US courts run out of money to pay court-appointed criminal defense lawyers

The federal judiciary ran out of money earlier this month to pay court-appointed criminal defense attorneys, meaning they will have to wait to be paid until the next fiscal year begins in almost three months.

The U.S. court system on July 3 depleted its funds for private defense lawyers appointed under the Criminal Justice Act to represent defendants who can’t afford a lawyer, according to a July 15 press release from the judiciary.

The nearly three-month pause on payments until October 1 is the longest ever, and is a result of fiscal year 2025 funding being held to 2024 levels, according to the judiciary. During previous budget crises, the longest pauses lasted weeks, not months, the U.S. Courts press release stated.

The judiciary says it needs more than $100 million to pay for the constitutionally-mandated representation of indigent defendants until October. Lawyers could be paid sooner if Congress authorizes emergency spending.

Amy St. Eve, a Chicago-based federal appellate judge who chairs the Judicial Conference’s budget committee, said the government’s inability to pay until October might cause some lawyers to decline new cases, which could leave defendants without adequate representation.

“The payments will not be made because we simply cannot afford to make them,” St. Eve told a Congressional subcommittee last month.

Private-sector attorneys and federal public defenders’ offices collectively represent more than 90% of all criminal defendants. Public defenders represent about 60% of indigent defendants, while the other 40% are represented by private lawyers who are members of a judicial district’s Criminal Justice Act panel; they’re known as panel attorneys.

When the new fiscal year comes and new funds become available, the judiciary will have to pay its overdue bills first, leaving it at risk of facing the same issue next year if funding remains flat. In May, the judiciary requested $1.8 billion for defender services, an increase of $315 million, or 22%, over the fiscal 2025 hard-freeze level. That request included money to cover the deferred payments from this year, as well as additional staff at federal defender organizations.

Public defender’s offices “are already seriously understaffed,” the press release states, noting they’ve been under a hiring freeze for 17 of the past 24 months “because of tight budgets from Congress.”

“Many defender offices are experiencing increased burnout among employees working excessive overtime,” the release states.

The government pays panel attorneys less than market rate. They earn $175 per hour in non-capital cases and up to $223 per hour in capital cases. The total pay per case is also capped. As of Jan. 1 of this year, panel attorneys earn a maximum of $13,600 in non-capital felony cases, $3,900 for misdemeanors and $9,700 on appeals. The rates cover office overhead and other expenses – not just compensation.

Gerald Ruter, one of two lawyers who leads Maryland’s CJA panel, said he would be able to “weather the storm,” but was worried about lawyers with less experience who do most of their work through CJA appointments.

“It could be very difficult for some folks,” he said. “Clearly not enough money is apportioned for the Criminal Justice Act.”

Panel attorneys are still working, he said; the judiciary encouraged lawyers to continue submitting invoices.

“Most are really committed to the function of representing folks who can’t afford to retain counsel,” Ruter said. “It may be slow in coming, but they will be paid.”