NY Attorney General Letitia James Files New Lawsuit Against Trump Administration Amid Federal Scrutiny
New York Attorney General Letitia James has launched another legal battle against the Trump administration as she faces a federal investigation into potential misconduct involving her own real estate dealings.
Speaking at a National Action Network event in Harlem, James declared her intent to take legal action against the Department of Health and Human Services (HHS), according to the New York Post. “The White House is threatening our way of life in so many ways, and I just want you to know that in the coming days we will be filing a lawsuit against” HHS, she told the crowd.
James pointed to anticipated reductions in federal support for programs like Head Start, which aids low-income children under six, Meals on Wheels, and healthcare initiatives for 9/11 first responders through the World Trade Center Health Program.
“All of these funds and more!” she exclaimed. “We got to stand up, and that’s why Democratic attorneys general will be joining me in filing this lawsuit in the coming days.”
This legal move comes as James continues to be a prominent figure in the civil case against Donald Trump and the Trump Organization. Her efforts in that case led to a $454 million judgment—currently being appealed—that has drawn harsh criticism from the former president.
During her remarks, James also criticized HHS Secretary Robert F. Kennedy Jr. for his focus on exploring new treatments for measles amid an outbreak, arguing that he should instead prioritize vaccinations. She then mocked Kennedy, referring to him as “the guy with a worm in his head”—a jab referencing his 2012 deposition in which he claimed a worm had eaten part of his brain before dying inside his skull.
Ironically, James herself is now under legal scrutiny. Last month, the Trump administration referred her for possible federal prosecution over alleged mortgage fraud—the same crime she pursued Trump for in her civil case.
Federal Housing Finance Agency (FHFA) Director William Pulte sent a letter to Florida Attorney General Pam Bondi and Deputy AG Todd Blanche, alleging that James “falsified records” to obtain home loans. According to the letter, she listed a property in Norfolk, Virginia, as her “principal residence” in 2023 while still holding office in New York, which legally requires her to live in-state.
“Ms. James was the sitting Attorney General of New York and is required by law to have her primary residence in the state of New York — even though her mortgage applications list her intent to have the Norfolk, VA, property as her primary home,” the letter explained.
The letter also suggests James may have misrepresented the Virginia property in order to secure a better interest rate and loan conditions.
Additionally, James purchased a five-unit residential building in Brooklyn back in 2001. According to the letter, she repeatedly described the building as having only four units on official documents and mortgage applications, which may have helped her qualify for reduced mortgage rates.
Pulte’s letter also includes documentation of a separate property transaction in which James and her father were listed as “husband and wife” on official records in 1983 and 2000—a mischaracterization that raises concerns, even if dated.
“While this was a long time ago, it raises serious concerns about the validity of Ms. James’ representations on mortgage applications,” Pulte noted.
The allegations mirror earlier reporting from White Collar Fraud, which claimed James had misrepresented her residence in Virginia and downplayed the size of her Brooklyn property to gain more favorable mortgage terms. According to Pulte, listing the Brooklyn property as a four-unit dwelling may have helped her reduce her interest rate by up to 1% under the federal Home Affordable Modification Program.
“Ms. James, for both properties listed above, appears to have falsified records in order to meet certain lending requirements and receive favorable loan terms,” Pulte concluded in his letter to Bondi and Blanche.