As COVID-19 Layoffs Increase Demand for Legal Aid, Providers Expect Precipitous Funding Drop

Civil legal-aid providers across the country are expecting a flood of Americans to begin qualifying for legal aid because of mass layoffs arising from COVID-19 government shutdowns. Some will face serious legal issues, yet as the demand for legal aid increases, the bottom just dropped out of the legal-aid budget. When the federal government cut interest rates to spur the economy, that also zeroed out the interest rate for Interest on Lawyers’ Trust Accounts, which is the traditional funding source for legal-aid providers.

News Story (Texas)

Angela Morris
Texas Lawbook, Law.com
March 25, 2020
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Tags: Funding: Federal, Funding: IOLTA

Organizations mentioned/involved: Texas Legal Services Center (TLSC), TexasLawHelp.org, Legal Services Corporation (LSC), Texas Access to Justice Foundation (TAJF)


DETAILS

Civil legal-aid providers across the country are expecting a flood of Americans to begin qualifying for legal aid because of mass layoffs arising from COVID-19 government shutdowns. Some will face serious legal issues, yet as the demand for legal aid increases, the bottom just dropped out of the legal-aid budget. When the federal government cut interest rates to spur the economy, that also zeroed out the interest rate for Interest on Lawyers’ Trust Accounts, which is the traditional funding source for legal-aid providers.