Taxpayers may end up paying the huge cost of New York Attorney General Letitia James’s legal defense as she faces a federal investigation for fraud.
James may be eligible to use tax dollars to cover legal expenses stemming from a federal investigation into alleged fraudulent real estate activity.
The New York AG may be planning to tap into taxpayer funds, according to language contained in the state’s newly unveiled operations budget bill.
The bill includes a provision establishing a $10 million fund intended to pay for “reasonable attorneys’ fees and expenses” for certain state officials involved.
The “expenses” can be covered with taxpayer money in federal legal actions initiated after January 1, 2025, the bill notes.
While not naming James directly, the language is reportedly broad enough to encompass her case.
It would also cover other New York state officials currently under scrutiny by President Donald Trump’s administration.
Multiple sources familiar with the bill confirmed to The Post that the language was inserted with James’ situation in mind.
James is currently facing a criminal referral to the Department of Justice (DOJ) over allegations of mortgage fraud.
The referral was made in April by Federal Housing Finance Agency Director William