Democrats' Quiet Move Means Taxpayers Likely to Pay Letitia James' Legal Expenses Amid Criminal Probe: Report
New York Attorney General Letitia James may soon be relying on taxpayer dollars to defend herself against potential criminal charges, thanks to a controversial provision buried in the state budget approved by Albany Democrats.
According to a report by the Albany Times-Union, the FBI’s Albany field office is leading an investigation into alleged real estate and mortgage fraud involving James. At the center of the probe is her claim that a home in Virginia would be her primary residence while still serving as the Empire State’s top law enforcement officer.
The timing of the investigation comes on the heels of a $10 million legal defense fund quietly inserted into the state’s budget by New York Democrats. As the New York Post reported, the fund appears to be designed to shield James and other Democrat-aligned state officials from legal jeopardy stemming from investigations initiated under President Donald Trump’s administration.
While the budget language does not specifically name James, it broadly covers any state employee or official who retains private legal counsel in response to subpoenas, audits, or legal actions “arising out of conduct performed in their official capacity” if pursued by the federal government.
🚨🚨🚨 BREAKING NEWS: Kathy Hochul and Albany Democrats slipped language into their budget that would allow taxpayer funds to be used to defend corrupt Letitia James from the federal investigation into her alleged fraudulent real estate dealings.https://t.co/ScSZ87Q4Ug
— Elise Stefanik (@EliseStefanik) May 7, 2025
Ed Cox, Chairman of the New York Republican State Committee, slammed the provision as 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,” Cox said.
“Tish James used her office to wage partisan lawfare against her political opponents, and now New Yorkers are footing the bill for the consequences.”
Rep. Elise Stefanik (R-NY) echoed that outrage, blasting what she called a “Disgraceful Slush Fund” in a statement published on her website.
“Kathy Hochul and Albany Democrats have reached a new low in their corrupt, far-left agenda by sneaking language into the state budget that misuses hardworking New Yorkers’ tax dollars to bankroll Letitia James’ legal defense against serious allegations of mortgage fraud,” Stefanik wrote.
“Letitia James, who illegally weaponized her office to pursue politically motivated witch hunts, now expects taxpayers to foot the bill for her alleged misconduct.”
“This shameful abuse of public funds demands accountability. I call on Governor Hochul to immediately remove this provision from the budget and for an independent investigation into James’ alleged fraud.”
The New York Post editorial board also weighed in, calling the budget maneuver an insult to voters and an affront to justice.
“There is absolutely no reason for taxpayers to have to bail out James,” the editorial stated. “If she didn’t do anything wrong, as she claims, then the case should be easily dismissed. And if there is a case, well, didn’t she say that no one is above the law? That doesn’t mean no one is above legal bills.”
The board went further, warning that the bill’s language is so expansive it could shield any state worker caught in a federal probe—regardless of guilt.
“James has already established a private legal defense fund to fight possible federal charges, so it’s not even clear that she needs a taxpayer bailout here,” the Post added.
“Does James want to show New Yorkers that she really stands for them? Then she should side with taxpayers and tell lawmakers to forget about this bailout.”
As President Donald Trump’s Justice Department continues to pursue accountability for officials who weaponized their offices for partisan purposes, this case could mark a turning point in the long-overdue reckoning with the abuses of New York’s political elite.