General counsel and chief legal officers from 208 corporations told lawmakers in Washington, D.C., to "strengthen its investment in equal justice" by earmarking more money for LSC, saying the nonprofit's funding "has not risen comparably to other federal programs."
In the letter, the attorneys said that since 1995, government appropriations have increased at a rate five times as high as the budget for LSC, which funds civil legal aid organizations through grants. The shortage of funding has led to "severe consequences for families across our country," the attorneys said, adding that 92% of civil legal needs affecting low-income Americans go unmet.
"Access to justice is critical to the success of the American economy, including our businesses," the letter says. "Legal aid plays an important role in developing and maintaining the strength of the American workforce on which our companies rely, by resolving barriers to employment, occupational licenses, and educational programs."
LSC President Ronald Flagg told Law360 on Tuesday the letter showed companies understood that broad access to legal representation would benefit not only individuals who struggle financially, but the country as a whole.
"The idea that over 200 of America's leading corporations recognize the importance of civil legal issues and civil legal aid underscores the fact that justice is ... not just about serving people living in poverty," he said. "It's about making the American justice system fairer. And that is a value that benefits all of us."
On March 9, LSC asked lawmakers to infuse $313 million more in its annual budget for the next fiscal year, for a total of roughly $1.58 billion. The organization said the increase in funding was needed to address the demand for civil legal services spurred by the sustained impact of the COVID-19 pandemic on low-income Americans, as well as the ongoing lack of resources fueling the justice gap.
The LSC budget for the current fiscal year, which ends on June 30, is $560 million. It was $489 million in the previous fiscal year.
Flagg called the recent budget increases "helpful," but pointed out that funding for the nonprofit has grown slowly in the past decades. It was $400 million in 1994, and went up by "only" $89 million until 2022.
"Not remotely enough to keep up with inflation, much less recessions, the pandemic, the increase in the poverty population," Flagg said.
The current budget request takes into consideration the funding necessary to provide civil legal aid to people who are eligible for it but who get turned away because of a lack of resources. Flagg said about 50% of people who request legal assistance end up not getting it. That includes large numbers of people experiencing domestic violence, facing the loss of their homes, or being denied veterans benefits, he said.
The Biden administration has asked Congress to earmark $800 million for LSC, $100 million more than it recommended last year, the organization said in a statement accompanying its budget request. Flagg thanked the White House, but said more is needed — roughly double that amount.
"The people who our grantees serve are in desperate situations, legally and financially, and the pandemic has created additional legal and financial hardships for many Americans," Flagg said in the statement. "LSC's board of directors has indicated that Congress' investment in civil legal aid must grow substantially in order to combat the immense justice gap."
On Tuesday, the National Legal Aid & Defender Association hailed the letter, which was also signed by companies such as Nike, The Walt Disney Co. and General Electric, as a sign the American corporate world is paying attention to the lack of legal representation in the country.
"Corporate leaders understand the importance of access to justice in America, because it directly affects the strength of our workforce and our economy and is central to the fundamental American concept of fairness in the legal system," NLADA President April Frazier Camara said in a statement. "Whether a person receives a fair day in court should not depend on their economic status, and civil legal aid organizations across the country must have sufficient resources to assist those who cannot afford legal representation."
--Editing by Lakshna Mehta.
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