Language in a new budget bill up for a vote later Wednesday evening could put New York taxpayers on the hook for state Attorney General Letitia James’ legal fees in a fraud case being brought against her by the Trump administration.
Democratic New York Gov. Kathy Hochul issued her proposed $254 billion budget last week, and the state legislature is set to begin voting on it as soon as Wednesday. Part of what state legislators will be voting on includes the state operations section of the budget.
That section, according to a draft copy provided to Fox News Digital by the state Republican Party, includes draft language which – if approved – would compel taxpayers to provide the money for a legal defense fund that, while James is not named in the bill, would theoretically cover the New York attorney general’s legal costs pertaining to fraud allegations brought against her by the Trump administration’s Federal Housing Finance Agency.
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The draft language, compiled by the Democrat-controlled executive branch, Senate majority and Assembly majority, would set aside $10 million for elected officials in the state to use for their legal defense when the case is in direct response to the official’s exercise of their duties.
James’ attorney, Abbe Lowell, who was obtained for her by the New York State Attorney General’s Office, characterized the Trump administration’s mortgage fraud claims against James as “political retribution” for her decision to go after Donald Trump over allegations he falsified business documents to obtain favorable business positions.
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According to the draft language of the New York operations budget bill, a state official would be permitted to use money from the legal defense fund if the official has previously had interactions with the U.S. government or a U.S. government official in the course of their official duties. There are additional criteria which would also apply to James, particularly when considering her former case brought against Trump that led to the first ever felony conviction of a U.S. president.
The sources who provided the operations budget draft language said it should be made publicly available some time Wednesday.
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“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 spokesperson for James told Fox News Digital on Wednesday. The spokesperson added that James plans to use both private and public state funds to mount her defense.
Meanwhile, New York GOP Chair Ed Cox told the New York Post that “this is what corruption looks like.”
“Political insiders rigging the system to protect their own, while hardworking families get shortchanged,” Cox accused in a statement to the New York Post. “Tish James used her office to wage partisan lawfare against her political opponents, and now New Yorkers are footing the bill for the consequences.”
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