Welcome to the February edition of our newsletter, Policy Matters. We are deep in state budget advocacy, so this month, we bring you information on the Interest on Lawyers Account, joint budget hearing testimony and CASH updates. More below!
New York State Budget Update: Interest on Lawyers Account (IOLA)
As we shared in January, the Executive budget did not include full appropriation of IOLA funds to support contractual obligations starting April 1. IOLA funds are not taxpayer dollars but they must be appropriated in the budget to be spent. Advocates were hoping that this would be corrected in the Governor’s 30-day amendments. However, those were released on Thursday, February 19 and unfortunately did not include any changes for IOLA. We, along with partners in the private bar and elsewhere, will push to ensure full appropriation of $102.5 million in the legislature’s one-house budgets and in the final state budget.
IOLA funds allow civil legal services providers to provide critical services, such as representing immigrant children and victims of domestic violence, supporting kids facing discrimination and bullying in schools, and helping families stay in their homes. Because these are not taxpayer dollars, they help to reduce the strain on taxpayer-funded sources. If our communities and clients can’t access these resources, the need does not go away and will likely fall on the Legislature and the Governor to fund these services directly.
Here are some key developments:
- President and CEO Kristin Brown testified Thursday, February 12 before the Joint Legislative Hearing on the Executive Budget Proposal regarding Public Protection, asking the legislature to address cuts to the Interest on Lawyers Account (IOLA). Kristin’s testimony is available to read on our website or watch. The New York Legal Services Coalition also testified. At the hearing, Senator Krueger and Assemblymembers Dinowitz and Simon spoke strongly in support of IOLA.
- Nearly 7000 people have sent letters to urge Governor Hochul and the legislature to address the funding shortfall.
- New York State Bar Association wrote a letter to Governor Hochul and submitted testimony in support.
- City Bar Justice Center Urges Governor to Fully Fund IOLA to Support New Yorkers at Risk
- Queens Eagle: Civil legal service fund go unchanged in gov’s budget amendments
Legislative Advocacy
The legislature is taking in information to inform their one-house budgets, which will be released the second week in March. Here are some highlights of the advocacy we’ve been doing on our Policy Priorities and in response to the Executive budget.
Testimony: We provide testimony to the Joint Legislative Budget Hearings.
- Public Protection: As mentioned above, Kristin Brown testified in person. Our testimony included:
- The Office of Court Administration’s Judiciary Civil Legal Services (JCLS), which is core funding for Empire Justice and our peers,
- Full appropriation for IOLA,
- Privacy in Court Ordered Name Changes (S.XXXX Krueger/A.3925 Lavine) to eliminate risks by creating a privacy category for name changes similar to family court proceedings,
- Support for our Crime Victims work via the Office of Victim Services, and
- Contracting reforms to ensure prompt contracting and payment for nonprofits to help address common issues, such as chronic contracting and payment delays.
- Human Services: Our testimony includes the Disability Advocacy Program (DAP), Benefits, Eviction Prevention, and funding for the Managed Care Consumer Assistance Program (MCCAP). The MCCAP network provides essential assistance to low-income seniors and people who live with disabilities, including educating vulnerable populations about their Medicare options and the federal and state programs that help them afford and access their healthcare. Each enrollment into Medicare cost-saving programs advocates process saves an individual approximately $8,420 in annual out-of-pocket health care costs, yet Empire Justice’s program has not seen an increase in over 15 years. As costs continue to rise, hitting low-income families and the elderly the hardest, help is still needed to assist New Yorkers fully leverage the recent expansion of the Medicare Savings Program. We are pushing for a $1 million increase in funding for the MCCAP program, which has not had an increase since its inception in 2006, and with this increase, it would bring the total funding to $2.767 million.
- Health: Our testimony for health covers our Medicare and Medicaid work, ensuring those with the highest needs have access to the care to which they are entitled.
Advocacy Days: During “Advocacy Days” members of our staff and partners meet directly with legislators and their team to advocate for policy and funding priorities.
- New York Legal Services Coalition: We joined our peers to discuss the key issues facing the civil legal services community, notably restoring IOLA funding, and supporting JCLS funding.
- Homeowner Protection Program (HOPP): the HOPP team at Empire Justice Center joined colleagues from around the state for the advocacy day at the Capitol! Together, advocates championed to preserve the full $40 million proposed in the Executive Budget. Additionally, we are advocating that the final budget includes language to write the HOPP program into state law (S.2627 Kavanagh/A.1625 Solages). As New York State’s only statewide homeowner retention program, HOPP is a statewide network of 89 nonprofit legal services and housing counseling agencies that provides assistance to homeowners in mortgage default and facing property tax foreclosure in every county of the state.
- Education Debt Consumer Assistance Program (EDCAP): On January 28, we joined statewide advocates to request the legislature accept the proposed $6 million in Governor Hochul’s Executive Budget proposal and include the traditional legislative addition. EDCAP provides free, unbiased assistance to student loan borrowers struggling to manage their debt. With one in four borrowers now facing default—and the risk of harsh collection actions like wage garnishment and tax refund intercepts—EDCAP’s services are more critical than ever amid limited repayment and relief options. EDCAP has saved New Yorkers millions of dollars in student debt repayment—money that has been reinvested in New York’s economy.
- Disability Advocacy Program (DAP): On February 3, DAP advocates gathered at the state Capitol to champion increased funding for the DAP program. DAP provides legal assistance to some of New York State’s most severely disabled adults and children in every county, to help them through the appeals process after their claims for Supplemental Security Income (SSI) or Social Security Disability (SSD) benefits are denied or terminated. The program has not seen an increase since 2022 and has not kept pace with the cost of providing services, including salaries and healthcare costs. We are asking for an Increase in DAP Funding to $7.5 million in the final budget, up from $5.26 million in previous years, before the county match, and for DAP to be included in the Office of Temporary and Disability Assistance’s Human Services cost of living adjustment.
And more advocacy days scheduled to come—be sure to watch for updates!
CASH News!
- CASH is open for the tax season this year! Creating Assets, Savings, and Hope (CASH) is our free tax preparation program, offering support to low-income people in Monroe County, helping to ensure they are claiming all the tax credits to which they are entitled. CASH offers appointments from Tuesday, January 27, through Wednesday, April 15! You can take the pre-screening survey and schedule your tax appointment online. 2025 taxes are filed from January-April. Prior year taxes for 2024 and 2023 can be filed with CASH in March ONLY, and 2022 in March or April. Schedule your appointment now!
- After announcing the loss of substantial funding and layoffs in Fall 2025, we are pleased to share that CASH has received a one-year grant from the Mother Cabrini Health Foundation to keep several program staff, supporting our capacity to promote the financial stability of low-income Monroe County families for the 2025 tax season. More specifically, the grant supports our ability to market the program effectively, engage our strong referral networks and connections to other service providers to the benefit of our tax prep clients, and provide opportunities for our retiree volunteers to find community. Many thanks to the Mother Cabrini Health Foundation for their support!
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The Empire Justice Policy Team
