New Federal Fund Commits $100 Million Annually for Free Eviction Lawyers for Low-Income Renters Starting in 2026

This legislation, the Eviction Right to Counsel Act of 2025, establishes a dedicated federal funding stream to help low-income tenants facing eviction. It sets up the Eviction Right to Counsel Fund, managed by the Secretary of Housing and Urban Development (HUD), and authorizes $100 million annually from fiscal year 2026 through 2030 to fill this fund. The core purpose is simple: to provide grants to state, local, and tribal governments so they can cover the costs of giving free legal representation to eligible tenants during eviction court cases or housing subsidy termination proceedings.

Who Gets the Free Legal Help?

This bill targets the lowest-income renters. A "Covered Individual" is defined as a tenant whose income is 200% or less of the Federal poverty line. This means the program is strictly means-tested, focusing resources on those who need it most—the folks who absolutely cannot afford a lawyer when their housing is on the line. The legal help covers any civil court case or administrative hearing where a person is being evicted from their primary residence, or when their housing assistance is being cut off. For a single parent working two minimum wage jobs, this bill could mean the difference between fighting an eviction with professional help and being forced out simply because they didn’t understand the complex legal paperwork.

The Catch: Local Laws Must Come First

Here’s where the federal government gets clever about incentivizing local change. To even apply for this grant money, a state, local, or tribal government (an "Eligible Entity") must have already passed "right to counsel legislation." In other words, they must have already guaranteed the right to free legal representation for these covered individuals. This federal fund doesn't start the program; it helps fund programs that already exist. The money can then be used to pay for the lawyers, training, and resources needed to provide that representation, ensuring that local commitment is already in place before the federal money flows.

Priority Funding for Tenant-Friendly Jurisdictions

HUD isn't just handing out money to anyone who qualifies; they have to prioritize certain applicants. The bill explicitly favors entities that have implemented additional tenant protections, specifically those that make it harder for landlords to evict tenants without cause or refuse to renew leases arbitrarily. Priority also goes to governments that require landlords to provide at least 30 days’ written notice before an eviction filing, have set up programs to divert cases away from eviction court, or provide emergency rental assistance. This structure is designed to reward and encourage comprehensive tenant protection policies, pushing local governments to adopt broader reforms if they want a piece of that $100 million annual budget. For taxpayers, this is a dedicated investment in reducing housing instability, but it also means local governments that haven't passed these protective laws will be paying taxes into a fund they can't access.

The Real-World Friction Points

While this bill is a huge potential win for tenants—providing legal muscle in an often uneven fight—it creates a new dynamic for property owners. Landlords and property managers will now almost certainly face represented tenants in court, which significantly increases the complexity and duration of litigation. When a tenant is represented, the process slows down, and the legal costs for the landlord go up, even in cases where the eviction is warranted. This is a clear shift in the balance of power in eviction court, moving it away from the landlord’s traditional advantage and towards a more balanced, albeit more costly, legal process. The bill also gives HUD significant discretion in deciding which local laws qualify for priority funding, which could lead to some administrative debates over whether a local government's policies are “good enough” to jump the line for grant money.