NC Legal Aid serves the poorest people in North Carolina, providing them with legal representation in civil court when they couldn't otherwise afford it.
Jonathan Perry was the managing attorney for Legal Aid’s Boone office, until it recently closed. He says their clients come to them in dire need.
“It could be somebody that's landlord is evicting them, and they need representation in court. It could be a woman in Watauga county that is the victim of abuse or a sexual assault that is trying to get a restraining order against somebody," Perry said.
But Legal Aid will not be able to help everyone who needs it in 2026 — in fact an estimated 8,000 fewer clients will get services, thanks to a one-paragraph provision in this summer’s Public Safety Act. It’s meant some really tough decisions for Perry.
“I have to prioritize. Obviously, somebody going through an active [domestic violence case]. That's a priority right now with the staff that I have, versus, like, some of the expungement clinics that we typically do, or the will clinics that we do for free," he said.
The one-year funding freeze came because legislators were concerned about the organization that helps fund Legal Aid: IOLTA — or Interest on Lawyers Trust Accounts.
Here’s how it works: lawyers often need to hold onto a client’s money while they work on a case. That money can generate interest. A lot of interest. The organization gave out $12 million in grants to organizations in 2025 — and the organizations that got that money were under close scrutiny in a House oversight committee meeting in October.
Republican Chairman Harry Warren introduced the meeting: "IOLTA does good work, and we have seen evidence of that, but also it's also gone somewhat rogue, awarding grants to leftist groups with leftist ideologies.”
This is a concern, he said, because IOLTA is barred from putting money into advocacy organizations. he noted that the membership of IOLTA's board is mostly Democrats, and said some of the grantees were defending migrants, or had pro-diversity or social justice messaging on their websites.
Others at the hearing were more worried about the knock-on effects of the funding freeze.
Representative Mike Schietzelt, a Republican from Wake County, said, “It is deeply, deeply unfortunate that we are in this situation right now. So I share the concerns voiced by so many of my colleagues that access to justice is being impeded here. That there are great organizations like Legal Aid and Pisgah Legal Services that are doing critically important work in areas that desperately need it, particularly the communities that are impacted by Helene."
According to Ashley Campbell, the director of NC Legal Aid, half of the money from the grants last year went to her organization — about $6 million. That’s 15% of their budget.
“So we have had to announce we are closing nine offices, primarily in rural communities, and we have laid off or vacated approximately 50 staff positions," she said. "And while that is devastating, the most significant impact to our state are the thousands of North Carolinians who are not going to be able to receive the civil legal help that they need.”
Eight thousand fewer people receiving services: That number is hard to wrap your mind around, so Campbell shared the story of just one client, a victim of Hurricane Helene.
“His house slid off the side of the mountain. His wife died, and he and his son survived. We helped them do a FEMA appeal and get their FEMA benefits. We helped them file for the wife's life insurance. He was having a difficult time doing that himself, so we helped him do that. And he still had a mortgage on his house, so he's still having to pay the bank for a house that does not exist," Campbell said.
NC Legal Aid negotiated with the bank to avoid a foreclosure going on his record. Campbell says the staff at Legal Aid were terrified the state would be hit by another storm, because they simply don't have the resources they need to help.
While the pause ends at the end of June, Campbell worries that the freeze will mean no funding from IOLTA whatsoever for the entirety of 2026.
"Even if they allow them to begin making grants again, they have to go through a grant-making process," Campbell said.
They’ve tried to fill the gap. And while other funders have come through, she says “nobody can fill a $6.5 million hole. Period. End of story.”
While some members of the House and Senate have said they support Legal Aid, there’s been no movement toward ending the freeze early. That means 2026 is looking to be a tough year for those in need of free legal help in North Carolina.
