2026 State Budget includes highlights for Legal Services, more work to be done
The New York State budget was recently finalized and included steady, and in some cases, increased funding for civil legal services in a number of state programs.
Two core funding sources — funding that can be used to provide a wide array of legal services –were fully funded, with built in increases, which is a win for the civil legal services and the low-income and marginalized people we serve.
- The Interest on Lawyers Accounts (IOLA) – fully funded at $102.5 million. IOLA is not tax-payer dollars but must be appropriated in the budget. This amount is in line with what the IOLA board approved for the second of a five-year contract and its Justice Infrastructure Project
- The Judiciary Civil Legal Services (JCLS) – the Office of Court Administration included $179.5M for civil legal services, inclusive of a $25 million increase and a 3% Cost of Living Adjustment
“We are grateful to the Governor, Legislative leaders, and the Chief Judge for the support of civil legal services,” said Kristin Brown, President and CEO of Empire Justice Center. “Increased funding is critical to help us address the recruitment and retention crisis facing our field broadly, and the expansive unmet need for services. Additional changes at the federal level – including changing rules and cutting funding – means our work has never been more under threat, nor more necessary.”
Key issue specific programs were also funded:
Foreclosure Prevention: The Homeowner Protection program (HOPP)
The HOPP network helps homeowners facing foreclosure stay in their homes. Foreclosures are on the rise in New York State, including property tax foreclosures that disproportionately affect seniors. At the same time, federal funding cuts and reduced consumer protections are leaving vulnerable families with fewer places to turn for help. HOPP-funded advocates are often the first, and sometimes only, line of defense in helping vulnerable New Yorkers preserve their homes.
From Jim Dukette, HOPP Anchor Program Director,
“We thank the Governor for including funding for HOPP in the Executive and final state budget, and we are grateful to our legislative champions. Legal services and housing counseling play a critical role in helping New York families maintain homeownership, protect generational wealth, and preserve communities.
Still, with financial strains and housing uncertainties skyrocketing, we need to codify HOPP in state law. The bill has passed the Senate. We call on the Assembly to pass it before the end of session and the governor to sign it. The time is now to make this program permanent to help New York families protect their homes and their financial security.”
Disability Advocacy Program (DAP)
The Disability Advocacy Program (DAP) provides legal assistance to low-income disabled New Yorkers seeking Supplemental Security Income (SSI) or Social Security Disability (SSD) benefits. It was level funded with $5.26 million in the Executive budget and $1.5 million legislative add-on, which then has a county match.
Emilia Sicilia, Managing Attorney, said:
“We are grateful for the State’s continued support of DAP and for maintaining its investment this year. This funding is essential to helping low-income New Yorkers with disabilities access and retain the life-saving benefits they need, particularly with shrinking customer service at the Social Security Administration (SSA) and an unstable policy landscape at the federal level.
While we’re grateful for this long-standing commitment, level funding has not kept pace with rising costs or growing demand. Looking ahead, increased funding and inclusion in the cost-of-living (COLA) adjustment will be critical to ensuring that DAP can continue respond effectively to delays, policy changes, and increasing complexity and administrative burdens faced by claimants. Strengthened investment will ensure that disabled New Yorkers are not left to navigate an increasingly strained federal system on their own.”
Managed Care Consumer Assistance Program MCCAP
MCCAP 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. The Program was level funded at $1.767 million.
From Nate Baldo, Supervising Staff Attorney
“We are grateful for the funding to assist and advocate for Medicare beneficiaries seeking quality, affordable health coverage, and we are grateful for the proposed increase in the Senate one-house. As costs continue to rise, additional resources are needed to assist New Yorkers navigate plan options and subsidy programs. We saw this high demand during the 2025 Medicare Open Enrollment Period, where many callers needed assistance exploring Advantage plans and understanding eligibility for the Medicare Savings Program, Elderly Pharmaceutical Prescription Coverage (EPIC), and other subsidies. We look forward to conversations ahead of next year’s budget to ensure that we have the resources to help low-income and elderly families.”
Student Loan Support via the Education Debt Consumer Assistance Program (EDCAP)
The EDCAP network provides free, unbiased advice to help New Yorkers navigate student loans. The budget included a historic $6 million investment for EDCAP.
New York is currently facing a growing student loan default crisis, with nearly 470,000 borrowers projected to be in default as of early 2026. Nearly a quarter (23%) of adults who have left college report taking no action to address their student loans, while only half (50%) of borrowers report being actively in repayment or in an official deferment status. Following the end of the COVID-19 payment pause, many borrowers have struggled to re-engage with the repayment system amid changing federal guidance, servicing issues, and uncertainty surrounding income-driven repayment plans and forgiveness options.
Jordan Daniels, Student Loan Paralegal:
“EDCAP funding represents a critical commitment to New Yorkers struggling to navigate an increasingly confusing and unstable student loan system. The Governor’s generous expansion of EDCAP funding to $6 million will significantly strengthen our ability to serve New Yorkers in every region of the state. It will allow organizations like Empire Justice Center and our partner agencies to expand outreach, increase legal and advocacy support, and respond to the growing demand for direct borrower assistance during a period of unprecedented federal changes and uncertainty. We are grateful for Governor Hochul’s leadership and continued commitment to consumer protection and economic opportunity for all New Yorkers.”
Addressing the “Skimming” of public benefits
The Executive proposed funding to upgrade Electronic Benefit Transfer (EBT) cards, such as those used for SNAP and other public benefits, to chip-enabled cards with stronger security, similar to credit and debit cards. Without these upgrades, people are at risk of having their benefits stolen through no fault of their own.
Susan Antos, Managing Attorney:
“We applaud the transition to chip cards, which is sorely needed, and urge OTDA to implement this as quickly as possible. We urge the governor and the legislature to include reimbursement of stolen benefits in future budgets. While the transition to chip cards should prevent most theft of public benefits, it won’t eliminate it, and public benefits recipients deserve to be made whole.”
The budget also included:
- $100 million for crime victims – continuation of a three-year commitment by the governor.
- $50 million for the Housing Access Voucher Program, far short of what advocates had been asking for
- Level funding of $55 million in eviction defense funding, including $41.7 million for providers outside of New York City
- Restoration of the Legal Services Assistance Fund, which is traditionally added by the legislature
- Level funding of the Upstate Civil Legal Services – at Empire Justice, this supports our Tenant Defense project in Rochester
- An additional $74.2 million for immigration services and civil legal services
Post budget priorities
Empire Justice’s post budget priorities for this year include:
- Two bills to address delays and inconsistencies in nonprofit contracting. Together, these bills address the needs of nonprofits, while responding to concerns in the governor’s veto last December.
- S.9761 (Mayer) / A.10741 (Paulin) – this bill makes targeted improvements to contracting, payment, and cash flow systems, including in definitions. It will create predictability and transparency in contracting, reduce the need for nonprofits to take on debt, improve cash flow and financial stability, and ensure timely reimbursement for services already delivered.
- S.9855 (Mayer) /A.11179 (Paulin) – this bill makes common-sense reforms to stabilize nonprofit contracting, notably practices of advance payment, with the goal of providing working capital upfront, reducing nonprofits’ reliance on lines of credit, and ensuring continuity of essential services.
- Ensuring Privacy in court-ordered name changes (S.XXX / A.3925 Lavine) – While most name changes – such as for marriage, adoption, and divorce – people who change their name through the courts do not have the same protections. As technology has out-paced court processes, this has meant private information is being scraped and re-published online, including birth certificates, medical records, addresses and more. People who change their names through the courts are more likely to be victims of domestic violence or transgender. The current court processes are putting people in danger and need to be updated.
About Empire Justice Center
Empire Justice Center is a statewide nonprofit law firm whose mission is to make the law work for all New Yorkers, particularly for those who need its protection most. We take a full-circle, 360-degree approach to changing systems by engaging in three major and interconnected areas of service. We teach the law by providing training, support and technical assistance to legal services and other community-based organizations; we practice the law by providing direct, civil legal assistance to low-income people with a particular focus on those from marginalized communities; and we change the law by engaging in policy analysis, research and advocacy and undertaking impact litigation to get at the root of systemic issues. Since 1973, Empire Justice has helped protect and strengthen the rights of millions of New Yorkers.
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