The Legal Services Corp. is asking Congress for $2.14 billion in fiscal year 2027 to fund civil legal services for low-income Americans who cannot afford an attorney.

The request by the LSC, the nation's largest funder of civil legal aid, seeks a major infusion of resources that its officials argue is necessary to fill an enormous gap in legal needs that continues to shut low earners out of the civil justice system.

The proposed funding increase would primarily flow through LSC's basic field grants, which support 129 independent legal aid organizations operating in more than 900 offices across every state and territory. The agency said $2.09 billion of the total request would go toward those grants, allowing providers to serve hundreds of thousands of additional clients who are currently turned away.

In its proposed budget for FY 2027 released Friday, the White House recommends eliminating the LSC altogether, requesting only $21 million "to conduct an orderly closeout" of the organization "as part of the administration's plans to move the nation towards fiscal responsibility and to redefine the proper role of the federal government."

Last year, the organization requested $2.1 billion in funding, but Congress ultimately appropriated $540 million through a bipartisan bill that President Donald Trump signed in January, but only after the White House proposed slashing the organization.

"Legal services help the people who need it most — whether that's a senior who has been scammed out of their lifesavings, a survivor of domestic violence seeking legal protections or a family struggling to rebuild after disaster strikes," LSC President Ron Flagg said in a statement. "These are the Americans who turn to LSC-funded legal services when they have no means to hire a lawyer and no way to solve their issue alone."

According to a report published Monday, legal aid organizations funded by LSC are currently forced to turn away nearly half of eligible applicants due to resource constraints, amounting to roughly 1.8 million people each year.

"That doesn't even include the people who don't know that they have a legal problem, or don't know that legal aid exists," Flagg told Law360 in a phone interview.

LSC also pointed to broader economic pressures driving demand for services, including rising housing costs, consumer debt and gaps in access to healthcare. These factors disproportionately affect low-income households, many of whom must navigate complex legal systems without representation.

The organization estimates that about 52 million Americans — roughly one in six — qualify for LSC-funded services based on income. Yet even among those who seek help, only about one-third receive full legal assistance due to the underfunding of the legal aid providers.

The consequences of that shortfall can be severe, the report said, particularly in high-stakes areas such as housing and domestic violence. For example, tenants and consumers are represented in fewer than 5% of cases, while opposing parties such as landlords and debt collectors have counsel in the majority of cases.

The imbalance, LSC said, contributes to higher rates of eviction, wage garnishment and denial of protective orders for unrepresented litigants.

Housing issues in particular have emerged as the most common legal problem handled by LSC grantees. In 2024, housing cases accounted for 37% of all matters closed, reflecting ongoing affordability challenges and eviction risks across the country.

The report also highlights growing strain on legal aid providers themselves. Many organizations face staffing shortages, high turnover and difficulties recruiting attorneys, in part because legal aid salaries lag behind other public interest roles. In 2024, turnover rates exceeded 15%, far above the national average, according to the report.

LSC said its funding request includes provisions aimed at stabilizing the workforce, including raising attorney compensation to levels comparable to public defenders.

According to an LSC study published in 2022, low-income Americans lack legal help for 92% of their substantial civil legal problems.

Flagg said the funding increase is necessary to serve people who are dealing with day-to-day issues requiring legal assistance.

"We don't just come up with this number out of a hat," he said. "Our budget request annually is our calculation of the amount that it would take to enable our grantees to fully serve all of the people who make it to their door."

Many of the people requesting legal aid are dealing with housing issues, which saw a dramatic uptick during and after the COVID-19 pandemic. Workers looking for a fresh start by sealing nonviolent records and veterans who have seen their veteran benefits denied or taken away are other common situations where LSC grantees can make a difference, Flagg said.

Flagg described funding legal aid properly as a "smart public investment" that helps avoid greater costs for society, including tax dollars, by preventing issues from escalating.

"If you resolve legal problems early, we keep them from snowballing and reducing strains on public systems like emergency rooms, first responders, homeless shelters," he said. "Our studies around the country show that legal services have one of the highest economic returns."

Flagg said funding for civil legal aid has been receiving more bipartisan support than in the past.

"Even in a polarized environment, Congress consistently supports LSC," Flagg said "That tells you that this is not a partisan issue."

--Editing by Kelly Duncan.