Legal Aid of North Carolina (LANC) has closed its Pembroke office in response to a freeze on over $6 million in funding from the North Carolina Interest on Lawyers’ Trust Accounts (NC IOLTA). This closure marks the second office shuttered in a short span due to the funding halt, which has posed significant challenges to the nonprofit that serves some of the state’s poorest communities. The freeze comes after Republican lawmakers expressed concerns about the allocation of funds to groups perceived as having leftist ideologies. The cut in funding from NC IOLTA—historically the second-largest financial support source for LANC—has placed immense pressure on the organization to sustain its operations.
The impact of this office closure is particularly profound in Robeson County, an area identified as facing persistent poverty, where many residents rely on Legal Aid for essential services. This includes veterans, seniors, survivors of domestic violence, and disaster victims. The nearest Legal Aid office is now approximately a 45-minute drive away in Fayetteville. Such distances are especially burdensome for those without reliable transportation means, highlighting the critical role the Pembroke office played in offering accessible legal support.
The NC IOLTA program, designed to fund civil legal services using interest generated from lawyers’ trust accounts, was frozen by the North Carolina General Assembly due to apprehensions that the funds were supporting politically aligned organizations. During a recent hearing, the issue of funding allocation was discussed, with lawmakers questioning the criteria for grant distribution. Concerns were particularly raised over the financial support directed toward groups with commitments to diversity and those in opposition to local law enforcement’s cooperation with ICE. The executive directors of both the North Carolina State Bar and NC IOLTA testified, emphasizing the adverse impact this funding freeze is likely to have on rural communities.
The closure of the Pembroke office, a cornerstone of community support since its establishment in 1978, has halted plans to open a new downtown location, leaving uncertainty about LANC’s long-term presence in the area. Efforts to maintain access to justice are ongoing, as the nonprofit collaborates with local partners to find sustainable solutions for keeping services accessible. Despite opening a new office in Raleigh with city funding, the financial gap left by the NC IOLTA freeze threatens additional closures, potentially affecting another eight to ten offices across North Carolina.
For the legal community and those reliant on such services, the situation remains dire. The organization appeals for swift legislative action to address the funding shortfall and ensure continued support for vulnerable populations in rural and underserved areas. More detailed information about the closure and its implications can be found in recent reports on the issue.