New York Attorney General Letitia James could have her legal expenses covered by taxpayers in connection with ongoing federal investigations into alleged real estate fraud, according to information obtained by The Post.
State legislators in Albany, led by Democrats, are preparing to approve a budget measure that would allow certain public officials to access up to $10 million for legal defense costs — even when the investigations are unrelated to their official duties.
This provision is included in New York’s operations budget bill, which is one of several being finalized and voted on as part of the upcoming fiscal year’s financial plan.
Sources familiar with the measure say the language specifically applies to James and her expected legal battles.
Ed Cox, chair of the New York Republican State Committee, strongly criticized the move, calling it “an outrageous abuse of power and a slap in the face to every New Yorker.”
“This is what corruption looks like in plain sight: political insiders rigging the system to protect their own, while hardworking families get shortchanged,” he said in a public statement.
“Tish James used her office to wage partisan lawfare against her political opponents, and now New Yorkers are footing the bill for the consequences.”
New York law already allows state officials to be reimbursed for legal fees arising from lawsuits directly tied to their governmental roles — a precedent seen in former Governor Andrew Cuomo’s legal controversies, which reportedly cost the state around $60 million.
However, the new budget clause targets situations where state employees may face federal scrutiny as a result of “discriminatory or retaliatory treatment” related to their state roles.
While the draft legislation does not name James specifically, it does outline protections for employees subjected to federal legal processes initiated “after Jan. 1, 2025” — a timeline that would begin under a second Trump administration, if he were to return to office.
The proposal would cover legal expenses for employees who hire private attorneys in response to subpoenas, interviews, document demands, audits, or other federal actions that stem from their state duties.
James is currently facing a Department of Justice referral alleging mortgage fraud — a move she has characterized as politically motivated retaliation for her civil fraud lawsuit against former President Trump.
“Donald Trump promised a vicious revenge tour when he ran in 2024, and he’s put Attorney General James at the top of his list, and we’re ready to respond to these attacks,” a spokesperson for the AG’s office said on Wednesday.
James previously made headlines for saying “no one is above the law” during her prosecution of Trump, which led to a $454 million civil judgment against him and the Trump Organization.
More recently, Federal Housing Finance Agency Director William Pulte urged U.S. Attorney General Pam Bondi to investigate James, accusing her of submitting false information on mortgage applications and property records. Specifically, Pulte alleged that James misrepresented a property in Virginia as her primary residence.
Public records show James was listed as a co-borrower on a home purchased by her niece. Her attorney, Abbe David Lowell, responded in a letter to Bondi on April 24, criticizing the referral as politically motivated and noting that James had “mistakenly” listed the Virginia residence as her primary home.
Lowell, who is also known for representing Hunter Biden, was reportedly hired through the attorney general’s office itself, not by James personally, according to Times Union.