1. United States
2. N.C.
3. Letter

As your constituent, I am writing to urge you to oppose provisions in the 2026 state budget bill that would dramatically restrict North Carolina's Interest on Lawyers' Trust Accounts (NC IOLTA) program and defund civil legal aid for tens of thousands of low-income citizens. For over 40 years, NC IOLTA has provided essential legal services without using taxpayer money. All attorneys are required by the State Bar to deposit client funds too small or brief to earn interest into a pooled account. The collective interest is then distributed to eligible legal aid organizations serving vulnerable populations—domestic violence survivors seeking protective orders, people facing wrongful evictions, homeless individuals, and veterans. The proposed budget fundamentally undermines this program. It redirects $15 million in newly collected IOLTA funds toward indigent criminal defense—a service the state is already constitutionally required to fund through taxes. Additionally, it caps annual disbursements and restricts the remaining $2 million to pre-July 2025 funds, creating a finite, non-replenishing source that will eventually be exhausted. Most troubling are the new eligibility restrictions. Organizations would be barred from receiving grants if they engage in advocacy work or encourage constituents to contact elected officials about legislation. The budget also excludes groups assisting with matters governed by federal immigration law—effectively eliminating support for human trafficking survivors and unaccompanied children. These politically motivated restrictions would categorically disqualify the state's largest civil legal aid providers. North Carolina would become the only state in the nation using IOLTA to fund constitutionally mandated criminal defense rather than civil legal aid. This represents an unprecedented departure from how every other state manages its IOLTA program. Legal aid organizations like the Charlotte Center for Legal Advocacy work with women and children escaping abuse, people facing homelessness, and other citizens with basic safety and shelter needs. These cases cannot wait for a future legislative session or alternative funding that may never materialize. I respectfully urge you to reject these provisions and preserve NC IOLTA as the dedicated funding source for civil legal aid it was designed to be. Thank you for your consideration.