Summary: Testimony was presented on a GAO review of 1980 and 1981 efforts by the Legal Services Corporation (LSC) and the local programs it funds to ensure continued Federal funding of LSC and oppose additional restrictions on program activities. The review focused on determining whether LSC-funded programs in Texas and other States within the LSC Denver region have performed survival-related activities which violate applicable laws, regulations, and policies. Since 1980, GAO has recommended that LSC revise its regulations to specifically define the legislative restrictions on lobbying activities and types of local activities that are prohibited. However, LSC continued to broadly interpret statutory lobbying restrictions until May 1981 and did not approve more specific lobbying regulations for LSC-funded programs until 1983. During 1980 and 1981 a top LSC priority was the building of a local base of support to ensure continued Federal funding of legal services to the poor and oppose additional restrictions on LSC fund recipient activities. A GAO review of State plans and local program efforts in the Denver region to obtain support for continued funding indicated that some of these activities were grass roots lobbying activities which are prohibited by Federal law.