

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