To our community,
Today, the North Carolina General Assembly published a state budget that redirects almost all Interest on Lawyers’ Trust Accounts (IOLTA) funding away from civil legal aid.
This decision eliminates a long-standing, non-taxpayer source of funding that has supported civil legal services across North Carolina for more than four decades.
Civil legal aid helps people address urgent, everyday legal problems such as preventing unlawful eviction, escaping domestic violence, protecting veterans’ benefits and helping seniors age with dignity. The need for these services is significant. In North Carolina, 71% of low-income households experience at least one civil legal issue each year, and in three out of four civil cases, at least one party does not have legal representation.
IOLTA has been a critical part of meeting that need. In 2025 alone, North Carolina’s IOLTA program distributed approximately $12 million in grants, supporting civil legal aid and related services that reached tens of thousands of people across all 100 counties.
We know this news will raise questions. It is important to share that we planned for this possibility. Funding has been frozen for 12 months, and we made necessary adjustments in 2025. Our Board of Directors approved a balanced 2026 budget that assumed no IOLTA funding. While this outcome is deeply disappointing, it does not impact our current operations or staffing, and we are continuing our work without disruption.
We had hoped the General Assembly would restore this critical investment in civil legal aid. While that did not happen, our commitment to North Carolinians remains unchanged.
This is a difficult moment for the thousands of North Carolina families who rely on civil legal help each year in an already under-resourced system. Legal Aid of North Carolina alone served more than 25,000 clients and impacted over 62,000 household members in 2025.
When the IOLTA freeze began last year, Legal Aid of North Carolina made difficult but necessary decisions, including reducing our workforce and closing rural offices to preserve as many services as possible for the communities that depend on us.
We will continue moving forward with determination, supported by our federal, state, county, municipal, foundation, corporate, and individual donors, along with the extraordinary generosity of our pro bono volunteers. Because of this support, families will continue to feel safe, seniors will protect their homes and income, veterans will access the benefits they earned, and children will have better opportunities to thrive.
Thank you for standing beside us as we navigate this time and continue our mission to expand access to justice for all North Carolinians. We are deeply grateful for continued financial support, which remains essential to sustaining and expanding access to justice across North Carolina.
With gratitude,
Legal Aid of North Carolina