End the “Justice Tax” and Expand New Yorkers’ Access to Affordable Legal Assistance
New York State has a rare opportunity this session to pass a bill that costs the state nothing, helps thousands of working families, and makes New York more affordable. My legislation, S.3147/A.8006, would eliminate a $50-per-hour fee that stands between everyday New Yorkers and affordable legal help—a fee that exists in no other state and provides zero value to New York.
The Senate previously passed my legislation twice. Now I’m calling on the State Assembly to pass A.8006 this session.
The Affordability Wall
The wealthy keep lawyers on speed dial. Corporations consider counsel a requirement. Governments possess unlimited access to legal help.
Everyday New Yorkers? Not so much.
A key culprit? Cost. The average billable hour attorneys charge in New York State is nearly $400.
Need a simple will? That can cost as much as $1,000. Help with IRS correspondence? That’s $1,500 for a basic letter. Uncontested divorce? Your fee will cost more than $2,500 with a lawyer’s assistance.
For working families, these aren’t just numbers—they’re impossible choices. A single legal matter can cost as much as a month’s rent or several months of groceries. The result? Most New Yorkers simply go without legal help when they need it most.
The reality is everyday New Yorkers face an affordability wall when it comes to accessing basic legal advice that the more fortunate or better resourced take for granted. And it shows. In New York City, four out of five consumer debt cases end in default judgments for creditors—not because the claims were tested in court, but because the litigants couldn’t afford an attorney or didn’t know how to respond.
The traditional hourly bill puts access to justice out of reach for regular New Yorkers. This contributes to what is often referred to as the “justice gap,” a gap that, according to the New York County Lawyers Association (NYCLA), has “become a chasm.”
We can all agree that all New Yorkers deserve access to justice.
A Solution Exists—But New York Penalizes It
Five decades ago, an industry emerged to address the affordability problem by creating a category of products called non-indemnity prepaid legal service plans. The industry removed cost as the barrier preventing millions from accessing legal help.
Modest monthly memberships, instead of hourly billing, cover the cost of members to access a schedule of common legal services from dedicated law firms. Today, such memberships cost about $1 to $2 a day. Everyone wins – regular people can benefit from the unlocking of access to legal help that the wealthy, corporations, and governments enjoy.
So, what’s the rub?
In order to offer these non-indemnity legal service plans in New York, companies selling these plans must impose a unique and burdensome $50 “Justice Tax” on members who use these plans for every hour partner lawyers spend helping them on common legal issues.
New York is alone – no other state adds this fee. The effect is an unnecessary barrier on a service intended to expand access to legal help.
Here’s the kicker: This fee provides no revenue or value to the state — it doesn’t support courts, public programs, or operations. Instead, it functions only as bonus revenue for law firms while creating an obstacle for those who need help most.
The Real Cost of the “Justice Tax”
Consider the math: A simple divorce that might take five hours of attorney time suddenly costs a member $250 on top of their membership fee. An adoption or name change? Another $150-$300 in additional fees. Meanwhile, members in every other state pay only their modest monthly membership with no per-hour penalties.
This fee doesn’t just make legal help more expensive—it defeats the entire purpose of prepaid legal plans, which is to make justice affordable for working New Yorkers.
When legal help becomes unaffordable, small problems become big ones. An ignored IRS notice becomes a lien. A simple dispute becomes a lawsuit. A misunderstood contract becomes a financial disaster. The “Justice Tax” doesn’t just cost New Yorkers money—it costs them financial stability, peace of mind, and equal treatment under the law.
To be sure, the origins of the $50 fee were well-intentioned — the “Justice Tax” dates to 2000, when regulators sought to ensure attorneys paid under such plans were compensated for unpredictable legal matters. However, the architecture of these plans already account for such circumstances. Servicing firms are paid primarily based on total state membership. Members already pay for access, and if necessary, have access to discounted hourly rates if a matter becomes complex.
The unintended consequence is that the $50 fee functions as a barrier to early legal help for those who can least afford it.
Time to Act
There’s a simple, no-cost solution. I sponsor legislation in the Senate — S.3147 — to eliminate the “Justice Tax” entirely and bring New York in line with every other state. The State Senate has already passed this bill twice, and we are poised to pass it for a third time this session.
The companion Assembly bill, A.8006, is ready for action. A.8006 is a commonsense, practical reform that removes unnecessary friction and gives residents more access to legal help. Eliminating this $50 fee means the difference between a New Yorker getting early legal help to prevent a problem and watching that problem spiral into a crisis they cannot afford to resolve.
It’s time for the Assembly to act so we can finally get this bill to the Governor’s desk. Ending the $50 fee is a straightforward, cost-free step toward closing the justice gap and making real, meaningful justice attainable for all.
It’s time to finish what we started and deliver this critical reform to the people of New York.
Jeremy Cooney represents the 56th Senate District in Rochester and parts of Monroe County.
