	Introduction

The Legal Services Corporation (LSC) is a private, nonprofit, federally funded corporation that helps provide legal assistance to low-income people in civil (i.e., non-criminal) matters. The primary responsibility of the LSC is to manage and oversee the congressionally appropriated federal funds that it distributes in the form of grants to local legal services providers, which in turn give legal assistance to low-income clients in all 50 states, the District of Columbia, the U.S. territories of American Samoa, Guam, and the Virgin Islands, the Commonwealth of Puerto Rico, and Micronesia (including the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, and Palau). The LSC was funded at $390 million for FY2009 ( P.L. Since its inception, the legal services program has been controversial, and Congress has imposed restrictions on activities of LSC-funded legal services programs. 2847 ) would increase funding for the LSC to $440 million in FY2010 (an increase of $50 million over current year funding) and would keep the current restrictions on LSC activities, except for the one relating to attorneys' fees. According to the House report on H.R. The Senate-passed CJS Appropriations bill ( H.R. By contrast, the proposed Civil Access to Justice Act of 2009, S. 718 , introduced by Senator Harkin (et al.) on March 26, 2009 (and the House companion bill H.R. 3764 , introduced by Representative Robert "Bobby" Scott (et al.) on October 8, 2009), would reauthorize the LSC for six years, increase funding to $750 million per year (for each of the fiscal years FY2010 through FY2015), remove most of the restrictions on activities performed by legal services programs that receive LSC funds, and revise the governance of the LSC. The following section provides information on when the current restrictions were first enacted. The Obama Administration has proposed that funding for the LSC be increased to $435 million for FY2010, and that LSC restrictions on class action suits and attorneys' fees be eliminated. 111-117 , the consolidated appropriations for 2010 (enacted December 16, 2009), included a provision that appropriates $420 million for the LSC for FY2010 (which exceeds the previous all-time high level of $400 million). The LSC Act and various annual appropriation laws contain restrictions on activities in which recipients of LSC funds may engage, and on types of cases in which LSC-funded legal services providers/programs may provide legal representation. 93-355 ) contains restrictions against lobbying, political activities, class actions (except under certain conditions), and cases involving abortion, school desegregation, and draft registration or desertion from the military. 104-134 included provisions that prohibited any funds received by LSC legal services providers/programs to be used for (1) efforts related to redistricting; (2) attempts to influence regulatory, legislative or adjudicative action at the federal, state, or local level; (3) grassroots lobbying; (4) attempts to influence oversight proceedings of the LSC; (5) class action suits; (5) representation of certain categories of aliens; (6) conducting advocacy training on a public policy issue or encouraging political activities, strikes, boycotts or demonstrations; (7) claiming or collecting attorneys' fees; (8) litigation related to abortion; (9) representation of federal, state, or local prisoners; (10) efforts to reform a federal or state welfare system; (11) representation of clients in eviction proceedings brought by a public housing agency if the eviction was based on drug-related activities; and (12) solicitation of clients. P.L. 104-208 (appropriations bill)—September 30, 1996

The prohibition against using LSC funds to assist certain categories of aliens was modified to allow both LSC and non-LSC funds to be used to represent aliens who have been victims of domestic violence or child abuse. 111-117 also continues existing limitations on the use of LSC funds (and non-LSC funds) except for the restriction on the ability of LSC-funded programs to claim and collect attorneys' fees.
The Legal Services Corporation (LSC) is a private, nonprofit, federally funded corporation that helps provide legal assistance to low-income people in civil (i.e., non-criminal) matters. The primary responsibility of the LSC is to manage and oversee the congressionally appropriated federal funds that it distributes in the form of grants to local legal services providers, which in turn give legal assistance to low-income clients. The LSC appropriation for FY2009 is $390 million. Since its inception, the legal services program has been controversial. Congress, through the LSC Act and various annual appropriation laws, has imposed many restrictions on activities of LSC-funded legal services programs. The Obama Administration and certain Congressional proposals would eliminate some of these restrictions.
Under current law, LSC-funded legal services programs may not: (1) engage in partisan litigation related to redistricting; (2) attempt to influence regulatory, legislative, or adjudicative action at the federal, state, or local level; (3) attempt to influence oversight proceedings of the LSC; (4) engage in litigation related to abortion; (5) engage in litigation related to school desegregation; (6) engage in litigation related to draft registration or desertion from the military; (7) initiate or participate in any class action suit; (8) represent certain categories of aliens, except that both LSC and non-LSC funds may be used to represent aliens who have been victims of domestic violence or child abuse; (9) conduct advocacy training on a public policy issue or encourage political activities, strikes, or demonstrations; (10) represent clients in eviction proceedings if the eviction was based on drug-related activities; (11) represent federal, state, or local prisoners; (12) participate in efforts to reform a federal or state welfare system; (13) solicit clients; or (14) engage in activities related to assisted suicide, euthanasia, or mercy killing.
The Obama Administration's FY2010 budget proposed that funding for the LSC be increased to $435 million for FY2010 (which would exceed the previous all-time high level of $400 million), and that LSC restrictions on class action suits and attorneys' fees be eliminated. H.R. 2847, the FY2010 appropriations bill from the House Appropriations Subcommittee on Commerce, Justice, Science and Related Agencies (CJS), as passed by the House (on June 18, 2009) would have increased funding for the LSC to $440 million for FY2010 and would have kept the current restrictions on LSC activities, except for the one relating to attorneys' fees. H.R. 2847, as passed by the Senate (on November 5, 2009), would have increased funding for the LSC to $400 million for FY2010 and would have, in effect, allowed non-federal funds that are received by LSC-funded legal services programs to be used to pay for activities that are prohibited by the LSC, except for litigation involving abortion or prisoners. By contrast, the proposed Civil Access to Justice Act of 2009, S. 718, introduced by Senator Harkin (et al.) on March 26, 2009 (and the House companion bill H.R. 3764, introduced by Representative Robert "Bobby" Scott (et al.) on October 8, 2009), would increase LSC funding to $750 million per year and remove most of the restrictions on activities performed by legal services programs that receive LSC funds.
P.L. 111-117, the consolidated appropriations for 2010 (enacted December 16, 2009), included a provision that appropriates $420 million for the LSC for FY2010. P.L. 111-117 also continues existing limitations on the use of LSC funds (and non-LSC funds) except for the restriction on the ability of LSC-funded programs to claim and collect attorneys' fees.
This report provides background information on the LSC, presents some of the arguments for and against the imposition of the current restrictions on LSC funds, and provides information on when the restrictions were enacted. This report will be updated as warranted.