Letitia James, once celebrated as a groundbreaking Democratic leader and the first Black woman elected to statewide office in New York, now faces serious challenges ahead of the 2026 election. Once expected to cruise to reelection, James is now under federal investigation and faces a reinvigorated Republican opponent.

James rose to national prominence after winning the Attorney General seat in 2018 and leading nearly 100 lawsuits against Donald Trump and his administration. Her civil case against Trump’s business empire, which resulted in nearly $500 million in penalties, elevated her status among liberals—but that high-profile record is now under scrutiny.

In April, the Federal Housing Finance Agency referred James to the Department of Justice over alleged misrepresentations on her mortgage application. Accusations include falsely claiming a Brooklyn property as her primary residence and hiding personal ties. The FBI launched a formal investigation in May, and a GOP-aligned group filed ethics complaints.

James’s legal team insists the claims are minor clerical errors and politically motivated. They argue she’s being targeted because of her past prosecutions of powerful figures like Trump and former Governor Andrew Cuomo. Still, the probe casts doubt over her credibility just as the race tightens.

Her likely Republican challenger, Michael Henry, came close to an upset in 2022. Now, he’s gained momentum, drawing over 6,000 donors and tapping into New York’s matching funds system. His message focuses on ending partisanship and restoring balance to the Attorney General’s office.

Complicating matters, New York’s political landscape is shifting. Trump gained ground in Democratic areas in 2024, and Governor Hochul faces a primary challenge. James risks becoming collateral damage in broader Democratic infighting. With her reputation under fire, the central question isn’t just whether she can win—but whether voters still trust her to serve.