New York Attorney General Letitia James is under substantial financial and political strain as she prepares to defend herself against a federal indictment alleging mortgage fraud, stemming from a 2020 property purchase. Legal observers estimate her defense costs could range from $5 million to $10 million. Though New York created a $10 million state fund to assist public officials with legal fees, James has affirmed she will not tap it. Instead, she is turning to the Democratic Attorneys General Association (DAGA) for financial support. Critics have raised concerns about transparency, noting that DAGA’s legal defense fund is not fully subject to public disclosure—allowing for potentially large, opaque contributions and decisions.

James’s legal team is headed by high-profile attorney Abbe Lowell, who reportedly commands rates exceeding $1,000 per hour and required a $1 million retainer. Some analysts believe prominent Democratic lawyers may partly defend her pro bono due to the political stakes. In a reversal of her earlier plan, James confirmed she will not use the state legal defense fund, despite it being quietly inserted into the state budget by Governor Hochul and Democratic legislators over Republican objections. According to the state comptroller, none of those funds have been tapped to date.

James has denied all wrongdoing and characterized the indictment as political retaliation from former President Trump. She is scheduled to appear in federal court in Virginia on October 24. Her choice not to challenge Governor Hochul in the next election underscores how deeply intertwined the legal challenge and her political future have become.