JACKSONVILLE, Fla. — Major changes could be coming for the agency that helps thousands of struggling Floridians every day. Legal Aid provides free or low-cost legal help for people who can’t afford a lawyer, but a bill filed this week could threaten much of its funding.
Whether it’s eviction, divorce, or immigration, Jacksonville Area Legal Aid has been there for thousands of people who can’t afford to hire an attorney. Jim Kowalski is the President and CEO and is about to enter a fight to maintain funding.
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“When you’re trying to manage a law firm that serves the low, low income and at-risk community in Northeast Florida,” he says, “and you personally know your staff and you know your clients, it does get a little personal.”
Legal Aid is funded by the interest earned on accounts attorneys use to hold clients’ money. Two years ago, the Florida Supreme Court compelled banks to pay higher, more competitive interest rates on those accounts, increasing the amount of money sent to Legal Aids across the state. But Wednesday, the banks filed a bill to roll that back.
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If passed, Kowalski says, “we, in all the Legal Aids in the state, would have to retract in 2026. That’s what we’re worried about. .”
Here’s why: after the Supreme Court’s move, the change was dramatic. Between 2022 and 2024, funding went from just under $10 million a year for the entire state to almost $280 million. That allowed Legal Aid to dramatically expand its services and help more people.
In Northeast Florida, Kowalski says, “We hired a lawyer in St John’s County. We’ve doubled our staff in our pro bono. We’ve added a lawyer in Nassau County.”
But if the bill passes, he says, it would all be in jeopardy of going away, slashing budgets, staffing and the number of people who get legal help.
“Our low-income clients who work in the service and tourism industries,” he says, “that’s where the effect will be felt. Not the banks that have to pay incrementally more interest.”
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Brevard County Representative Robert Brackett, the sponsor of the bill, didn’t respond to our requests for comment.
The lobbyist who represents the bank special interest group behind the bill sent a statement:
“For decades, Florida banks have supported the Florida Bar’s Legal Aid Foundation, which is engaged in important work to make sure every Floridian has access to quality legal representation when they need it most. We fully intend to continue supporting that mission,” said Scott Jenkins.
“Unfortunately, in recent years, the Florida Bar has demanded that banks pay an exorbitant interest rate on the accounts where lawyers hold their clients’ settlement money for short periods (Interest On Trust Accounts). The Bar now demands that banks pay a rate more than seven times what the typical non-attorney account receives. With approximately $9 billion moving through these IOTA accounts each year, that interest disparity adds up quickly to hundreds of millions of dollars.
“The goal of the legislation filed is not to end the support for the Bar’s Legal Aid Foundation, but simply to establish a fair method for setting the appropriate interest rate that should be paid. In fact, the bill improves the accountability of the program, settles the recent controversy, and ensures the program can continue to fulfill its mission for Florida’s underserved.”
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