The North Carolina state budget has been signed into law, and it includes a provision that will redirect funds from the Interest on Lawyers’ Trust Accounts (IOLTA) program away from civil legal aid and towards indigent criminal defense services. This move has been met with pushback from lawmakers, IOLTA officials, and leaders of civil legal aid organizations.

What is Indigent Criminal Defense?

Indigent criminal defense refers to the state’s constitutional requirement to provide attorneys to defendants who cannot afford them. The court must determine whether a defendant is indigent, which can be a complex process. If a defendant is deemed indigent, an attorney is provided at no cost to them.

There are two types of defenders: state-paid public defenders and private assigned counsel. State-paid defenders are considered state employees, while private assigned counsel are not and serve private firms, taking on court-appointed cases as necessary.

Impact of the Budget Provision

The budget provision will ensure that any IOLTA funds received from July 1, 2025, and onward will go towards indigent criminal defense services, specifically the Private Assigned Counsel (PAC) fund. This move is expected to benefit indigent defense services, but it will come at the expense of civil legal aid organizations, which will see a significant reduction in funding.

Civil legal aid organizations, such as Legal Aid of NC, have expressed concerns about the impact of this budget provision. Lesley Albritton, chief operations officer for Legal Aid of NC, noted that while indigent defense services are important, they are distinct from what civil legal aid providers do. Jackie Kiger, executive director of Pisgah Legal Services, argued that funding for indigent defense services should come from the state budget, not IOLTA funds.

Original reporting: Carolina Public Press — read the source article.