New York Gov. Kathy Hochul and Democrats in Albany have "reached a new low" for including money for a legal fund to defend Attorney General Letitia James against a federal investigation into allegations of mortgage fraud against her, Rep. Elise Stefanik said Wednesday.
"Kathy Hochul and Albany Democrats have reached a new low in their corrupt, far-left agenda by sneaking language into the state budget that misuses hardworking New Yorkers’ tax dollars to bankroll Letitia James’ legal defense against serious allegations of mortgage fraud," the New York Republican and House Leadership chairperson said in a statement to Newsmax.
"This disgraceful slush fund epitomizes the cesspool of corruption in Albany, where Democrat elites prioritize protecting their own over the needs of New York families," she added.
Earlier Wednesday, The New York Post reported that the state's operations budget bill includes language indicating that state officials could tap into a $10 million fund intended to cover "any reasonable attorneys’ fees and expenses incurred" in the event of a Trump administration investigation tied to their employment with the state.
Several sources told the newspaper that the bill's language applies to James' looming legal battle against the administration, which is investigating her on claims of mortgage fraud.
"This disgraceful slush fund epitomizes the cesspool of corruption in Albany, where Democrat elites prioritize protecting their own over the needs of New York families," said Stefanik.
"Letitia James, who illegally weaponized her office to pursue politically motivated witch hunts, now expects taxpayers to foot the bill for her alleged misconduct," she added.
The proposed bill language doesn't mention James by name but states that state employees could be covered if legal action had been initiated by the U.S. government after Jan. 1 of this year.
James, while she prosecuted President Donald Trump, stated that "no one is above the law," and received a Department of Justice criminal referral last month on the mortgage fraud allegations.
A spokesperson from her office confirmed that she plans to use both state funds and a private legal defense fund to fight the case.
"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," the representative said.
Stefanik argued that rather than addressing urgent issues such as crime and a "cost of living crisis fueled by Hochul's failed policies," state Democrats are "doubling down on shielding their corrupt allies."
She called on Hochul to "immediately remove this provision" from the budget and to launch an independent investigation into the allegations of fraud against James.
"New Yorkers deserve transparency, not taxpayer-funded cover-ups," she said. "As a proud representative of Upstate New York, I will continue to fight against the corrupt one-party rule in Albany and stand up for the hardworking families who are fed up with this blatant betrayal of public trust."