White House Proposes Elimination of Legal Services Corporation in 2026 Budget

In a significant policy shift, the White House's Fiscal Year 2026 budget proposal, released on May 30, 2025, recommends the elimination of the Legal Services Corporation (LSC), the nation's largest funder of civil legal aid. This move has raised concerns about the future of legal assistance for millions of low-income Americans.

The proposed budget allocates only $21 million for LSC's close-out costs, a stark reduction from the $560 million appropriated in Fiscal Year 2025. Established by Congress in 1974, LSC currently funds 130 independent nonprofit legal aid programs operating over 900 offices nationwide. These programs assist more than five million low-income individuals annually, including over a million children, more than 200,000 survivors of domestic violence, and nearly 45,000 veterans.

LSC's mission is to promote equal access to justice by providing financial support for civil legal assistance to those who cannot afford it. The organization distributes over 94% of its funding to nonprofit legal aid programs that address critical issues such as evictions, foreclosures, domestic violence, fraud, consumer scams, and medical debt.

The proposed elimination of LSC has drawn criticism from various stakeholders. The Conference of Chief Justices warned of "tragic consequences" if LSC is eliminated or its funding reduced. Additionally, leaders from over 150 U.S. law firms have urged the Office of Management and Budget to continue funding LSC, emphasizing that the pro bono work facilitated by LSC funding is a public-private partnership that should be encouraged, not eliminated.

This development is part of a broader trend of proposed budget cuts affecting various domestic programs, reflecting the administration's priorities and sparking debates over the role of federal funding in providing civil legal aid to low-income individuals.

Historically, LSC has faced threats to its funding. In the 1980s, the Reagan administration attempted to eliminate LSC, but it survived due to bipartisan support. Similarly, the Trump administration proposed defunding LSC in its budget proposals, but Congress continued to fund the organization.

The potential defunding of LSC raises significant concerns about the ability of low-income Americans to access legal representation, potentially widening the justice gap. Reducing or eliminating LSC funding could lead to increased public expenditures due to unresolved legal issues escalating into more severe problems requiring government intervention.

As Congress deliberates on the budget, the future of civil legal aid for millions hangs in the balance.