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Federal indigent defense

Congress Stopped Paying the Government's Own Defense Lawyers. Fixing It Cost $315 Million.

Summary

For three months in 2025 the federal courts had no money to pay the 12,000-plus private attorneys who handle roughly 40% of the government's own indigent-defense caseload. The FY2026 fix Congress enacted raises Defender Services funding 21.7% — and more than half of that increase just repays the hole last year left.

By Nero · July 12, 2026

The Sixth Amendment obligates the federal government to provide a lawyer to anyone it prosecutes who cannot afford one. It does not obligate Congress to fund that lawyer on time. On July 3, 2025 — with three months left in the fiscal year — the money to pay Criminal Justice Act (CJA) panel attorneys ran out, and the Administrative Office of the U.S. Courts said so plainly: private lawyers appointed to defend indigent clients in federal court would not be paid for the work until October 1. More than 12,000 private panel attorneys take CJA assignments nationwide, 85% of them solo practitioners or at small firms, and together they handle roughly 40% of federal cases with publicly financed defense — over 90% of all federal criminal defendants rely on some form of appointed counsel. The freeze wasn't a computer glitch. It was the arithmetic of a judiciary budget held flat at the FY2024 level for a second consecutive year running into a Defender Services account that, unlike most government line items, cannot simply defer its bills without someone going unpaid for finished work.

FY2026 Defender Services funding
$1.77B
+$315.3M, 21.7% vs FY2025 enacted, $1.451B
FY2025 panel-attorney shortfall
$92.6M
paid twice over in FY26 — $185.2M vs restore base + repay deferral
CJA panel attorneys nationwide
12,000+
~40% of indigent-defense caseload vs uscourts.gov, July 2025

What it actually costs to undo a missed payment

The Administrative Office of the U.S. Courts' own FY2026 budget summary lays out, line by line, what it took to move Defender Services from its FY2025 enacted level of $1,450.68 million to its FY2026 request of $1,766.01 million — a $315.3 million, 21.7% increase that subsequent reporting on the enacted compromise spending bill shows Congress funded essentially as requested. Two of those line items are identical, twinned, and tell the real story: $92.6 million to "restore" the base funding panel attorneys actually need, and another $92.6 million to repay the specific vouchers deferred out of FY2025. Combined, $185.2 million — 59% of the entire FY2026 increase — exists solely to undo a hole the government dug in the previous fiscal year. Everything else in the request (pay adjustments, inflation, caseload growth, a shrinking carryforward cushion, and new positions) is ordinary budget growth.

Where the $315.3 million FY2026 increase came from
Components of the increase over the $1,450.7M FY2025 enacted base, $ millions
Pay, inflation & caseload growth$42.6MRepaying the FY2025 panel-attorney shortfall$185.2MReplacing a shrinking carryforward cushion$41.9MStaffing, IT & training increases$45.5MFY2026 funding increase$315.2M
Source: Administrative Office of the U.S. Courts, The Judiciary Fiscal Year 2026 Congressional Budget Summary (April 2025), pp. 41-44
View data as table
FY2026 Defender Services funding increase, by component
Pay, inflation & caseload growth$42.6M
Repaying the FY2025 panel-attorney shortfall$185.2M
Replacing a shrinking carryforward cushion$41.9M
Staffing, IT & training increases$45.5M
FY2026 funding increase$315.3Mover the $1,450.7M FY2025 enacted base; sum per AO summary table

Read the other way, the same document shows a budget that quietly reclassified how it pays its own lawyers. In the FY2026 request, spending on "contractual services" — the category that includes panel attorney payments — jumps from $460.2 million enacted in FY2025 to $677.7 million requested for FY2026, the single largest dollar increase in any obligation category, larger even than the raise in compensation and benefits for the salaried Federal Defender organizations that make up the other half of the system.

FY2026 Defender Services obligations, by category
Total direct obligations requested, $ millions
Compensation and benefits
$712.8M
Contractual services (includes panel attorney payments)
$677.7M
Other (includes grants to Community Defender Organizations)
$302.6M
Rent, communications & utilities
$74.6M
Travel
$18.3M
Source: Administrative Office of the U.S. Courts, The Judiciary Fiscal Year 2026 Congressional Budget Summary (April 2025), p. 44
View data as table
FY2026 Defender Services obligations by category
Compensation and benefits$712.8M
Contractual services (includes panel attorney payments)$677.7MFY2025 enacted was $460.2M
Other (includes grants to Community Defender Organizations)$302.6M
Rent, communications & utilities$74.6M
Travel$18.3M

How close it came to being worse

The final number understates how bad this nearly got. By mid-September 2025, the Judicial Conference was told that $76 million in panel-attorney reimbursements had already gone unpaid, and that the House's FY2026 appropriations proposal — a $120 million increase over FY2025 — still landed $196 million short of what the judiciary said it needed. At that funding level, the Defender Services program warned it would have to defer panel attorney payments for 77 days beginning around June 11, 2026, the longest deferral in the program's history, and shed more than 600 positions from federal defender offices already under a hiring freeze. None of that happened. The compromise spending bill that emerged in January 2026 funded Defender Services close to the full request, and by May 2026, panel attorneys nationwide had received full compensation with no deferral anticipated for the rest of the fiscal year.

The one number that barely moved is the one a defendant's lawyer actually takes home. Effective January 1, 2026, the CJA hourly rate rose from $175 to $177 for non-capital cases and from $223 to $226 for capital cases — a roughly 1% cost-of-living adjustment, set by statute and unrelated to the funding fight. The program's budget grew 21.7%. The pay of the person doing the work grew about 1%. The increase bought back the government's ability to pay its bills on time; it did not raise what those bills are worth per hour.

The takeaway

  • 59% of the FY2026 Defender Services increase — $185.2 million of $315.3 million — exists only to repay the FY2025 shortfall, not to expand the program.
  • The FY2025 lapse was structural, not accidental: a judiciary budget frozen at FY2024 levels for a second straight year met an account that cannot legally defer payment for finished legal work without someone going unpaid.
  • It nearly got worse before it got better. The House's fall-2025 proposal would have forced the longest panel-attorney payment deferral in the program's history and a 600-plus-position downsizing; the final deal avoided both.
  • The hourly rate barely moved. A 1% statutory cost-of-living bump on CJA hourly pay sits inside a 21.7% funding increase built mostly to cover missed payments, not raise what the work is worth.

Dollar figures for the FY2026 build-up and category obligations come from the Administrative Office of the U.S. Courts' own April 2025 Congressional Budget Summary, which frames FY2026 as a request; secondary reporting cited below confirms Congress funded Defender Services close to that request when the FY2026 appropriations act was finally enacted in early 2026.

Sources

  • Administrative Office of the U.S. Courts, The Judiciary Fiscal Year 2026 Congressional Budget Summary (April 2025) — the primary source for the FY2025 enacted ($1,450.68M) and FY2026 requested ($1,766.01M) Defender Services appropriations, the itemized $269.7M "adjustments to base" and $45.5M "program increases," and the FY2026 obligations-by-category table. uscourts.gov
  • U.S. Courts, Funding Crisis Leaves Defense Lawyers Working Without Pay (uscourts.gov, July 15, 2025) — official account of the July 3, 2025 funding lapse, the deferral until October 1, and figures on panel attorney numbers (12,000+), case share (~40%), and defendant reliance on appointed counsel (90%+). uscourts.gov
  • U.S. Courts, Judiciary Budget Crisis Could Worsen, Conference Is Told (uscourts.gov, September 16, 2025) — the $76 million shortfall as of September 2025, the $196 million gap in the House FY2026 proposal, and the warned 77-day deferral and 600-plus-position downsizing that the final deal avoided. uscourts.gov
  • Defender Services Office, Administrative Office of the U.S. Courts, 2026 Increases in CJA Hourly Rates and Case Maximums (fd.org) — the January 1, 2026 CJA hourly rate increase from $175 to $177 (non-capital) and $223 to $226 (capital). fd.org
  • Defender Services Office, Administrative Office of the U.S. Courts, Shutdown Deal Funds Justices' Security, Public Defender Pay (fd.org) — timeline of the fall 2025 government shutdown's effect on CJA payments, including missed paychecks and the November 2025 funding bill that resumed them. fd.org
  • Roll Call, Spending bill would boost court security, public defenders (January 12, 2026) — reporting that the compromise FY2026 spending bill funded federal public defenders at close to the judiciary's full $1.77 billion request, a roughly 22% increase over FY2025. rollcall.com
  • Virginia Lawyers Weekly, CJA panel attorneys to receive full compensation after payment lapse (May 4, 2026) — confirmation that the FY2026 appropriations act was enacted February 3, 2026 at $1.766 billion for Defender Services, and that all FY2025 deferred payments to panel attorneys had been paid with no further deferral anticipated. valawyersweekly.com
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