
FAYETTEVILLE, N.C. (WTVD) -- Legal Aid of North Carolina may close its offices in Fayetteville or Pembroke as a result of a state funding pause that has already forced layoffs and program cuts across the state, putting free legal services for low-income residents at risk.
The potential closures stem from Senate Bill 429, signed into law in July as part of the Public Safety Act. The law halted grant distributions from one of Legal Aid's largest funding sources for one year, creating a multimillion-dollar shortfall for the nonprofit.
As a result, Legal Aid of North Carolina has laid off 56 full-time employees, reduced staff, and closed nine offices statewide, including in Gastonia, Boone, Asheville, Concord, Gold Sparrow, Rock Mount, Henderson, and Ahoskie. The organization provides free legal assistance to domestic violence survivors, veterans seeking benefits, and people recovering from natural disasters.
"Every year, we handle thousands of domestic violence cases across the state. If legal aid lawyers are not available to go to court with people and help them get this remedy, it means communities aren't safe," said Ashley Campbell, CEO of Legal Aid of North Carolina.
Campbell said the funding pause has forced the organization to make difficult decisions that directly affect communities like Fayetteville that have relied on Legal Aid in times of crisis.
"So we worked with people in the Fayetteville community following Hurricane Matthew to help them recover with a variety of different legal needs that come up, whether it's FEMA appeals, filing for insurance benefits, lots of different legal issues arising after a disaster," Campbell said.
Legal Aid often serves as a critical resource for people trying to rebuild their lives. One resident, Amber, said the organization helped her expunge her criminal record, something she could not afford to do on her own.
"I certainly would not have had the money to get a lawyer and have that record expunged," Amber said.
She said private attorneys quoted her thousands of dollars for the same service.
"As a person who would not have been able to afford a lawyer, because to get a lawyer to expunge the case, I did contact one, and it was going to be around 3 to $4000 And I just don't I don't have that. It just, it opened up such great opportunities for me and for others that would not be able to afford to obtain a lawyer right now."
About 15% of Legal Aid's funding comes from IOLTA - Interest on Lawyers' Trust Accounts. By law, attorneys must deposit certain client funds into interest-bearing IOLTA accounts, with the interest collected by the State Bar and distributed as grants.
Last year, IOLTA distributed approximately $12 million in grants across North Carolina.
The provision in Senate Bill 429 barred the distribution of IOLTA funds for one year. During the committee meeting, Rep. Harry Warren, chair of a legislative committee, said, "IOLTA has also gone somewhat rogue, awarding grants to leftist groups with leftist ideologies."
Campbell said Legal Aid of North Carolina does not engage in political or advocacy work and instead focuses on providing direct legal services.
"Our Pembroke office has been open for decades, and our founding director of that office actually was the first lawyer in North Carolina to file for federal recognition for the Lumbee tribe. Of course, that recognition was granted this year, and we want to be there to support the people in that community as resources come in and as opportunities become available," she said.
Campbell said the organization is mobilizing pro bono volunteers statewide to help fill the gap created by the funding pause, though she said volunteers cannot fully replace the staff and offices that have been lost.
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