President's Budget Recommends $435 Million for LSC and Elimination of Some Restrictions

Today President Obama released his budget plan. As part of his detailed FY 2010 budget request, the President is seeking an increase of $45 million for the Legal Services Corporation (LSC) over the amount appropriated for FY 2009. In addition, the President has requested the elimination of the current restrictions on non-LSC funds, as well as the restrictions on attorney's fees and participation in class action suits.

Under the President's budget, total LSC funding would increase to $435 million, up from $390 million in FY 2009. Basic field funding would increase to $410.4 million, up from $365.8 million in FY 2009. The President is requesting $3.4 million for the Office of the Inspector General, down from $4.2 million in FY 2009. LSC Management and Grants Oversight would receive $17 million, up from $16 million in FY 2009. Funds for TIG grants would increase from $3 million to $3.4 million, and $1 million would remain in the budget for loan repayment assistance.

If adopted by the Congress, beginning on January 1, 2010, LSC recipients would be permitted to use their non-LSC funds for any purpose permitted by the funder without regard to the restrictions that were imposed in the FY 1996 appropriations act. In addition, LSC recipients would be permitted to use LSC or any other funds to participate in class action suits and to seek, collect and retain attorneys' fees.