The Economic Benefits of Vermont Legal Aid

In an era where economic inequality and systemic barriers dominate national conversations, Vermont Legal Aid (VLA) stands as a critical institution not just for justice but for economic stability. While many view legal aid as purely a social service, its economic impact is profound—bolstering local economies, reducing taxpayer burdens, and fostering long-term financial resilience for vulnerable populations.

How Legal Aid Strengthens Vermont’s Economy

Reducing Poverty and Increasing Workforce Participation

Legal aid services help low-income Vermonters resolve issues like wrongful evictions, denied benefits, or predatory lending. By preventing homelessness or financial ruin, VLA enables individuals to stay employed or re-enter the workforce. For example, a single mother facing an illegal eviction can avoid job loss if VLA secures her housing stability. Studies show that every dollar invested in legal aid yields up to $6 in economic benefits by reducing reliance on emergency services and public assistance.

Lowering Healthcare Costs

Unresolved legal problems often exacerbate health issues. A veteran denied disability benefits may forego medical care, leading to costlier emergency room visits. VLA’s intervention ensures timely access to benefits, reducing the strain on Vermont’s healthcare system. Research from the Medical-Legal Partnership movement confirms that legal aid cuts Medicaid costs by addressing root causes of poor health, such as substandard housing or food insecurity.

Supporting Small Businesses and Local Economies

VLA’s consumer protection work combats fraud and unfair debt collection, freeing up household income for spending at local businesses. When a family avoids a predatory loan, they can instead buy groceries, pay rent, or invest in education—circulating dollars within Vermont’s economy. Legal aid also assists small business owners, particularly marginalized entrepreneurs, in navigating regulatory hurdles.

Legal Aid as a Fiscal Smart Policy

Reducing Government Expenditures

Without legal aid, unresolved civil cases often escalate into crises requiring costly state interventions. For instance, a tenant evicted without due process might enter a homeless shelter, costing taxpayers thousands monthly. VLA’s preventative services save Vermont an estimated $8 million annually in avoided shelter costs, foster care placements, and other emergency expenditures.

Attracting and Retaining a Skilled Workforce

States with robust legal aid programs are more attractive to employers and workers. A community where employees can resolve legal issues efficiently—such as wage theft or discrimination—boosts productivity and reduces turnover. Companies like Ben & Jerry’s and Burton Snowboards, which prioritize social responsibility, benefit from Vermont’s reputation as a fair and equitable state.

Addressing Contemporary Challenges

Combating the Opioid Crisis

VLA plays a pivotal role in tackling Vermont’s opioid epidemic by helping individuals access treatment, expunge records for employment, or secure stable housing. Economic recovery for survivors of addiction hinges on legal support; a 2022 study found that legal aid participants were 30% more likely to maintain employment post-rehabilitation.

Climate Resilience and Housing Justice

As climate disasters increase, low-income Vermonters face displacement from floods or unsafe housing. VLA’s advocacy ensures federal disaster aid reaches affected communities, preventing long-term economic decline in rural areas. Their work on energy affordability also reduces household costs, mitigating "heat or eat" dilemmas.

Racial and Gender Equity

Systemic biases disproportionately harm BIPOC and women in economic outcomes. VLA’s anti-discrimination cases help close wage gaps, while immigration legal services protect essential workers in Vermont’s dairy and hospitality industries. Equity isn’t just moral—it’s economic. Diverse, inclusive communities drive innovation and growth.

The ROI of Investing in Justice

Critics argue legal aid is a budgetary drain, but data proves otherwise. For every $1 Vermont allocates to VLA, the state sees returns in reduced court backlogs, lower social service costs, and increased tax revenues from employed residents. In 2023, VLA helped recover $12 million in federal benefits for Vermonters—money spent locally on goods and services.

Legal aid isn’t charity; it’s infrastructure. Just as roads enable commerce, access to justice enables economic mobility. As Vermont navigates post-pandemic recovery and climate challenges, VLA’s role as an economic stabilizer will only grow. Policymakers and business leaders must recognize: investing in legal aid is investing in Vermont’s future.