Legal Aid Grant Act

Legal Aid Act of 1995 - Revises the Legal Services Corporation Act to replace the Legal Services Corporation with a program of block grants to the States and to rename the Act the Legal Aid Grant Act.

Defines a "qualified client" of a legal services provider as any individual who is a U.S. citizen or an alien admitted for permanent residence who, in the three months prior to seeking legal assistance, had an income equal to or less than the poverty line. Defines a "qualified cause of action" for such a provider to mean only a civil cause of action resulting from specified types of cases, including cases involving: (1) landlord and tenant disputes; (2) statutory benefits; (3) child custody and support; (4) debt enforcement; (5) divorce or separation; and (6) consumer fraud.

Requires the Attorney General to direct the Office of Justice Programs to make grants to States for the provision of qualified legal services and to ensure compliance with the requirements of the Act. Specifies that grants shall be made in such proportion as the number of residents of each State which receive a grant who live in households having income equal to or less than the poverty line established under the Community Services Block Grant Act bears to the total number of U.S. residents living in such households. Authorizes each State to retain for administrative costs not more than five percent of the amount granted to the State under this Act in a fiscal year, with the remainder paid under contracts to qualified legal service providers in the State. Bars a State from receiving such a grant unless the State has certified to the Attorney General that the State will comply with and enforce the requirements of this Act.

Prohibits the use of grant funds by legal service providers for specified purposes, including: (1) making available funds, personnel, or equipment for certain activities relating to reapportioning a legislative, judicial, or elective district, including influencing the timing or manner of taking a census; (2) attempting to influence the issuance, amendment, or revocation of an executive order, regulation, or policy by a Federal, State, or local agency, or the passage or defeat of any legislation, constitutional amendment, referendum, or confirmation proceeding; (3) supporting or conducting training programs for the purpose of encouraging political activities, boycotts, strikes, and demonstrations; (4) participating in litigation, lobbying, or rulemaking regarding abortion, or any litigation or representation on behalf of a prisoner; (5) paying for any personal service, advertisement, written matter, or administrative expenses associated with prohibited activities; (6) soliciting in-person any client for the purpose of providing any legal service; or (7) paying voluntary membership dues to any private or nonprofit organization.

Sets forth provisions regarding: (1) limits on the use of State funds; (2) attorney's fees; and (3) attempts to evade the requirements of the Act. Authorizes appropriations for FY 1996 through 1999.

Sets forth requirements regarding State contracting for legal services. Directs a State to award a contract for the provision of qualified legal services in a service area to the best qualified applicant (as determined by the State) which, in its bid, offers to provide the greatest number of hours of such services by lawyers or paralegals, considering: (1) the reputations of the principals of the applicant; (2) the quality, feasibility, and cost effectiveness of plans submitted by the applicant for the delivery of qualified legal services to the qualified clients to be served; and (3) a demonstration of willingness to abide by the restrictions of this Act.

Requires a qualified legal service provider to maintain a qualified client's case file for at least the later of five years after the resolution of the cause of action or the termination of the contract under which services were provided to such client, or as provided by the applicable code of professional responsibility.

Sets forth provisions regarding: (1) attorney-client privilege, including limits on the use and effect of waivers; (2) audits; (3) recovery of reasonable attorney's fees (in successful actions); and (4) termination and recovery of funds.