LSC publishes its first Justice Gap Report. The report shows that for every person helped by an LSC-funded organization, another was turned away because of insufficient legal aid resources. Follow-up studies are published in 2009, 2017 and 2022. 

Congress appropriates special funds for a new Technology Initiative Grants (TIG) program. LSC uses these grants to encourage creative and innovative uses of technology and enhance its grantees’ technical capacity. By 2023, LSC had awarded 892 TIG grants totaling more than $86 million since the program’s inception. 

LSC's budget is cut by $122 million and new restrictions are placed on LSC-funded legal aid organizations. Grantees are prohibited from attempting to influence legislation or participating in class-action lawsuits, among other limitations.

In the final year of President George H.W. Bush’s term in office, LSC receives its largest funding increase in nearly a decade, as Congress allocates $350 million to legal aid.

Congress rejects President Reagan’s earlier proposal to eliminate LSC, but cuts funding by 25%, forcing the closure of 285 legal aid offices around the country. Members of Congress enact several restrictions on the use of LSC funds.

President Carter appoints Hilary Clinton to serve as LSCs Board Chair. She is the first woman to hold the position. 

President Ford names and the Senate approves LSC’s first Board of Directors, with Cornell University Law School Dean Roger Conant Cramton as LSC’s first Board Chair, accompanied by Marshall Jordan Breger, Marlow W. Cook, Rodolfo Montejano, Samuel D. Thurman, Melville J. Broughton, Jr., Glee S. Smith, Jr., Glenn C. Stophel, Robert J. Kutak and Revius O. Ortique, Jr.

On July 25, President Nixon signs the Legal Services Corporation Act creating LSC. The act gives strength to America’s promise of equal justice for all. LSC becomes the largest single funder of civil legal aid in the country, distributing the majority of its funding to independent nonprofit legal aid organizations. This “Basic Field” funding is allocated among three types of geographically defined service areas: General, Agricultural Worker and Native American.

Bipartisan legislation, known as the Mondale-Steiger bill, is introduced in March by Sen. Walter Mondale (D-MN) and Rep. Bill Steiger (R-WI) to create an independent Legal Services Corporation. 

The Reginald Heber Smith Community Lawyer Fellowship is created to attract talented lawyers to public interest law. Initially sponsored by the OEO’s Legal Services Program, the program moved to LSC in the mid-1970s. From 1967 to 1985, when the program ended, there were approximately 2,000 “Reggies.”