North Carolina House lawmakers held a hearing Wednesday to question how millions of dollars in legal aid grants are distributed through a state program.
The House Select Committee on Oversight and Reform questioned the Interest on Lawyers’ Trust Accounts. Under that program, the interest from certain accounts held in escrow is distributed to nonprofits that provide legal services for people who can't afford them. The General Assembly froze the program's grantmaking in July while lawmakers investigated how funds are given.
Rep. Allison Dahle warned that the freeze could jeopardize hundreds of jobs at Legal Aid of North Carolina, the state's largest nonprofit law firm.
“Legal Aid helps veterans. Legal Aid helps children, women, all part of our society,” Duhle said.
Lawmakers also questioned grants to groups like Carolina Migrant Network and the Amica Center for Immigrant Rights, saying their political advocacy strays from providing solely legal services. Peter Bolac with the N.C. Bar Association said the group is proposing new restrictions.
“We have come to the table when addressing this issue during the last five or six months with additional potential proposed restrictions that would prohibit funding to entities that engage in political grassroots lobbying,” Bolac said.
IOLTA planned to distribute nearly $12 million this year to 35 nonprofits. Lawmakers plan to hold another hearing to question the program again before deciding its future, but didn't set a date on Wednesday.
