Legislation passed by the North Carolina General Assembly on July 9 bars North Carolina Interest on Lawyers’ Trust Accounts (NC IOLTA) from grantmaking through June 30, 2026.
The provision, which was included in legislation initiated in the House and then approved as part of Senate Bill 429, the 2025 Public Safety Act, reads:
All funds received by the North Carolina State Bar, and administered by the North Carolina Interest on Lawyers’ Trust Accounts (NC IOLTA) Board of Trustees, from banks by reason of interest earned on general trust accounts established by lawyers pursuant to Rule 1.15-2(b) of the Rules of Professional Conduct, or interest earned on trust or escrow accounts maintained by settlement agents pursuant to G.S. 45A-9, including any interest dividends, or other proceeds earned on or with respect to these funds, shall not be encumbered or expended for the purpose of awarding grants or for any purpose other than administrative costs during the period beginning July 1, 2025, and ending June 30, 2026.
NC IOLTA typically opens applications for the coming calendar year in July, with the Board of Trustees making final decisions on awards at their December quarterly meeting. Consistent with the legislation, the 2026 funding cycle has not been opened.
NC IOLTA continues to seek a resolution to preserve funding for civil legal aid, which provides a lifeline for low-income North Carolinians in crisis. We will keep stakeholders informed regarding the status of the program and any future availability of funding.
Read the Nov. 13 update on this issue here.
