New York Attorney General Letitia James was last month referred to the Trump administration's Department of Justice (DOJ), as she's been accused of falsifying records to obtain home loans. Now, it looks like she'll have a helping hand from her fellow New Yorkers, thanks to Democratic Gov. Kathy Hochul and the state legislature.
State Democrats have been working on a potential slush fund plan that would allow James to benefit, with taxpayers footing the bill for her legal expenses, as the New York Post covered. The Attorney General's office also has noted that she does plan to rely in part on state funds:
Taxpayers could be on the hook for New York Attorney General Letitia James’ legal bills during Justice Department probes into her alleged fraudulent real estate dealings, The Post has learned.
Albany Democrats are expected to sign off on a provision allowing certain officials to tap into a $10 million fund to cover “any reasonable attorneys’ fees and expenses incurred” — even as part of probes not directly related to their state employment.
The language is being slipped into New York’s operations budget bill — one of several expected to be made public and voted on starting Wednesday as the Legislature moves to pass next year’s fiscal plan.
Multiple sources told The Post that the specific language in the bill would apply to James’ looming legal fight.
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While the bill language shared with The Post doesn’t mention James by name, it indicates state employees could be covered if the “legally compulsive process” was initiated by the feds “after Jan. 1, 2025,” meaning following President Trump’s election.
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James plans to rely on both state funds and a private legal defense fund to fight the battle, a spokesman for the AG’s Office confirmed.
The move was quickly lambasted by Rep. Elise Stefanik (R-NY), who may run next year to challenge Hochul, with the particularly unpopular governor being up for reelection in 2026.
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She shared the New York Post article multiple times from her political X account.
🚨🚨🚨KATHY HOCHUL NY DEMOCRAT CORRUPTION ALERT 🚨🚨🚨 https://t.co/31NEcte0tO
— Elise Stefanik (@EliseStefanik) May 7, 2025
🚨🚨🚨 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
In addition to posting her outrage over X, specifically towards Hochul, Stefanik issued a statement. That statement mentioned considerable issues with the governor, and not merely when it comes to defending James:
“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. This disgraceful slush fund epitomizes the cesspool of corruption in Albany, where Democrat elites prioritize protecting their own over the needs of New York families.
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.
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. New Yorkers deserve transparency, not taxpayer-funded cover-ups. As a proud representative of Upstate New York, I will continue to fight against the corrupt one-party rule in Albany and stand up for the hardworking families who are fed up with this blatant betrayal of public trust.”
Stefanik also reposted a statement from NYGOP Chairman Ed Cox. The statement emphasized the "corruption" and "outrageous abuse of power" involved with this "slush found."
"The fact that Attorney General Letitia James is getting a $10 million taxpayer-funded bailout to cover her personal legal fees is an outrageous abuse of power and a slap in the face to every New Yorker struggling under the weight of inflation, high taxes and crumbling public services. This is what corruption looks like in plain sight: political insiders rigging the system to protect their own, while hardworking families get shortchanged. Tish James used her office to wage partisan lawfare against her political opponents, and now New Yorkers are footing the bill for the consequences," Cox said in his statement. "There is no justification for forcing taxpayers to bankroll the personal legal problems of the state’s top law enforcement officer. This is a direct betrayal of public trust, and it shows just how far Democrats in Albany will go to protect their power and their allies," he added, as he also went on to further call out Democrats. "Every Democrat who remains silent is complicit in this disgraceful misuse of public funds," Cox's statement concluded.
Late last month, it was reported that James hired Abbe Lowell, a prolific attorney who has defended other big Democrat names, such as Hunter Biden, when he was then the first son during the Biden-Harris administration.
🚨🚨🚨CORRUPTION ALERT:
— New York GOP (@NewYorkGOP) May 7, 2025
Democrats are siphoning $10 million of taxpayer money to cover corrupt AG Tish James' legal fees.
It's an outrageous abuse of power and a slap in the face to New Yorkers.
Full statement from @ChairmanEdCox: pic.twitter.com/fcSul5eYea
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