Taxpayers could be on the hook for legal bills New York Attorney General Letitia James racks up during Justice Department probes into her alleged fraudulent real estate dealings, The Post has learned.
New York’s operations budget bill includes specific language that indicates certain state officials could tap into a $10 million fund to cover “any reasonable attorneys’ fees and expenses incurred” as part of a Trump administration-led probe tied to their state-based employment.
Multiple sources told The Post that the language in the bill, which will be made public later Wednesday, would apply to James’ looming legal fight.
It would also cover other state employees that the Trump administration considers going after, the sources added.
While the bill language shared with The Post doesn’t mention James by name, the relevant section indicates state employees could be covered if the “legally compulsive process” was initiated by the US government after Jan. 1, 2025.
James, who infamously declared that “no one is above the law” when she was prosecuting President Trump, was hit with a DOJ criminal referral for instances of alleged mortgage fraud last month.
The bill would cover those 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 initiated after January 1, 2025 by the United States government and in which the employee was or is involved as a result of the employee’s New York State employment or duties.”
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James is apparently planning to rely on both state funds and a private legal defense fund.
“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 spokesman for the AG’s office said Wednesday.
It comes after the Democrats’ lawyer last month urged the DOJ to refuse a Trump administration official’s request to prosecute James for mortgage fraud, calling it “improper political retribution.”
Federal Housing Finance Agency Director William Pulte had sent a letter to US Attorney General Pam Bondi on April 14 asking her to investigate and consider prosecuting James, alleging she “falsified bank documents and property records.”
He alleged James falsely listed a home in Virginia as her principal residence.
Records show that James was listed as a co-borrower on a house being purchased by her niece.