New York state taxpayers could be on the hook for New York Attorney General Letitia James’s legal defense if the investigation against her leads to criminal charges, according to a new report.
The Albany Times-Union reported that the FBI office in Albany is leading an investigation into real estate and mortgage activities that included James claiming a Virginia home would be her primary residence while she was serving as New York’s attorney general.
Word of the investigation came shortly after leaks revealed that the state budget being approved by the Democrat-dominated state Legislature includes a $10 million legal defense fund for state officials who face charges from the Trump administration, according to the New York Post.
The bill is not specific to James. It covers state officials who “obtained representation by private counsel in response to any request, summons, command, subpoena, warrant, investigative interview or document request, audit or legally compulsive process” started by the Trump administration as a result of their work for the state.
🚨🚨🚨 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
New York Republican State Committee Chairman Ed Cox said the fund represents 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 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,” he said.
Republican Rep. Elise Stefanik of New York also lambasted what she called “Democrats’ Disgraceful Slush Fund” in a statement posted 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. Meanwhile, New Yorkers are crushed by skyrocketing crime, a mass exodus from our state, and a cost-of-living crisis fueled by Hochul’s failed policies. Instead of addressing these urgent issues, Albany Democrats are doubling down on shielding their corrupt allies,” she wrote.
“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,” Stefanik wrote.
In an editorial, the New York Post editorial board said the fund was wrong on many levels.
“There is absolutely no reason for taxpayers to have to bail out James. 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 editorial said.
“Bailing out James isn’t just offensive on its own. The bill is so broad that it would cover just about any federal investigation of anyone who cashes a state paycheck,” the Post wrote.
“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 noted.
“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,” the editorial said.
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