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.
New York Republican State Committee Chairman Ed Cox quickly lashed out over the move to slip a legal “bailout” to James, calling it an “outrageous abuse of power and a slap in the face to every New Yorker.”
“This is what corruption looks like in plain sight: political insiders rigging the system to protect their own, while hardworking families get shortchanged,” he said in a statement.
“Tish James used her office to wage partisan lawfare against her political opponents, and now New Yorkers are footing the bill for the consequences.”
Under New York law, current and former state employees can be reimbursed for legal fees to defend themselves against lawsuits directly related to their work while in office, such as is the case with former Gov. Andrew Cuomo — whose various scandals are estimated to have cost taxpayers $60 million and counting.
But the provision in the bill is specifically geared to benefit state employees who, as a result of their jobs, are subjected to “discriminatory or retaliatory treatment” by the federal government.
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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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” started by the feds after that date as a result of their state employment or duties.
James, who infamously declared that “no one is above the law” when she was prosecuting Trump over his business dealings, was hit with a DOJ criminal referral for instances of alleged mortgage fraud last month.
She has claimed the referral is meritless and part of a “revenge tour” initiated by the president over her bringing civil fraud charges against him.
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.
“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,” her rep said Wednesday.
The Democrat in particular has been the subject of Trump’s ire after she marshaled a civil fraud trial against him and his Trump Organization that ended with a $454 million judgment.
Federal Housing Finance Agency Director William Pulte 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.
Her high-profile attorney, Abbe David Lowell, claimed in a fiery letter to Bondi April 24 that the Trump administration “cherry-picked” information against James and called Pulte’s request for the DOJ to prosecute his client for mortgage fraud “improper political retribution.”
But he admitted she had “mistakenly” listed a Virginia home as her primary residence.
Lowell — one of Hunter Biden’s top lawyers in the scandal-scarred first son’s special counsel probe — was retained by the attorney general’s office rather than James in her personal capacity, according to a Times Union report.
