Federal funding update - FY2027

(Updated July 17, 2026)

Media Contact:

Marion Fraley, Communications Director

mfraley@lasp.org | 484-210-5875 or 610-731-3455

White House budget again eliminates LSC | House Appropriations Committee advances bill to cut LSC budget by over 50%

(July 17 2026)

The Fiscal Year (FY) 2027 federal budget process is under way. The White House budget again eliminates the Legal Services Corporation (LSC), LASP’s major federal funder. The House Appropriations Committee advanced a bill to cut the LSC budget by over 50%. Cuts to LASP's funding from LSC would result in fewer legal services that could be provided to local residents.

Current status

Potential impact of 50% federal funding cut on Pennsylvania: 1-page PDF (read, print, download, share)

  • The current 2026 budget for Legal Services Corporation (LSC), approved in January with bipartisan support, provided $540 million for the Legal Services Corporation (LSC), or a 3.6% cut from 2025.

  • The Fiscal Year (FY) 2027 White House budget, released on April 3, proposed eliminating LSC, with $21 million to wind down operations. LSC is LASP's major federal funder.

  • LSC's FY2027 budget request of $2.14 billion was issued April 6 and aims to increase access to high-quality legal services for low-income Americans who cannot afford an attorney. According to the 2022 Justice Gap Report, low-income Americans did not receive any or enough legal help for 92% of their civil legal problems. Increased funding would enable LSC-funded legal aid organizations to serve the eligible applicants they currently turn away due to lack of resources.

  • On April 30, the U.S. House of Representatives Appropriations Subcommittee on Commerce, Justice, Science and Related Agencies (CJS) proposed a more than 50% cut to LSC budget for FY2027, recommending a $268 million appropriation for LSC, a reduction of $272 million. On May 13, the House Appropriations Committee voted to advance that cut of over 50%.

By the numbers: LASP's LSC funding

  • FY2025: LASP received a basic field grant from LSC of $2,249,087. LASP also received additional funding from LSC for a new Pro Bono Innovation Fund (PBIF) project, and was awarded a Technology Improvement Project (TIP) grant.

  • FY2026: LASP's basic field grant was $2,162,801. The PBIF and TIP grants continue.

  • A cut of over 50% to LASP's funding from LSC would result in fewer legal services that could be provided to local residents.

What LSC funding provides

As the nation’s largest funder of civil legal assistance, LSC provides direct funding to 129 independent nonprofit legal services organizations serving low-income Americans in all 50 states, the District of Columbia, and U.S. territories.

LSC-funded organizations help over 6 million people in the U.S., D.C. and U.S. territories with their legal problems each year. LASP and other grantees provide no-cost direct representation, resources and education for civil legal matters involving domestic violence, consumer law and debt, housing, elder law and more, to Americans who cannot afford an attorney.

Clients eligible for LSC-funded services have an annual income at or below 125% of the Federal Poverty Guidelines. In 2026, this threshold is $41,250 for a family of four living in the contiguous U.S., or $19,950 for an individual.   

LSC's Pennsylvania Grantee overview
LSC Funding Impact Calculator

Bipartisan Letters of Support for the Legal Services Corporation (LSC) in FY2027

(updated June 18, 2026)

Recent letters from external stakeholders have shared support for LSC in fiscal year 2027. These include:

The economic case for civil legal aid:

For every $1 invested, civil legal aid returns an average of $7, nationally.

2020 PA IOLTA Board study found even greater impact across PA: $1 invested in civil legal aid returns an average of $12.

According to a recent LSC analysis, civil legal aid yields an average return of $7 for every $1 invested. The demonstrated benefits include cost savings—like reduced spending on shelters, emergency healthcare and law enforcement—as well as improved family stability and increased participation in local economies.

A January 2020 study by the Pennsylvania Interest on Lawyers' Trust Accounts (PA IOLTA) Board found that civil legal aid returned $12 for every dollar invested.

In FY 2025, LSC received a Congressional appropriation of $560 million through a Continuing Resolution signed by President Trump. This was flat funding based on the FY 2024 appropriation for the federal government.

Legal aid organizations serve all 67 counties in Pennsylvania. The 2020 PA IOLTA Board study looked at legal aid's economic impact across PA and found that $1 invested in civil legal aid returns an average of $12. bit.ly/PA-IOLTA-2020

The demonstrated benefits include cost savings—like reduced spending on shelters, emergency healthcare and law enforcement—as well as improved family stability and increased participation in local economies.

By helping individuals resolve legal challenges, legal aid reduces the burden on government services and strengthens communities.

legal aid organizations serve every county in the nation and deliver results for clients, along with economic impact. The Legal Services Corporation's analysis of 20 years of studies (2003-2023) shows that for every $1 invested, civil legal aid returns an average of $7, nationally. lsc.gov/roi

LSC 101: About Legal Services Corporation

Legal Aid of Southeastern PA is 1 of LSC’s 129 grantees in the United States, Washington, D.C. and U.S. Territories, and 1 of 7 LSC grantees in Pennsylvania.

Learn about the Legal Services Corporation (LSC)’s vital role in ensuring access to justice nationwide. LSC 101 fact sheet (1-page PDF): read, download, print, share.

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