New York Budget Proposal Could Allow Letitia James to Use Taxpayer Funds for Personal Legal Fees in Trump Admin Probe

Democrats’ proposed state operations budget could enable New York Attorney General Letitia James to use taxpayer funds for personal legal expenses resulting from a possible Trump administration investigation.

If passed, the state operations budget would create a $10 million fund to reimburse employees for the cost of retaining “private counsel” in response to legal actions initiated by the federal government after Jan. 1, 2025 in connection with their state employment, according to the bill text. In April, the Federal Housing Finance Agency (FHFA) referred James to the Department of Justice (DOJ) for a potential probe related to allegations of mortgage fraud involving a Virginia residence first reported by White Collar Fraud.

The FBI opened a formal investigation into the matter on Thursday, according to the Times Union.

The fund included in the proposed budget can also be used for issues “unrelated” to their employment but “reasonably likely to have been commenced” due to their work.

To determine whether a legal action against the attorney general is related to her employment, Democratic New York Gov. Kathy Hochul can consider factors like whether the attorney general has “previously initiated or otherwise participated in or supported a criminal or civil investigation or prosecution of the United States government or a United States government official,” according to the budget’s text. (Read more from “New York Budget Proposal Could Allow Letitia James to Use Taxpayer Funds for Personal Legal Fees in Trump Admin Probe” HERE)