Critical Funding for Pisgah Legal, Legal Aid Across NC in Jeopardy
Legal aid programs across North Carolina, including Pisgah Legal Services, are facing a major and unexpected funding challenge. Over the summer, state lawmakers quietly added a provision to the state’s 2025 Public Safety Act that freezes millions of dollars dedicated to civil legal aid are being seriously impacted by the sudden funding freeze.
What’s at Stake
Interest on Lawyers’ Trust Accounts (IOLTA) has been a significant source of funding for nonprofits in all 50 states that provide civil legal services to those who cannot afford it. The program pools money from lawyer trust accounts and uses the interest from those accounts to fund legal aid programs at no cost to taxpayers. In North Carolina, the program was established in 1983 by order of the Supreme Court and has awarded $135 million in grants since its inception.
This year, Pisgah Legal Services received about $2 million in IOLTA funding, with much of that funding designated to assist people in Western North Carolina who are still recovering from Hurricane Helene.
Pisgah Legal Executive Director Jackie Kiger says, “Ultimately, it’s the people in need of our services who will be hurt. We have serious concerns that without replacing this funding we will have to turn away thousands of people in the coming year.”
Recent Developments
On October 22, 2025, House Republicans brought IOLTA leaders in front of the House Oversight Committee to attempt to clarify their perceptions that some beneficiaries have operated beyond the Fund’s intended scope. Read more here.
Peter Bolac, Executive Director of the NC State Bar, says that at the request of, and in conjunction with, members of the General Assembly, they are proposing compromise legislation that addresses the concerns raised by GA members while allowing IOLTA funding to continue supporting vital civil legal services in North Carolina.
Impact on 2026
Because of the current legislative freeze, the NC IOLTA Board cannot make any 2026 grant awards. Consequently, civil legal aid programs and other nonprofit legal organizations that have historically relied on IOLTA funding are facing significant shortfalls in the coming year.
Legal Aid of NC has already closed several rural offices and is reducing staff and services overall. At Pisgah Legal, we are working diligently to raise replacement funds through foundations, new partnerships and community support, but the gap is significant.
How You Can Help
SUPPORT OUR WORK
Please support our work by making a donation today! Contact Ally Wilson at (828) 210-3444 to explore all of your giving options.
VOLUNTEER
If you are an attorney or retired attorney, please volunteer to offer pro bono services to assist people here in WNC!
And Join Us for Pisgah Legal’s 2025 Attorney Phone-A-Thon
Thursday, December 11th, from 4-7 PM at Pisgah Legal’s office at 62 Charlotte Street in Asheville.
Local attorneys come together each year to call and thank colleagues who have supported Pisgah Legal’s mission, and to encourage year-end gifts that make this work possible. Enjoy pizza, drinks, and great company to help PLS finish the fundraising year strong.
We hope you’ll join us. Please sign up here by Friday, December 5th.