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Should bank interest rates benefiting legal aid be more than other accounts? The Legislature is weighing in

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A fight is brewing in Florida between banks and the Florida Bar over how to fund legal aid for individuals who can’t afford it. 

At issue is an interest rate-setting rule that funds the Funding Florida Legal Aid program (FFLA), formerly known as The Florida Bar Foundation, through the Interest on Trust Account (IOTA) program.

The change has led to interest collections for IOTA accounts that are, in some cases, 10 times higher than similar accounts, such as business checking or savings accounts. 

IOTA accounts are separate checking accounts. The Florida Bar requires nearly every attorney in the state to keep clients’ funds separate from their firm’s operating funds. These accounts hold settlement funds until distribution, and the interest rate on the accounts, set by The Florida Bar, is passed along to FFLA’s IOTA program, which in turn funds legal aid for indigent individuals and other justice system improvement programs, such as legal education.

Most of FFLA’s funding comes from IOTA collections, totaling about $46M in the 2022-23 fiscal year. But that number shot up exponentially to nearly $300 million in the 2023-24 fiscal year after a rule change that amended how to calculate interest on accounts. To put that in context, that’s equal to nearly half the general revenue that the Senate has set aside for the entire court system in the state of Florida. 

It’s a wonky process that might be hard to understand for those who aren’t lawyers or bankers.

For decades, the IOTA interest rate had been tied to interest rates on comparable accounts, typically less than a half percentage point. The rule change, approved by the Florida Supreme Court without input from bankers, instead tied the interest rate to a much higher lending rate, set by the Wall Street Journal Prime Interest Rate. 

After the rule change, that rate shot up to 3%. 

Banks have been attempting to negotiate with the Florida Bar on a rate that provides stability for the legal aid program while ensuring fairness for banks, to no avail. Now, the Legislature is stepping in. Two similar bills have been filed in the House and Senate (HB 173 and SB 498) that would set a much lower interest rate for IOTA accounts. 

According to an explainer on its website, FFLA argues the rule change was needed to ensure “consistency, predictability, and a meaningful increase in funds available for civil legal aid programs.” The website also explains the history of interest rates, depicting volatile changes, including a “rate near zero” during the Great Recession and again after COVID-19. 

However, by tying interest to the Prime Rate, participating banks are forced to pay interest on accounts — which total about $9 billion statewide at any given point — far higher than other customers enjoy. Further, the added cost burden places a disproportionate burden on smaller banks, such as community banks and credit unions, that may be unable to afford the higher overhead. 

The Senate bill, carried by Sen. Erin Grall, would mandate that the Chief Financial Officer set two interest rate alternatives for IOTA each quarter. Financial institutions could choose from the two each year. The state CFO would set one option at the highest interest rate available that is comparable to non-IOTA accounts. The other would be set at 25% of the federal funds target rate or 0.25%, whichever is higher.

The House bill, carried by Rep. Robert Brackett, is similar. It would mandate that rates for similar accounts not be lower than the bank’s highest rate nor less than 0.25%. 

And this Legislature, in particular, has a vested interest in setting its own rules for the IOTA program. 

While it hasn’t been publicly debated, funds from the program are being used for issues the Legislature and Gov. Ron DeSantis have publicly advocated against. 

According to FFLA’s own accounting, recipients include groups like Americans for Immigrant Justice, which in some cases works to fight Immigration and Customs Enforcement actions; CAIR Florida, another group Republicans in the majority often oppose; the Gender Justice Clinic, which helps with transgender issues, such as name changes; and the Southern Legal Counsel, a civil rights advocacy group. 

And FFLA does not need the new windfall from the recent rule change. Of its nearly $300 million in interest accruals in the 2023-24 fiscal year, $142 million went unspent, prompting FFLA to request the Florida Supreme Court to allow them to hold the excess funds in reserves for future legal aid program needs. 

Furthermore, not all the collected funds were used for legal aid. Earlier this year, the FFLA board approved $1.7 million for student loan repayments for lawyers who provide legal aid through the Loan Repayment Assistance Program. The program helps lawyers at a nonprofit legal aid organization pay down school loans, with full forgiveness when lawyers meet specific requirements. 


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Bill to make flamingo, scrub-jay Florida’s state birds flies through penultimate Senate stop

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Legislation to swap Florida’s unremarkable state bird for a pair of markedly more flamboyant and unique avians zipped through its second Senate stop this week with airy praise.

The Senate Appropriations Committee on Agriculture, Environment and General Government voted unanimously for SB 880, which would jettison the state’s long-standing bird of note, the common mockingbird, and replace it twofold.

The bill would designate the American flamingo as Florida’s official state bird. And as the Sunshine State’s official songbird, the blue-and-gray Florida scrub-jay — the only species of bird endemic to Florida — would get the nod.

“Florida is a land of color, contrast and coastline, of diverse wildlife, unique ecosystems and unmatched spirit. Let me ask you, when the world thinks of Florida, do they think of a gray mockingbird or do they see a bold, bright flamingo standing tall in the sun?” said Ana Maria Rodriguez, who presented the bill Thursday on behalf of sponsor Ileana Garcia, a fellow Republican Senator from Miami-Dade County.

“We often say Florida is unlike anywhere else. Let’s prove it. The flamingo is not just an icon; it reminds us that Florida is bold, brilliant and unafraid to stand tall. The scrub-jay is not just a songbird; it is a call to protect what is rare and precious. And this bill is not just about birds; it is about identity, conservation and culture. Florida deserves to be represented by what is ours and only ours.”

SB 880 and its identical House analog (HB 81) represent the latest in a yearslong effort to replace the mockingbird, which is the state bird of four other states, as Florida’s state bird.

Before Garcia and Republican Reps. Chip LaMarca of Lighthouse Point and Jim Mooney of Islamorada took up the cause, Boca Raton Democratic Sen. Tina Polsky led the charge in several Sessions.

Jackson Oberlink, the Legislative Director of Florida for All and a self-professed “bird nerd,” said the effort is more than symbolic.

“It’s about correcting a long-standing mistake,” he said.

Students pushed to replace the mockingbird with the scrub-jay in the 1990s but encountered a disproportionately powerful foe: then-National Rifle Association Marion Hammer, who in one Palm Beach Post op-ed at the time described scrub-jays as “evil little birds that rob the nests of other birds and eat their eggs and kill their babies.”

In the same column, Hammer said that scrub-jays had a “welfare mentality” because they were known to eat food from people’s hands.

Oberlink derided Hammer’s “bizarre crusade” against the bird, whose return from the brink of extinction reflects Florida’s resilience and shows that “even in devastation, there is still hope.”

“This fight over the state bird is part of a larger pattern (of) special interests blocking progress, whether it’s gun reform, environmental protections or even something as simple as recognizing Florida’s own wildlife,” he said.

“This bill won’t stop the climate crisis or stop corporate polluters from driving it, but it does send a message: recognizing the flamingo and the Florida scrub-jay affirms our commitment to preserving what makes Florida special.”

Florida State University sophomore Olyvia Collins, a member of the student “Scrub Club” group that in 2022 convinced Seminole Commissioners to make the scrub-jay the county’s official bird, highlighted the Flamingo’s iconographic link with Florida and the scrub-jay’s natural proclivities.

“The scrub-jay represents the values of Florida — strong family bonds, cooperation, resilience. These birds live in tight-knit family groups where older siblings help raise the young and protect the nest,” she said. “Their teamwork and loyalty truly mirror the spirit of Florida, (and) recognizing both birds allows us to celebrate Florida’s diverse wildlife while honoring different aspects of its identity.”

During Thursday’s committee meeting, Winter Haven Republican Sen. Colleen Burton floated having the flamingo serve as both the state bird and songbird. Oberlink said that wasn’t a good idea, since the flamingo has “more of a goose-like honk” than a song.


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Donna Deegan, potential challengers raise big bucks ahead of 2027 Jacksonville Mayor’s race

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Jacksonville Mayor Donna Deegan’s new political committee “Duval for All” has eclipsed $200,000 in cash on hand as of the end of March, as local attention starts to turn to the 2027 election cycle.

The committee raised a relatively modest $31,250 in the first quarter of 2025 after taking in $136,000 during the final quarter of 2024. But the committee’s donor profile reveals the power of incumbency over the last two quarters, with some prominent Republican names and institutions among the contributors.

These include former Jacksonville Mayor John Peyton’s family business, Gate Petroleum ($5,000), Mori Hosseini ($10,000) and Gary Chartrand ($10,000).

Deegan’s ability to corral cross-party support helped her at the ballot box in 2023. If she’s able to secure backing from GOP donors over the next few years, she will be able to position herself well against whatever Republican competition may emerge. Her strong working relationship with former opponent Daniel Davis in his capacity at the Jacksonville Chamber of Commerce is another positive sign.

Neither Deegan nor any major potential Republican candidates have opened campaign accounts yet, but many have political committee activity.

Among those: the political committee of House Speaker Pro Tempore Wyman Duggan. He had an impressive Q1 for his associated Citizens for Building Florida’s Future committee.

That account now has more than $815,000 after a Q1 haul of $222,900.

Duggan’s strong Tallahassee ties are boosting the account. Associated Industries of Florida, Publix and Trulieve each donated $10,000 last quarter.

JAX Good Government, the political committee of City Council Vice President Kevin Carrico, also had a strong Q1, with $119,450 raised and more than $277,000 in cash on hand.

Arguably the most meaningful donation: the $25,000 from the Jacksonville Jaguars.

If Carrico jumps into the mayoral race (a big if, as he could run for re-election to the City Council), this signal of support from the Shad Khan entity could mean Deegan won’t derive maximum benefit from the stadium deal she signed off on last year.

Khan typically has backed incumbents exclusively, as he did in 2011 (Alvin Brown) and 2019 (Lenny Curry). Early indications are that he may spread the wealth this time around.

Two other City Councilmen have been linked with mayoral runs. Both of them are term-limited.

The Friends of Rory Diamond political committee raised no money in Q1, and has $68,000 on hand.

Diamond repeatedly posts to social media about Jacksonville needing a “new Mayor,” stoking speculation that he may run. He has explored runs for other offices recently, including for Congress after Mike Waltz resigned to become Donald Trump’s National Security Adviser.

The Moving Jacksonville Forward committee associated with Ron Salem also underperformed in Q1 if his goal is to run for Mayor, as he has suggested. It raised just $500 last quarter, and has nearly $89,000 in cash on hand.

There is also talk that Supervisor of Elections Jerry Holland will run for Mayor, which could make the GOP field even more crowded. He doesn’t have a political committee yet though.

Two candidates have officially filed to run, both Republicans.

Ronald Armstrong Jr., who runs a nonprofit, raised $4,225 in Q1. And Harry Daniel Long III has yet to record fundraising through nine months as a filed candidate.

Qualifying is in January 2027, so there is plenty of time for these names and others to make some moves.


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NRCC targets Jared Moskowitz, Darren Soto for votes against budget framework

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The National Republican Congressional Committee (NRCC) is launching ads targeting U.S. Reps. Jared Moskowitz and Darren Soto for votes against a proposed budget.

The digital ads show both the financial commitment to attack the Florida Democratic Congressmen and the sense that tax cuts could be a potent issue in 2026.

The ads, customized with photos of Moskowitz and Soto, both say the Democrats “voted to raise taxes.” That’s a reference to votes against a budget framework passed this week in the House with no Democratic support.

The budget looks to make tax cuts passed in President Donald Trump’s first term permanent. Without congressional support, the cuts will expire.

“Out of touch Democrat Darren Soto just screwed over the people of Florida by voting for higher taxes,” said NRCC spokesperson Maureen O’Toole. “Soto is hell-bent on pushing a radical agenda, no matter the cost to working Florida families.”

She sent out a similar statement also slamming Moskowitz.

The digital ads are part of a series targeting 25 Democrats in the sights of the NRCC, according to Fox News.

“Once again, House Democrats made their priorities crystal clear: They’re taking a wrecking ball to America’s economy and sticking the working class with higher taxes just to ram their radical agenda down the throats of all Americans,” NRCC spokesperson Mike Marinella told the national outlet.

The NRCC calculated the potential tax increases in Florida’s 9th and 23rd Congressional Districts in tax relief expires. House Republicans say CD 9 constituents represented by Soto could see taxes jump by an average of $2,175.54, while those in CD 23 could see a hike of $3,147.89.

The Standard Deduction, if the tax cuts expire, would drop from $15,000 to $8,000 for individuals and from $30,000 to $16,000 for families, impacting 91% of taxpayers. A Small Business deduction of 2% would also disappear.

The NRCC also slammed the Democrats for a vote that would let the Child Tax Credit be cut in half, though Moskowitz notably filed separate legislation this week to expand that particular tax credit.

The House budget also plans to follow through on Trump’s campaign promise to eliminate taxes on tips.

The Democratic Congressional Campaign Committee (DCCC) notably criticized the accuracy of the ads in a statement to Fox News about the national buy.

“This is what happens when the same people who want to eliminate the Department of Education write political ads,” said DCCC spokesperson Viet Shelton.

“If they actually read the bill, they would realize their budget takes away health care, cuts off food assistance, and raises costs to pay for massive tax breaks for the ultra-wealthy while sticking working families with the bill. The Republican budget is exhibit A of their failure to make life affordable for Americans.”


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