New York Attorney General Letitia James is facing mounting financial challenges as she prepares to defend herself against a federal indictment alleging involvement in a 2020 mortgage fraud scheme.
Legal experts estimate that James’s defense could cost between $5 million and $10 million. Despite having access to a $10 million state fund established to assist high-profile officials with legal expenses, her office has confirmed that she will not use those resources.
Instead, James has opted to rely on the Democratic Attorneys General Association (DAGA) to help cover her legal costs.
The decision has prompted questions about transparency, as DAGA’s defense fund is not fully subject to public disclosure, and the organization retains discretion over how donations are allocated.
Critics argue that James’s decision to rely on outside funding could allow her to raise millions of dollars from donors without sufficient public oversight.
Legal experts have also highlighted the potential scope of her defense costs. Abbe Lowell, the prominent attorney representing James, reportedly charges more than $1,000 per hour and requires a $1 million retainer.
Former federal prosecutor Neama Rahmani told the New York Post that James’s total legal expenses could ultimately reach as much as $10 million.
“I think all in, it’s probably going to be in the range of $5 to $10 million,” she told the outlet.
However, some legal analysts noted that given the case’s prominence and the political implications involved, certain attorneys might agree to represent James pro bono. They suggested that some left-leaning lawyers may see the case as an opportunity to defend a high-profile Democrat facing federal prosecution.
“I think a lot of amazing attorneys would be happy to step up and do this for free,” former prosecutor Duncan Levin told The Post.
A spokesperson for James’s office told The New York Post on Friday that she will not use the state’s $10 million legal defense fund to cover her legal expenses, reversing an earlier indication that she planned to do so.
The state comptroller’s office confirmed that none of the allocated funds have been used, The Post noted.
The fund’s creation — first reported by the outlet — was quietly included in this year’s state budget by Governor Kathy Hochul and Democratic lawmakers in Albany. Republican legislators strongly opposed the measure before it was approved by the Democratic-controlled legislature.
James has denied all charges related to the federal mortgage fraud indictment and claims she is being targeted for political reasons by President Donald Trump.
James is scheduled to make her first appearance in federal court in Virginia on October 24.
The state attorney general, who is seeking re-election next year, endorsed Governor Kathy Hochul’s campaign over the summer, signaling she will not challenge the incumbent in a Democratic primary — a move that marks a departure from her brief bid against Hochul during the 2022 gubernatorial race, said The Post.
The Democratic Attorneys General Association (DAGA), a well-funded group of Democratic state attorneys general, announced late last month the creation of a legal defense fund that officials such as Letitia James could access.
Details about the fund’s contributors and its total balance have not been made public, leaving questions about who is financing the effort and how much money is available for James’s defense.
The donation website for the initiative suggests the legal defense fund operates within DAGA itself rather than as a separate entity, further fueling transparency concerns.
“Contributions will be used at DAGA’s sole discretion to support its programs and activities. DAGA may use all or part of a contributor’s funds, and disclose them as necessary, in states of its choosing,” said the organization on its website, per The Post.
“Contributions to DAGA Legal Defense Fund will be used at the sole discretion of DAGA to support programs and activities related to legal efforts that promote democracy.”