Legal Services Corporation:
Background and Funding
Carmen Solomon-Fears
Specialist in Social Policy
January 29, 2014
Congressional Research Service
7-5700
www.crs.gov
RL34016
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., noncriminal) 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 Guam and the Virgin Islands, the Commonwealth of Puerto Rico, and Micronesia
(which includes the Commonwealth of the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Micronesia, and Palau).
Although the authorization of appropriations for the LSC expired at the end of FY1980, the LSC
has operated for the past 34 years under annual appropriations laws. Also, since FY1996, all of
the LSC appropriations laws have included language that restricts the activities of LSC grantees.
For FY2013, P.L. 113-6 directed LSC to re-examine its headquarters structure and identify areas
of duplication for consolidation or elimination in an effort to provide a more efficient and cost-
saving structure, and send more funding to those in the field in need of LSC services. LSC was
required to report these findings to the Committees on Appropriations within 90 days of
enactment. In addition, a technical change to the allocation formula for basic field grants was
included to reflect the shift in how the Census Bureau collects poverty data. The technical change
directs LSC to reallocate funding every three years based on poverty data from the U.S. Bureau of
the Census. P.L. 113-6 also provided a two-year phase-in of the changes. Although P.L. 113-6
included a total of $365 million for the LSC for FY2013, that sum does not take into account the
1.877% cut in the Commerce, Justice, Science, and Related Agencies Appropriations (which
includes the LSC), or the 0.2% across-the-board rescission included in P.L. 113-6, nor does it
include the sequestration of funds that took effect on March 1, 2013. LSC’s post-rescission, pre-
sequestration operating level for FY2013 was $358.4 million, which included the $1 million in
Hurricane Sandy Disaster Relief funds (that also was subject to sequestration) for the LSC to
provide assistance to low-income people in areas significantly affected by the super storm. LSC’s
post-rescission, post-sequestration operating level for FY2013 was $341 million.
Pursuant to P.L. 113-46 (the Continuing Appropriations Act, 2014), LSC’s funding level for
FY2014 was $341 million. P.L. 113-46 continued the FY2013 LSC appropriation level (post-
rescission and post-sequestration) through January 15, 2014, or whenever the FY2014 CJS
appropriations bill was signed into law, whichever came first. P.L. 113-76 (the Consolidated
Appropriations Act, 2014) included $365 million for the LSC for FY2014.
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 2012, the LSC funded 134 local
programs/grantees in 807 offices employing 3,945 attorneys. Local programs establish their own
priorities and financial eligibility criteria subject to the LSC limits that stipulate that clients
served may not have household income that exceeds 125% of the federal poverty guidelines, with
limited exceptions for some household incomes of up to 200% of those guidelines. In 2012, 71%
of LSC clients were females and 29% were males. The majority of LSC clients (84%) were
between the ages of 18 and 59, 14% were age 60 or older, and 2% were under the age of 18.
Almost 46% of LSC clients were non-Hispanic white, 27% were non-Hispanic black, almost 8%
were of other races, and 18% were Hispanic. In 2012, LSC grantees closed 809,830 cases
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Legal Services Corporation: Background and Funding
involving issues primarily related to families (divorce, child support, etc.), housing, income
maintenance, consumer finance, and health.
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 40% of all funding for civil legal services for the poor in the United States.
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Legal Services Corporation: Background and Funding
Contents
Introduction ...................................................................................................................................... 1
Program Mechanics ......................................................................................................................... 1
Restrictions on Activities ........................................................................................................... 3
Clients and Cases ............................................................................................................................. 3
Funding History ............................................................................................................................... 5
FY1996 ...................................................................................................................................... 6
FY1997-FY2001........................................................................................................................ 6
FY2002-FY2005........................................................................................................................ 7
FY2006-FY2008........................................................................................................................ 7
FY2009 ...................................................................................................................................... 9
FY2010 .................................................................................................................................... 10
FY2011 .................................................................................................................................... 11
FY2012 .................................................................................................................................... 12
FY2013 .................................................................................................................................... 13
FY2014 .................................................................................................................................... 15
Distribution of LSC Funds and Non-LSC Resources .................................................................... 16
Figures
Figure 1. LSC Cases Closed in 2012, by Legal Problem ................................................................. 4
Tables
Table 1. LSC Appropriations History for Selected Years ................................................................ 6
Table 2. LSC: Funding for Program Components, FY2004-FY2014 ............................................ 16
Table 3. Funding for LSC and Non-LSC Programs, by Jurisdiction, 2012 ................................... 17
Contacts
Author Contact Information........................................................................................................... 19
Congressional Research Service
Legal Services Corporation: Background and Funding
Introduction
The Legal Services Corporation (LSC) is a private, nonprofit,
federally funded corporation that helps provide legal assistance
LSC Laws and
to low-income people in noncriminal (i.e., civil) matters. The
Appropriations
LSC is governed by an 11-member board appointed by the
P.L. 93-355 (July 25, 1974)
President and confirmed by the Senate, of whom no more than
P.L. 95-222 (Dec. 28, 1977)
six members may be of the same political party. The primary
responsibility of the LSC is to manage and oversee the
P.L. 105-12 (Apr. 30, 1997)
congressionally appropriated federal funds that it distributes in
P.L. 106-185 (Apr. 25, 2000)
the form of grants to local legal services providers, which in
P.L. 104-134 (Apr. 26, 1996)
turn give legal assistance to low-income clients in all 50 states,
P.L. 104-208 (Sept. 30, 1996)
the District of Columbia, the U.S. territories of Guam and the
Virgin Islands, the Commonwealth of Puerto Rico, and
P.L. 105-119 (Nov. 26, 1997)
Micronesia (which includes the Commonwealth of the Northern
P.L. 105-277 (Oct. 21, 1998)
Mariana Islands, the Republic of the Marshall Islands, the
P.L. 106-113 (Nov. 29, 1999)
Federated States of Micronesia, and Palau).
P.L. 106-553 (Dec. 21, 2000)
The federal government has administered a program of legal
P.L. 107-77 (Nov. 28, 2001)
services for the poor since 1966. Originally, the program was
P.L. 108-7 (Feb. 20, 2003)
administered through the Office of Economic Opportunity, a
now-defunct agency that had led the War on Poverty in the mid-
P.L. 108-199 (Jan. 23, 2004)
1960s. In 1971, President Nixon proposed establishment of a
P.L. 108-447 (Dec. 8, 2004)
separate corporation to deliver legal services to insulate the
P.L. 109-108 (Nov. 22, 2005)
program from political pressure.1 Authorizing legislation was
P.L. 110-5 (Feb. 15, 2007)
enacted in 1974 (P.L. 93-355), and the LSC came into existence
the following year. In 1977, the LSC was extended through
P.L. 110-161 (Dec. 26, 2007)
FY1980 (P.L. 95-222). Although Congress has not reauthorized
P.L. 110-329 (Sept. 30, 2008)
the LSC statute since FY1980, it has continued to fund LSC
P.L. 111-8 (Mar. 11, 2009)
every year, and has included legislative language affecting LSC
activities in the annual appropriations laws.
P.L. 111-117 (Dec. 16, 2009)
P.L. 111-322 (Dec. 22, 2010)
P.L. 112-10 (April 15, 2011)
Program Mechanics
P.L. 112-55 (Nov. 18, 2011)
The LSC does not provide legal services directly. Rather, it
P.L. 112-175 (Sept. 28, 2012)
funds local legal services providers, referred to by the LSC as
P.L. 113-2 (Jan. 29, 2013)
“grantees.” Grantees may include nonprofit organizations that
P.L. 113-6 (Mar. 26, 2013)
have as a purpose the provision of legal assistance to eligible
P.L. 113-46 (Oct. 17, 2013)
clients, private attorneys, groups of private attorneys or law
firms, state or local governments, and certain sub-state regional
P.L. 113-76 (Jan. 17, 2014)
planning and coordination agencies.
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, Revised January 2007, p. 19, http://www.clasp.org/admin/
site/publications/files/0158.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/index.php?pid=2998.
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During 2012, the LSC funded 134 local programs in 807 offices employing about 3,945
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
priorities and financial eligibility criteria subject to the LSC limits that stipulate that clients
served may not have household income that exceeds 125% of the federal poverty guidelines, with
limited exceptions for some household incomes of up to 200% of those 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
2 In 2013, 125% of the federal poverty guidelines is $29,438 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 (§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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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; assisted suicide
activities; 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 (however, a few activities are permissible using non-LSC
funding);
• attempt to influence oversight proceedings of the LSC;
• initiate or participate in any class action suit;
• represent certain categories of aliens;
• conduct advocacy training on a public policy issue or encourage political
activities, strikes, or demonstrations;
• 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 in litigation;
• participate in efforts to reform a federal or state welfare system; 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, separation, child custody, support, adoption,
spousal abuse, child abuse or neglect); housing issues (landlord/tenant matters, foreclosures);
welfare or other income maintenance program issues (Supplemental Security Income,
6 For additional information, see CRS Report R40679, Legal Services Corporation: Restrictions on Activities. Note:
The prohibition against claiming or collecting attorneys’ fees was eliminated by Section 533 of P.L. 111-117 (the
Consolidated Appropriations Act, 2010).
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Legal Services Corporation: Background and Funding
Supplemental Nutrition Assistance Program, unemployment compensation benefit claims);
consumer and finance issues (debt collection, bankruptcy); and other issues such as health
coverage and employment matters.
During 2012, legal services attorneys closed 809,830 cases. Family
LSC Cases Closed
issues such as divorce and separation, custody and visitation, domestic
2002: 978,834
abuse, and child support were the substance of 34.3% of cases handled
2003: 935,793
by field offices; housing issues, including eviction cases, comprised
2004: 901,067
26.1% of cases; income maintenance issues represented another 12.1%
2005: 906,338
of cases; and consumer finance comprised 11.2% of cases. Issues related
2006: 895,488
to health coverage (3.4%), employment (2.9%), juveniles (1.6%),
2007: 906,507
individual rights (2.1%), education (0.7%), and other miscellaneous
2008: 889,155
categories (5.3%) comprised 16.3% of cases. Most of the cases handled
2009: 920,447
by LSC are resolved through advice and referral. In 2012, only about
2010: 932,406
8.5% of cases were resolved in court, primarily because they involved
2011: 899,817
family law issues (e.g., protective orders, child support, etc.) in which
2012: 809,830
court action was required by state law.7
Figure 1. LSC Cases Closed in 2012, by Legal Problem
Source: Figure prepared by the Congressional Research Service, based on data from the Legal Services
Corporation.
LSC grantees have closed about 1 million cases annually for the last several years. In addition,
LSC grantees help self-represented (i.e., pro se) litigants obtain the information they need to
pursue their lawsuits, disseminate legal services materials in communities and give discussion
forums, refer clients to appropriate services, and provide mediation assistance.8
7 Legal Services Corporation, Legal Services Corporation 2012 Fact Book, June 2013, http://www.lsc.gov/sites/
lsc.gov/files/LSC/lscgov4/2012Fact%20Book_FINAL.pdf.
8 Legal Services Corporation 2012 Fact Book, June 2013. This report can be found at http://www.lsc.gov/sites/lsc.gov/
files/LSC/lscgov4/2012Fact%20Book_FINAL.pdf.
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According to the LSC Fact Book for 2012,9 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 victims of natural disasters. In 2012, 71%
of LSC clients were females and 29% were males. Approximately 84% of LSC clients were
between the ages of 18 and 59, 14% were age 60 or older, and about 2% were under age 18.
In 2005, LSC staff were directed by the LSC to
document the extent to which the civil legal needs of
Race and Ethnicity
low-income persons were not being met. In
of LSC Clients, 2012
September 2009, the report was updated. The new
report confirms the findings of the earlier report. The
White, not Hispanic
46.4%
LSC found that (1) 50% of potential clients
Black, not Hispanic
27.1%
Hispanic
18.3%
requesting legal assistance were denied assistance
Native American
2.6%
because the LSC did not have the resources to help
Asian or Pacific Islander
2.5%
them; (2) at least 80% of persons who were eligible
Other
3.1%
for LSC services do not get access to either a legal
services attorney or a private attorney (pro bono or paid) when they need such assistance; and (3)
there is one legal services attorney for every 6,415 low-income persons—the comparable number
for the general population is one attorney for every 429 persons, a difference of 15 to 1.10
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 2009 LSC study (cited above),
there is one legal services attorney for every 6,415 poor persons.
Funds for the LSC are included in the annual appropriation for Commerce, Justice, Science, and
Related Agencies (CJS). Table 1 shows LSC appropriations for selected years from FY1976 (the
first full year of LSC operations) to FY2014. Current funding ($365 million)11 is 7% above the
FY2013 LSC funding level ($341 million). LSC funding accounts for less than half (40%) of all
funding for civil legal services for the poor in the United States (discussed in more detail later in
this report).
9 The 2012 Fact Book reflects actual data with no extrapolations or estimates. Most of the data are derived from the
Grant Activity Reports that all LSC-funded programs are required to submit to the LSC in February and March of each
year reflecting activity in the previous calendar year. The remaining data are collected from budget and funding records
of LSC-funded programs.
10 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. See also Legal Services Corporation, “Documenting the Justice Gap in America—
The Current Unmet Civil Legal Needs of Low-Income Americans,” September 2009, available at http://www.lsc.gov/
pdfs/documenting_the_justice_gap_in_america_2009.pdf.
11 P.L. 113-46 (the FY2014 continuing resolution) continued funding for the LSC at its FY2013 level (post-rescission
and post-sequestration) except that it did not provide any new disaster relief funds (nearly $1 million in FY2013). P.L.
113-76 (the FY2014 consolidated appropriations) included $365 million for the LSC for FY2014.
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Table 1. LSC Appropriations History for Selected Years
(in millions of dollars)
FY $ FY $ FY $ FY $ FY $
1976 92 1991 328 1997 283 2003 337 2009 390
1980 300 1992 350 1998 283 2004 335 2010 420
1984 275 1993 357 1999 300 2005 331 2011 404
1988 306 1994 400 2000 304 2006 327 2012 348
1989 309 1995 400 2001 329 2007 349 2013 341a
1990 317 1996 278 2002 329 2008 351 2014 365b
Source: Table prepared by the Congressional Research Service.
a. The LSC appropriation for FY2013 was initially $365 million. P.L. 113-6 also required a 1.877% rescission
and an additional 0.2% rescission. Moreover, P.L. 112-25 (the Budget Control Act of 2011) triggered a
sequestration of funds that took effect on March 1, 2013. The FY2013 figure after both rescissions was
$358.4 million (includes the $1 million in Hurricane Sandy Disaster Relief funds (P.L. 113-2)). The FY2013
figure after both rescissions and sequestration (the $1 million in Sandy relief funds for the LSC was reduced
to $950,000 pursuant to sequestration) was $341 million.
b. P.L. 113-46 (the Continuing Appropriations Act, 2014) continued LSC’s FY2013 appropriation level (post-
rescission and post-sequestration) through January 15, 2014, or whenever the FY2014 CJS appropriations
bill was signed into law, whichever came first. P.L. 113-76 (the Consolidated Appropriations Act, 2014)
included $365 million for the LSC for FY2014.
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
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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 a 2001 Special Report, LSC indicated that in carrying out the LSC
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.12 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.
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
12 Legal Services Corporation, A Special Report to Congress, State Planning & Reconfiguration, September 2001, pp.
2-3, 10.
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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 required 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 was $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 was below the amounts that were passed by the House and the
Senate. The FY2008 appropriation for the LSC included $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 were authorized to provide limited representation
to temporary forestry workers.
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Legal Services Corporation: Background and Funding
FY2009
For FY2009, the Bush Administration requested $311.0 million for the LSC.13 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
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.14
P.L. 110-315, the College Opportunity and Affordability Act of 2008 (enacted August 14, 2008),
included a provision that authorized $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.15
Although the loan repayment program was authorized, funding for the program has not 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.
13 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.
14 See Sections 2305 and 2401 of P.L. 110-289.
15 See Section 431 of P.L. 110-315.
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Legal Services Corporation: Background and Funding
P.L. 111-8, the Omnibus Appropriations Act, 2009 (enacted March 11, 2009), included $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 included $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.
FY2010
For FY2010, the Obama Administration requested $435 million for the LSC.16 This amount was
$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
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 (S.Rept.
111-34). The Senate version of the bill (H.R. 2847) provided about 3% more than the FY2009
LCS appropriation and 8% less than the Administration’s FY2010 request for the LSC. The
Senate passed H.R. 2847 on November 5, 2009. The Senate-passed version of the bill included
$400 million in funding for the LSC and continued existing limitations on the use of federal funds
but eliminated the restrictions on the use of nonfederal funds except in litigation involving
abortion and cases involving prisoners.17 The conference agreement on H.R. 3288 (consolidated
appropriations for 2010—H.Rept. 111-366), which included $420 million for the LSC for
FY2010, was passed by the House on December 10, 2009, and by the Senate on December 13,
2009.
16 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.
17 S.Rept. 111-34 (page 143) deletes Section 504(d) of P.L. 104-134 (pertaining to the use of nonfederal funds for
activities prohibited by the LSC), but also stipulates that no funds (federal or nonfederal) can be used for activities
specified in Section 504(a)(14) or Section 504(a)(15) of P.L. 104-134 (respectively, these two sections pertain to
abortion litigation and litigation involving persons incarcerated in a federal, state, or local prison).
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Legal Services Corporation: Background and Funding
P.L. 111-117, the Consolidated Appropriations Act, 2010 (enacted December 16, 2009), included
$420.0 million for the LSC for FY2010. The FY2010 appropriation for the LSC included $394.4
million for basic field programs and required independent audits, $17.0 million for management
and administration, $3.4 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. P.L. 111-117
continued 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.
FY2011
For FY2011, the Obama Administration requested $435 million for the LSC.18 This amount was
$15 million (3.6%) above the FY2010 appropriation of $420 million for the LSC. The
Administration’s budget request included $407 million for basic field programs and required
independent audits, $20 million for management and grants oversight, $3 million for client self-
help and information technology, $4 million for the Office of the Inspector General, and $1
million for loan repayment assistance. The Obama Administration also proposed that LSC
restrictions on class action suits and attorneys’ fees be eliminated. (The restriction on attorneys’
fees was eliminated pursuant to P.L. 111-117.)
On July 22, 2010, the Senate Appropriations Committee approved $430 million for the LSC for
FY2011 (S.Rept. 111-229; S. 3636), which represented a 2.4% increase over FY2010 funding and
a 1.1% decrease below the Administration’s budget request. The Senate Appropriations
Committee recommendation for the LSC provided $401.7 million for basic field programs, to be
used for competitively awarded grants and contracts; $20.0 million for management and
administration; $3.0 million for client self-help and information technology; $4.3 million for the
Office of the Inspector General; and $1.0 million for loan repayment assistance.
The Senate Appropriations Committee report stipulated that implementation of the recent
recommendations of the Government Accountability Office (GAO) and the LSC Inspector
General for the LSC must be a priority of the LSC. In addition, the Senate Appropriations
Committee bill continued existing limitations on the use of federal funds, but lifted restrictions on
the use of nonfederal funds except in litigation involving abortion or litigation on behalf of
prisoners.
Although the House Appropriations Subcommittee approved a $440 million FY2011 budget for
the LSC on June 29, 2010, the full House Appropriations Committee did not act on the proposal.
Neither the full Senate or House passed a regular appropriations bill that included funding for the
LSC for FY2011 during the 111th Congress. Instead, several continuing resolutions were passed.19
18 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 FY2011, the LSC requested an
appropriation of $484.9 million, an 11.5% increase over the President’s FY2011 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 the economic
downturn, along with recent LSC findings that there is significant unmet need among America’s poorest populations
with regard to civil legal assistance.
19 There were seven temporary appropriations for the LSC for FY2011: (1) P.L. 111-242 (H.R. 3081) continued
appropriations for the LSC at the FY2010 enacted level (i.e., $420 million ) until December 3, 2010; (2) P.L. 111-290
(H.J.Res. 101) continued appropriations for the LSC at the FY2010 enacted level until December 18, 2010; (3) P.L.
111-317 (H.J.Res. 105) continued appropriations for the LSC at the FY2010 enacted level until December 21, 2010; (4)
(continued...)
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Legal Services Corporation: Background and Funding
On April 14, 2011, H.R. 1473, the Department of Defense and Full-Year Continuing
Appropriations Act, 2011, was passed by the House and Senate. It was signed into law (P.L. 112-
10) by President Obama on April 15, 2011. P.L. 112-10 included funding of $405 million for the
LSC for FY2011. However, the act also included a 0.2% across-the-board rescission. So, the
funding for the LSC for FY2011 was about $404.2 million.
FY2012
For FY2012, the Obama Administration requested $450.0 million for the LSC.20 This amount was
$45.8 million (11.3%) above the FY2011 appropriation of $404.2 million for the LSC. The
Administration’s FY2012 budget request included $420.2 million for basic field programs and
required independent audits, $19.5 million for management and grants oversight, $5.0 million for
client self-help and information technology, $4.4 million for the Office of the Inspector General,
and $1.0 million for loan repayment assistance. The Obama Administration also proposed that
LSC restrictions on class action suits and attorneys’ fees be eliminated.21
On July 20, 2011, the House Committee on Appropriations recommended $300 million for the
LSC for FY2012 (H.Rept. 112-169; H.R. 2596). This amount was 33.3% less than the
Administration’s FY2012 budget request and 25.8% less than the FY2011-enacted amount. The
committee also encouraged the LSC Inspector General to conduct annual audits of LSC grantees
to make sure that they are not using LSC funds in violation of the prohibition against engaging in
political activities or any of the other restrictions on LSC activities. The committee recommended
that funds be withdrawn from any LSC grantee found to be engaging in political activity.
On September 15, 2011, the Senate Committee on Appropriations recommended $396.1 million
for the LSC for FY2012 (S.Rept. 112-78; S. 1572). This amount was 32.2% more than the
amount recommended by the House Committee on Appropriations, 12.0% less than the
Administration’s FY2012 budget request, and 2.0% less than the FY2011-enacted amount. The
Senate Committee on Appropriations’ recommendation for the LSC for FY2012 included $370.5
million for basic field programs and required independent audits, $17.0 million for management
and grants oversight, $3.4 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. The
committee also (1) directed the LSC to continue its collaboration with the Department of Justice
to conduct a national study of the cost-effectiveness of a legal services program patterned after
existing state models; (2) encouraged the LSC to have its grantees improve and/or increase
(...continued)
P.L. 111-322 (H.R. 3082) continued appropriations for the LSC at the FY2010 enacted level until March 4, 2011; (5)
P.L. 112-4 (H.J.Res. 44) continued appropriations for the LSC at the FY2010 enacted level until March 18, 2011; (6)
P.L. 112-6 (H.J.Res. 48) continued appropriations for the LSC at the FY2010 enacted level until April 8, 2011; (7) P.L.
112-8 continued appropriations for the LSC at the FY2010 enacted level (i.e., $420 million ) until April 15, 2011.
20 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 FY2012, the LSC requested an
appropriation of $516.550 million, a 14.8% increase over the President’s FY2012 budget request of $450 million. The
reasons cited for the significant increase included legal problems of existing and new clients stemming from the
economic downturn and slow recovery, continued crises in the mortgage and housing industries, and the ongoing
impact of natural disasters, along with recent LSC findings that there is significant unmet need among America’s
poorest populations with regard to civil legal assistance.
21 The restriction on attorneys’ fees was eliminated pursuant to P.L. 111-117 (§533). For further information, see CRS
Report R40679, Legal Services Corporation: Restrictions on Activities, by Carmen Solomon-Fears.
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Legal Services Corporation: Background and Funding
private attorney pro bono participation; and (3) directed LSC to conduct a study of the
implementation and costs of a legal aid fellowship program that would provide incentives for
retirees and/or recent law school graduates to commit to working in legal services programs for a
specified period of time. The committee also recommended that all the restrictions on the use of
private funds for the LSC, except those associated with abortion-related cases and representation
of prisoner cases, be eliminated.22 The restrictions on the use of public funds for the LSC
remained in effect.
On November 1, 2011, the Senate passed a bill (H.R. 2112) that included funding of $348 million
for the LSC for FY2012. On November 17, 2011, both the House and the Senate passed the
conference report on H.R. 2112 (H.Rept. 112-284). Among other things, it funded the LSC at
$348 million for FY2012. The conference report included the existing restrictions on LSC
activities. H.R. 2112 (the Consolidated and Further Continuing Appropriations Act, 2012) was
signed into law (P.L. 112-55) by President Obama on November 18, 2011.
The FY2012 appropriation for the LSC, $348 million, was 13.9% less than the FY2011 LSC
appropriation, 22.7% less than the Administration’s budget request, 16% more than the House
committee’s recommendation, and 12.1% less than the amount passed by the Senate. The FY2012
appropriation for the LSC included $322.4 million for basic field programs and required
independent audits, $17.0 million for management and grants oversight, $3.4 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 also included the existing restrictions on LSC
activities.
FY2013
For FY2013, the Obama Administration requested $402.0 million for the LSC.23 This amount was
$54.0 million (15.5%) above the FY2012 appropriation of $348.0 million for the LSC. The
Administration’s FY2013 budget request included $376.8 million for basic field programs and
required independent audits, $17.0 million for management and grants oversight, $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. The Obama Administration also proposed that
LSC restrictions on class action suits and attorneys’ fees be eliminated.24
On April 19, 2012, the Senate Committee on Appropriations recommended $402 million for the
LSC for FY2013 (S.Rept. 112-158; S. 2323). This amount was the same as the Administration’s
22 According to the Senate committee report (S.Rept. 112-78, pp. 123-124), the recommendation that would in effect
allow LSC grantees to use private sources of funding for LSC activities (with the exceptions mentioned above) that
cannot be funded with public sources of funds is intended to “level the playing field between legal aid attorneys and
their counterparts in the private sector and open potentially crucial sources of additional revenue to legal aid providers
in a year in which State and private funding sources are decreasing.”
23 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 FY2013, the LSC requested an
appropriation of $470.0 million, a 16.9% increase over the President’s FY2013 budget request of $402 million. The
reasons cited for the significant increase included legal problems of existing and new clients stemming from the slow
recovery, continued crises in the mortgage and housing industries, the decline in non-LSC resources available for legal
services programs, and the ongoing impact of natural disasters, along with recent LSC findings that there is significant
unmet need among America’s poorest populations with regard to civil legal assistance.
24 The restriction on attorneys’ fees was eliminated pursuant to P.L. 111-117 (§533).
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Legal Services Corporation: Background and Funding
FY2013 budget request and 15.5% more than the FY2012-enacted amount. S. 2323 deleted
restrictions concerning the use of non-federal funding for LSC activities except for activities
regarding class action law suits; abortion litigation; and litigation on behalf of federal, state, or
local prisoners.
On April 26, 2012, the House Committee on Appropriations recommended $328 million for the
LSC for FY2013. This amount was 18.4% less than the amount recommended by the Senate
Committee on Appropriations and the Administration’s FY2013 budget request, and 5.7% less
than the FY2012-enacted amount. The committee also encouraged the LSC Inspector General to
conduct annual audits of LSC grantees to make sure that they are not using LSC funds in
violation of the prohibition against engaging in political activities or any of the other restrictions
on LSC activities. The committee recommended that funds be withdrawn from any LSC grantee
found to be engaging in political activity. In addition, the committee included a technical change
to the allocation formula for basic field grants. Currently the allocation for LSC grantees in each
geographic area is based on poverty statistics from the ‘‘most recent decennial census.’’ The
Census Bureau has since stopped collecting poverty data in the decennial census and instead
collects those data in the American Community Survey (ACS). The committee recommended that
the formula be altered to reflect this shift. Since ACS data are released more frequently, the
committee recommendation allows reallocation of LSC funding every three years. On May 10,
2012, the House passed the FY2013 CJS Appropriations bill (H.R. 5326), which included $328
million for the LSC as well as the revised Census Bureau language. It also included the existing
restrictions on LSC activities. One House amendment that would have eliminated all funding for
the LCS and another House amendment that would have cut the funding for the LSC to $200
million for FY2013 were rejected.
On September 28, 2012, President Obama signed into law the Continuing Appropriations
Resolution, 2013 (P.L. 112-175). The act continued appropriations for the agencies and bureaus
funded under the annual CJS bill at 0.612% above the FY2012-enacted levels until March 27,
2013, or until the FY2013 CJS bill was passed by Congress and signed into law by the President.
LSC funds were available to the extent and in the manner provided in the FY2012 LSC
appropriation.
On December 7, 2012, in its request for disaster assistance funding, the Obama Administration
requested $1 million for LSC-funded programs in the areas affected by Hurricane Sandy to
provide storm-related services to the low-income client population. On December 12, 2012, the
Senate Appropriations Committee introduced a supplemental disaster aid bill that also included
$1 million in disaster assistance for LSC-funded programs in the areas affected by Hurricane
Sandy. On January 29, 2013, President Obama signed into law the Hurricane Sandy Disaster
Relief Bill (H.R. 152, P.L. 113-2). It included $1 million for the LSC to provide assistance to low-
income people in areas significantly affected by the super storm.
On March 26, 2013, President Obama signed into law the Consolidated and Further Continuing
Appropriations Act, 2013 (P.L. 113-6). It included a total of $365 million for the LSC. Note that
this amount does not include the 1.877% cut in the Commerce, Justice, Science, and Related
Agencies Appropriations (which includes the LSC) or the 0.2% across-the-board rescission
specified in Section 3004 of the law, nor does it account for the sequestration of funds that took
effect on March 1, 2013, as triggered by the Budget Control Act of 2011 (P.L. 112-25). P.L. 113-6
directed LSC to re-examine its headquarters structure and identify areas of duplication for
consolidation or elimination in an effort to provide a more efficient and cost-saving structure, and
send more funding to those in the field in need of LSC services. LSC is required to report these
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Legal Services Corporation: Background and Funding
findings to the Committees on Appropriations within 90 days of enactment. In addition, a
technical change to the allocation formula for basic field grants was included to reflect the shift in
how the Census Bureau collects poverty data. The technical change directed LSC to reallocate
funding every three years based on poverty data from the U.S. Bureau of the Census. P.L. 113-6
also provided a two-year phase-in of the changes.
LSC’s post-rescission, pre-sequestration operating level for FY2013 was $358.4 million, which
included the $1 million in Hurricane Sandy Disaster Relief funds (which also was subject to
sequestration) for the LSC to provide assistance to low-income people in areas significantly
affected by the super storm. LSC’s post-rescission, post-sequestration operating level for FY2013
was $341 million.
FY2014
For FY2014, the Obama Administration requested $430.0 million for the LSC.25 The
Administration’s FY2014 budget request included $400.3 million for basic field programs and
required independent audits, $19.5 million for management and grants oversight, $3.5 million for
client self-help and information technology, $4.2 million for the Office of the Inspector General,
$1.5 million for a Pro Bono Innovation Fund, and $1.0 million for loan repayment assistance. The
Obama Administration also proposed that LSC restrictions on class action suits and attorneys’
fees be eliminated.26
On July 17, 2013, the House Committee on Appropriations recommended $300 million for the
LSC for FY2014. This recommendation included $271.9 million for basic field programs and
required independent audits, $17.0 million for management and grants oversight, $3.4 million for
client self-help and information technology, $4.2 million for the Office of the Inspector General,
$2.5 million for a Pro Bono Innovation Fund, and $1.0 million for loan repayment assistance.
On July 18, 2013, the Senate Committee on Appropriations approved $430 million for the LSC
for FY2014. This amount is identical to the President’s FY2014 budget request and is $90 million
more than LSC’s operating level for FY2013 (i.e., $341 million).27
Pursuant to P.L. 113-46 (the Continuing Appropriations Act, 2014), LSC’s funding level for
FY2014 was $341 million. P.L. 113-46 continued LSC’s FY2013 appropriation level (post-
rescission and post-sequestration) through January 15, 2014, or whenever the FY2014 CJS
appropriations bill was signed into law, whichever came first. P.L. 113-76 (the Consolidated
Appropriations Act, 2014) included $365 million for the LSC for FY2014.
25 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 FY2014, the LSC requested an
appropriation of $486.0 million, a 13% increase over the President’s FY2014 budget request of $430 million for the
LSC. The reasons cited for the increase include the decline in some non-LSC funding sources, and LSC’s calculation of
the resources necessary to provide the same level of service that LSC grantees provided in 2007, the year before the
recession began, along with LSC findings that there is significant unmet need among America’s poorest populations
with regard to civil legal assistance. LSC’s budget request also includes an additional $5 million for a new grant
program to encourage innovations in pro bono legal services.
26 The restriction on attorneys’ fees was eliminated pursuant to P.L. 111-117 (§533).
27 The FY2013 funding amount includes the $1 million in Hurricane Sandy Disaster Relief funds (which was reduced
to $950,000 pursuant to sequestration).
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It is important to note that since FY1996, all of the LSC appropriations laws have included
language stipulating the retention of provisions restricting the activities of LSC grantees enacted
in previous LSC appropriations laws.28 (See the earlier section titled “Restrictions on Activities.”)
Table 2 shows LSC appropriations for FY2004-FY2014, by component of funding.
Table 2. LSC: Funding for Program Components, FY2004-FY2014
(in millions of dollars)
Pro
Management
Client Self-
Office of
Offset for
Student
Bono
Basic
and
Help and
the
Census-
Loan
Inno-
Field
Administra-
Information
Inspector
Based
Repayment
vation
Programs
tion
Technology
General
Reallocations
Program
Fund
Total
FY2004
316.4 13.0
1.3 2.6
1.8
0 0
335.3
FY2005
312.4 12.8
1.3 2.5
1.8
0 0
330.8
FY2006
308.4 12.7
1.2 2.5
1.8
0 0
326.6
FY2007
330.8 12.7
2.1 3.0
0
0 0
348.6
FY2008
332.5 12.5
2.1 3.0
0
0.5 0
350.5
FY2009
365.8 16.0
3.0 4.2
0
1.0 0
390.0
FY2010
394.4 17.0
3.4 4.2
0
1.0 0
420.0
FY2011
378.6 17.0
3.4 4.2
0
1.0 0
404.2
FY2012
322.4 17.0
3.4 4.2
0
1.0 0
348.0
FY2013
316.1 15.8
3.2 3.9
0
0.9 0
341.0
FY2014
335.7 18.0
3.5 4.4
0
1.0 2.5
365.0
Source: Table prepared by the Congressional Research Service.
Notes: These data reflect appropriations after all rescissions; numbers may not add to total due to rounding.
The FY2013 total includes the $1 million in Hurricane Sandy Disaster Relief funds (reduced to $950,000 pursuant
to sequestration). With respect to FY2014, P.L. 113-46 (the Continuing Appropriations Act, 2014) continued
LSC’s FY2013 appropriation level (post-rescission and post-sequestration) through January 15, 2014, or
whenever the FY2014 CJS appropriations bill was signed into law, whichever came first. P.L. 113-76 (the
Consolidated Appropriations Act, 2014) included $365 million for the LSC for FY2014.
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. Census Bureau data29 on the number of “poor” persons in each
28 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.
29 Until recently, the distribution of LSC funds was based on census data that used the most recent decennial census.
However, the distribution of LSC funding for 2010, 2011, and 2012 has continued to be based on census data from the
year 2000.
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Legal Services Corporation: Background and Funding
service area.30 Grantees within each state or jurisdiction then compete among themselves for
funding.
In the 2010 decennial census, the Census Bureau did not use the “long form” and did not collect
data on personal income. In lieu of the “long form,” the Census Bureau developed the American
Community Survey (ACS), an ongoing survey that provides data every year on income and
benefits, family and relationships, and other kinds of data, which provides a more timely picture
of poverty and other demographic information. Due to these changes in the data sets obtained by
the 2010 decennial census, LSC funding can no longer be distributed according to the provisions
of the current appropriations act that funds the LSC. On September 19, 2011, the LSC Board
recommended that (1) the determination of the number of individuals in poverty in each
geographic area would be made by the U.S. Census Bureau, without any reference to the
decennial census as the basis for that determination; (2) LSC funding would be reallocated among
geographic areas every three years based on updated poverty population determinations by the
Census Bureau; and (3) the first reallocation would be phased in over two years, in FY2013 and
FY2014. P.L. 113-6 included a technical change to the allocation formula for basic field grants to
reflect the shift in how the Census Bureau collects poverty data. The technical change directs
LSC to reallocate funding every three years based on poverty data from the U.S. Bureau of the
Census. P.L. 113-6 also provided a two-year phase-in of the changes.
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;31 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.32
As shown in Table 3, in 2012 LSC funding accounted for about 40% of the $882.9 million spent
in the United States for civil legal services for the poor.33
Table 3. Funding for LSC and Non-LSC Programs, by Jurisdiction, 2012
Number of
LSC Funding
LSC
Non-LSC
as
State LSC
Funding
Programs
Funding
Total Funding
% of Total
Alabama
7,334,551
1 1,438,361 8,772,912
83.6%
Alaska
1,255,719
1 2,099,897 3,355,616
37.4%
30 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.
31 These funds represent interest earned on sums deposited by clients with attorneys for short periods of time.
32 In 2012, approximately 33,000 private attorneys accepted referrals to help LSC clients.
33 Legal Services Corporation, Legal Services Corporation 2012 Fact Book, June 2013, http://www.lsc.gov/sites/
lsc.gov/files/LSC/lscgov4/2012Fact%20Book_FINAL.pdf.
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Legal Services Corporation: Background and Funding
Number of
LSC Funding
LSC
Non-LSC
as
State LSC
Funding
Programs
Funding Total
Funding % of Total
Arizona 10,163,827
3
4,711,250
14,875,077
68.3%
Arkansas
3,778,472
2 3,846,881 7,625,353
49.6%
California 46,132,716
11
56,386,024
102,518,740
45.0%
Colorado 3,479,399
1
8,539,690
12,019,089
28.9%
Connecticut 2,683,946 1
299,660
2,983,606
90.0%
Delaware 609,456
1
550,662
1,160,118
52.5%
District of Columbia
987,533
1
795,864
1,783,397
55.4%
Florida
19,297,053
7 22,215,607 41,512,660
46.5%
Georgia
9,201,851
2 11,903,864 21,105,715
43.6%
Hawai 1,640,993
1
9,634,562
11,275,555
14.6%
Idaho
1,362,846
1 1,171,702 2,534,548
53.8%
Illinois
11,494,632
3 25,948,631 37,443,263
30.7%
Indiana
5,673,861
1 2,924,448 8,598,309
66.0%
Iowa
2,282,152
1 4,869,343 7,151,495
31.9%
Kansas
2,247,751
1 3,684,940 5,932,691
37.9%
Kentucky
5,854,278
4 11,200,294 17,054,572
34.3%
Louisiana 7,962,813
4
5,504,927
13,467,740
59.1%
Maine
1,494,710
1 5,647,477 7,142,187
20.9%
Maryland
3,822,055
1 20,430,272 24,252,327
15.8%
Massachusetts 5,445,502 4
5,423,906
10,869,408
50.1%
Michigan
9,408,859
5 13,495,928 22,904,787
41.1%
Minnesota
3,694,606
5 11,361,482 15,056,088
24.5%
Mississippi
5,255,885
3 1,631,438 6,887,323
76.3%
Missouri
5,748,683
4 13,150,278 18,898,961
30.4%
Montana
1,352,483
1 1,716,811 3,069,294
44.1%
Nebraska
1,463,821
1 3,775,859 5,239,680
27.9%
Nevada 2,048,764
1
999,419
3,048,183
67.2%
New
Hampshire
675,222
1 196,158 871,380 77.5%
New
Jersey
6,370,641
6 22,166,874 28,537,515
22.3%
New
Mexico
3,767,323
1 2,231,101 5,998,424
62.8%
New
York
24,569,908
7 67,132,296 91,702,204
26.8%
North
Carolina
10,716,348
1 11,451,465 22,167,813
48.3%
North
Dakota
1,001,895
1 1,057,885 2,059,780
48.6%
Ohio
10,870,442
5 33,822,290 44,692,732
24.3%
Oklahoma 5,602,459
1
6,606,013
12,208,472
45.9%
Oregon
3,660,432
1 3,312,430 6,972,862
52.5%
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Legal Services Corporation: Background and Funding
Number of
LSC Funding
LSC
Non-LSC
as
State LSC
Funding
Programs
Funding Total
Funding % of Total
Pennsylvania
12,286,201
8 23,205,447 35,491,648
34.6%
Rhode
Island
1,052,136
1 2,345,965 3,398,101
31.0%
South Carolina
5,324,929
1
5,066,360
10,391,289
51.2%
South Dakota
1,735,675
2
695,001
2,430,676
71.4%
Tennessee
7,214,162
4 13,399,081 20,613,243
35.0%
Texas
31,075,144
3 31,491,256 62,566,400
49.7%
Utah
1,918,498
1 2,036,447 3,954,945
48.5%
Vermont
604,192
1 122,261 726,453 83.2%
Virginia
5,958,604
6 12,027,283 17,985,887
33.1%
Washington
7,651,726
1 16,545,379 24,197,105
31.6%
West
Virginia
2,927,950
1 7,034,592 9,962,542
29.4%
Wisconsin 5,298,331
2
6,033,355
11,331,686
46.8%
Wyoming 762,117
1
325,550
1,087,667
70.1%
Guam 340,072
1
882,876
1,222,948
27.8%
Micronesia 1,553,623
1
556,697
2,110,320
73.6%
Puerto Rico
16,229,722
2
3,863,295
20,093,017
80.8%
Virgin
Islands
304,344
1 1,255,329 1,559,673
19.5%
Total (states and
334,223,552
131 523,663,966 857,887,518
39.0%
DC)
Total (states, DC,
352,651,313
134 530,222,163 882,873,476
39.9%
and territories)
Source: Table prepared by the Congressional Research Service, using data from the Legal Services Corporation,
Legal Services Corporation 2012 Fact Book, June 2013. This report can be found at http://www.lsc.gov/sites/lsc.gov/
files/LSC/lscgov4/2012Fact%20Book_FINAL.pdf
Author Contact Information
Carmen Solomon-Fears
Specialist in Social Policy
csolomonfears@crs.loc.gov, 7-7306
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