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Legal Services Corporation: Background
and Funding
Carmen Solomon-Fears
Specialist in Social Policy
August 5, 2009
Congressional Research Service
7-5700
www.crs.gov
RL34016
CRS Report for Congress
P
repared for Members and Committees of Congress
c11173008
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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 29 years under annual appropriations laws. The LSC is currently funded
at $390 million for FY2009 (P.L. 111-8). Current LSC funding remains below the LSC’s highest
funding level of $400 million in FY1994 and FY1995. The Obama Administration’s FY2010
budget request included $435 million for the LSC. On June 18, 2009, the House passed
legislation that would appropriate $440 million for the LSC for FY2010. On June 25, 2009, the
Senate Appropriations Committee approved $400 million in funding for the LSC for FY2010.
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.
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Legal Services Corporation: Background and Funding
Contents
Introduction ................................................................................................................................ 1
Program Mechanics .................................................................................................................... 1
Restrictions on Activities....................................................................................................... 2
Clients and Cases ........................................................................................................................ 3
Funding History .......................................................................................................................... 5
FY1996................................................................................................................................. 5
FY1997-FY2001................................................................................................................... 6
FY2002-FY2005................................................................................................................... 6
FY2006-FY2008................................................................................................................... 7
FY2009................................................................................................................................. 8
FY2010................................................................................................................................. 9
Distribution of LSC Funds and Non-LSC Resources ................................................................. 11
Figures
Figure 1. LSC Cases Closed in 2007, by Legal Problem .............................................................. 4
Tables
Table 1. LSC Appropriations History........................................................................................... 5
Table 2. LSC: Funding for Program Components, FY2001-FY2009 .......................................... 10
Table 3. Funding for LSC and Non-LSC Programs, by Jurisdiction, FY2007 ........................... 11
Contacts
Author Contact Information ...................................................................................................... 13
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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 program of legal
LSC Laws and
services for the poor since 1966. Originally, the program was
Appropriations
administered through the Office of Economic Opportunity, a
P.L. 93-355 (July 25, 1974)
now-defunct agency that had led the War on Poverty in the
P.L. 95-222 (Dec. 28, 1977)
mid-1960s. In 1971, President Nixon proposed establishment
of a separate corporation to deliver legal services to insulate
P.L. 105-12 (Apr. 30, 1997)
the program from political pressure.1 Authorizing legislation
P.L. 106-185 (Apr. 25, 2000)
was enacted in 1974 (P.L. 93-355), and the LSC came into
P.L. 104-134 (Apr. 26, 1996)
existence the following year. In 1977, the LSC was extended
P.L. 104-208 (Sept. 30, 1996)
through FY1980 (P.L. 95-222). Although Congress has not
reauthorized the LSC statute since FY1980, it has continued to
P.L. 105-119 (Nov. 26, 1997)
fund LSC every year, and has included legislative language
P.L. 105-277 (Oct. 21, 1998)
affecting LSC activities in the annual appropriations laws.
P.L. 106-113 (Nov. 29, 1999)
P.L. 106-553 (Dec. 21, 2000)
Program Mechanics
P.L. 107-77 (Nov. 28, 2001)
P.L. 108-7 (Feb. 20, 2003)
The LSC does not provide legal services directly. Rather, it
P.L. 108-199 (Jan. 23, 2004)
funds local legal services providers, referred to by the LSC as
“grantees.” Grantees may include nonprofit organizations that
P.L. 108-447 (Dec. 8, 2004)
have as a purpose the provision of legal assistance to eligible
P.L. 109-108 (Nov. 22, 2005)
clients, private attorneys, groups of private attorneys or law
P.L. 110-5 (Feb. 15, 2007)
firms, state or local governments, and certain sub-state regional
P.L. 110-161 (Dec. 26, 2007)
planning and coordination agencies.
P.L. 110-329 (Sept. 30, 2008)
During 2007, the LSC funded 138 local programs in 923
P.L. 111-8 (Mar. 11, 2009)
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
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.
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eligibility criteria, under which a client’s household income may not exceed 125% of the federal
poverty guidelines.2 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
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:
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).
4 Legal Services Corporation. State Planning—A Five Year Overview, 2005, pp. 1-7, http://www.lsc.gov/pdfs/
030194_sp5yrrprt.pdf.
5 Ibid., p. 8.
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• 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.
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.6
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,
LSC Cases
separation, child custody, support, adoption, spousal abuse, child abuse or
Closed
neglect); housing issues (evictions, foreclosures); welfare or other income
FY2002: 978,834
maintenance program issues (access to health care, unemployment
FY2003: 935,793
compensation benefit claims); consumer and finance issues (consumer
fraud, debt collection); and individual rights (employment, health, juvenile,
FY2004: 901,067
and education).
FY2005: 906,338
FY2006: 895,488
FY2007: 906,507
6 For additional information, see CRS Report R40679, Legal Services Corporation: Restrictions on Activities.
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During 2007, legal services attorneys closed 906,507 cases. Family issues such as divorce and
separation, custody and visitation, domestic abuse, and child support were the substance of about
38% of cases handled by field offices; housing issues, including eviction cases, comprised about
25% of cases; income maintenance issues represented another 11% of cases; and consumer
finance and individual rights issues comprised about 26% of cases. Most of the cases handled by
LSC are resolved through advice and referral. In 2007, only about 13% 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.7
Figure 1. LSC Cases Closed in 2007, by Legal Problem
Consumer
Other
Finance
14.3%
11.5%
Income
Maintenanc
e 11.4%
Family
37.6%
Housing
25.2%
Source: Figure prepared by the Congressional Research Service.
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, and
Race and Ethnicity
victims of natural disasters such as Hurricane Katrina. In
of LSC Clients, 2007
2007, 73% of LSC clients were females and 27% were
males. Approximately 85% of LSC clients were between
the ages of 18 and 59, 13% were age 60 or older, and 2%
White, not Hispanic
46.4%
Black, not Hispanic
25.1%
were under age 18.
Hispanic
20.3%
Native American
2.3%
In 2005, LSC staff were directed by the LSC to document
Asian or Pacific
2.4%
the extent to which the civil legal needs of low-income
Islander
persons were not being met. Based on three
Other
3.4%
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
7 Legal Services Corporation, Legal Services Corporation Fact Book 2007, June 2008, http://www.lsc.gov/pdfs/
factbook2007.pdf.
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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.8
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 FY2009. 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 $ FY $ FY $ FY $ FY $
1976 92 1990 317 1995 400 2000 304 2005 331
1980 300 1991 328 1996 278 2001 329 2006 327
1984 275 1992 350 1997 283 2002 329 2007 349
1988 306 1993 357 1998 283 2003 337 2008 351
1989 309 1994 400 1999 300 2004 335 2009 390
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):
8 Legal Services Corporation. Documenting the Justice Gap in America—The Current Unmet Civil Legal Needs of
Low-Income Americans. September 2005, available at http://www.lsc.gov/press/documents/
LSCJusticeGap_FINAL_1001.pdf.
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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 better use every federal dollar allocated to them.9
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
9 Legal Services Corporation, A Special Report to Congress, State Planning & Reconfiguration, September 2001, pp.
2-3, 10.
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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.
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
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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.10 The
Administration’s budget request included $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 provided 11% more than the FY2008 LSC appropriation
and 25% more than the FY2009 request for the LSC. It included $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.
For FY2009, the Senate Appropriations Committee, like the House committee, also approved
$390 million for the LSC. However, the Senate committee bill (S. 3182) included $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
10 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.
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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.11
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.12
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, required 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.
P.L. 111-8, the Omnibus Appropriations Act, 2009 (enacted March 11, 2009), includes $390.0
million for the LSC for FY2009. This amount is $39.5 million above the FY2008 appropriation
for the LSC and $79.0 million above the Bush Administration’s FY2009 budget request for the
LSC. The FY2009 appropriation for the LSC includes $365.8 million for basic field programs and
required independent audits, $16.0 million for management and administration, $3.0 million for
client self-help and information technology, $4.2 million for the Office of the Inspector General,
and $1.0 million for loan repayment assistance.
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.13 (See the earlier section titled “Restrictions on Activities.”) Table 2
shows LSC appropriations for FY2001-FY2009, by component of funding.
FY2010
For FY2010, the Obama Administration requested $435 million for the LSC.14 This amount is
$45 million (11.5%) above the FY2009 appropriation of $390 million for the LSC. The
Administration’s budget request included $410.4 million for basic field programs and required
independent audits; $17 million for management and grants oversight; $3.4 million for client self-
help and information technology; $3.2 million for the Office of the Inspector General; and $1
11 See sections 2305 and 2401 of P.L. 110-289.
12 See section 431 of P.L. 110-315.
13 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.
14 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 FY2010, the LSC requested an
appropriation of $485.1 million, an 11.5% increase over the President’s budget request of $435 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.
Congressional Research Service
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Legal Services Corporation: Background and Funding
million for loan repayment assistance. The Obama Administration also proposed that LSC
restrictions on class action suits and attorneys’ fees be eliminated.
For FY2010, the House Appropriations Committee approved $440 million for the LSC (H.Rept.
111-149). The House bill (H.R. 2847) provided almost 13% more than the FY2009 LSC
appropriation and 1% more than the Administration’s FY2010 budget request for the LSC. The
House approved $440 million for the LSC on June 18, 2009. The House voted to continue
existing limitations on the use of LSC funds (and non-LSC funds) except for the restriction on the
ability of LSC-funded programs to collect attorneys’ fees. The House bill also included funds for
a loan repayment assistance program to help legal services programs recruit and retain talented
attorneys.
For FY2010, the Senate Appropriations Committee approved $400 million for the LSC. The
Senate bill provides about 3% more than the FY2009 LCS appropriation and 8% less than the
Administration’s FY2010 request for the LSC. The Senate bill would continue existing
limitations on the use of federal funds but would eliminate the restrictions on the use of non-
federal funds except in litigation involving abortion and cases involving prisoners.
Table 2. LSC: Funding for Program Components, FY2001-FY2009
($ in millions)
LSC
Program
FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
Components
Basic field
programs
309.3 310.0 308.0 316.4 312.4 308.4 330.8 332.5 365.8
Management
and
10.8 12.4 13.2 13.0 12.8 12.7 12.7 12.5 16.0
administration
Client self-help
and
6.9 4.4 3.4 1.3 1.3 1.2 2.1 2.1 3.0
information
technology
Office of the
Inspector
2.2 2.5 2.6 2.6 2.5 2.5 3.0 3.0 4.2
General
Offset for
census-based
0.0 0.0 9.4 1.8 1.8 1.8 0.0 0.0 0.0
reallocations
Student loan
repayment
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 1.0
program
Total
329.3 329.3 336.6 335.3 330.8 326.6 348.6 350.5 390.0
Source: Table prepared by the Congressional Research Service.
Note: These data reflect appropriations after al rescissions; numbers may not add to total due to rounding.
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Legal Services Corporation: Background and Funding
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 data15 on the number of “poor” persons
in each service area.16 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;17 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 provide legal services to the
poor, primarily through LSC-funded pro bono programs.18
As shown in Table 3, in 2007, LSC funding accounted for about 42% of the $844.4 million spent
in the United States for civil legal services for the poor.19
Table 3. Funding for LSC and Non-LSC Programs,
by Jurisdiction, FY2007
LSC
Number
Non-LSC
LSC
Funding
of LSC
Funding
Total
as a %
State
FY2007
Programs
FY2007
Funding
of Total
Alabama
6,463,907 1
984,747 7,448,654 86.8
Alaska
1,271,971 1 1,741,210
3,013,181
42.2
Arizona
9,916,097 3 4,573,845
14,489,942
68.4
Arkansas
3,808,626 2 1,699,733
5,508,359
69.1
California 45,808,829
11
45,180,132
90,988,961
50.3
Colorado
3,609,142 1 7,414,826
11,023,968
32.7
Connecticut
2,590,894 1
149,787 2,740,681 94.5
Delaware
625,739
1
518,862 1,144,601 54.7
District
of
Columbia
983,988
1
407,723 1,391,711 70.7
Florida
19,152,571 7 17,351,369
36,503,940
52.5
Georgia 9,502,812
2
13,048,243
22,551,055
42.1
15 The census data is based on the most recent decennial census—currently, the year 2000.
16 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.
17 These funds represent interest earned on sums deposited by clients with attorneys for short periods of time.
18 In 2007, approximately 31,000 private attorneys accepted referrals to help LSC clients.
19 Legal Services Corporation, Legal Services Corporation Fact Book 2007, June 2008, http://www.lsc.gov/pdfs/
factbook2007.pdf.
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Legal Services Corporation: Background and Funding
LSC
Number
Non-LSC
LSC
Funding
of LSC
Funding
Total
as a %
State
FY2007
Programs
FY2007
Funding
of Total
Hawai
1,598,503 2 5,057,743
6,656,246
24.0
Idaho
1,409,850 1 1,074,450
2,484,300
56.8
Illinois 11,699,140 3 16,956,750 28,655,890 40.8
Indiana
5,426,207 1 2,536,419
7,962,626
68.1
Iowa
2,369,374 1 4,873,282
7,242,656
32.7
Kansas
2,309,399 1 6,823,114
9,132,513
25.3
Kentucky 6,185,115
4
12,391,043
18,576,158
33.3
Louisiana
8,406,311 4 4,785,869
13,192,180
63.7
Maine
1,420,593 1 4,173,143
5,593,736
25.4
Maryland 3,978,010
1
18,483,060
22,461,070
17.7
Massachusetts
5,468,715 4 1,652,312
7,121,027
76.8
Michigan 9,621,410
6
12,907,858
22,529,268
42.7
Minnesota 3,695,306
5
14,893,503
18,588,809
19.9
Mississippi
5,281,120 2 2,331,820
7,612,940
69.4
Missouri 5,832,090
4
10,651,490
16,483,580
35.4
Montana
1,423,153 1 1,843,601
3,266,754
43.6
Nebraska
1,470,195 1
492,878 1,963,073 74.9
Nevada
1,987,552 1
503,142 2,490,694 79.8
New Hampshire
691,432
1
150,436
841,868
82.1
New Jersey
6,684,595
6
43,744,148
50,428,743
13.3
New
Mexico
3,458,198 1 2,342,217
5,800,415
59.6
New
York
25,651,160 7 54,178,907
79,830,067
32.1
North Carolina
9,632,153
1
11,124,691
20,756,844
46.4
North Dakota
993,516
1
1,424,393
2,417,909
41.1
Ohio
10,857,758 6 46,015,263
56,873,021
19.1
Oklahoma
5,539,055 2 5,631,925
11,170,980
49.6
Oregon
3,658,517 1 4,514,758
8,173,275
44.8
Pennsylvania
11,832,331 8 25,630,759
37,463,090
31.6
Rhode
Island
1,073,387 1 2,725,225
3,798,612
28.3
South
Carolina
5,303,683 1 3,972,905
9,276,588
57.2
South
Dakota
1,781,220 2 1,163,818
2,945,038
60.5
Tennessee 7,470,959
4
12,136,886
19,607,845
38.1
Texas
32,201,428 3 19,896,888
52,098,316
61.8
Utah
1,989,701 1 2,619,500
4,609,201
43.2
Vermont 547,546
1
34,892
582,438
94.0
Virginia
6,229,887 6 8,536,770
14,766,657
42.2
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Legal Services Corporation: Background and Funding
LSC
Number
Non-LSC
LSC
Funding
of LSC
Funding
Total
as a %
State
FY2007
Programs
FY2007
Funding
of Total
Washington 7,375,225
1
12,967,184
20,342,409
36.3
West
Virginia
2,830,468 1 3,744,827
6,575,295
43.0
Wisconsin
5,052,482 2 6,170,513
11,222,995
45.0
Wyoming 720,493
1
50,500
770,993
93.5
American Samoa
94,627
1
0
94,627
100.0
Guam 340,818
1
579,928
920,746
37.0
Micronesia
1,600,722 1
583,139 2,183,861 73.3
Puerto Rico
16,885,393
2
3,790,003
20,675,396
81.7
Virgin
Islands
332,208
1
974,437 1,306,645 25.4
Total:
States and DC
334,891,813 132 484,279,359
819,171,172
40.9
Total: States, DC,
and Territories
354,145,581
138
490,206,866
844,352,447
41.9
Source: Table prepared by the Congressional Research Service, using data from the Legal Services Corporation,
Legal Services Corporation Fact Book 2007, June 2008, http://www.lsc.gov/pdfs/factbook2007.pdf. Compilation of
state and territory program data is based on information from the LSC website http://www.lsc.gov/map/
index.php.
Author Contact Information
Carmen Solomon-Fears
Specialist in Social Policy
csolomonfears@crs.loc.gov, 7-7306
Congressional Research Service
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