New York Attorney General Letitia James is facing significant financial and political pressure as she prepares to defend herself against a federal indictment related to an alleged 2020 mortgage fraud scheme. Legal experts estimate that her defense could cost between $5 million and $10 million. Although a $10 million state fund was created to assist public officials with legal costs, James has confirmed that she will not use it to cover her expenses.

Instead, James is turning to the Democratic Attorneys General Association (DAGA) for financial support. This decision has sparked concerns about transparency, as DAGA’s legal defense fund is not fully subject to public disclosure. The organization maintains complete discretion over how donations are collected, used, and distributed, raising questions about potential influence and oversight.

Critics argue that relying on an outside organization could allow James to receive millions in support without sufficient public scrutiny. Her legal team is led by high-profile attorney Abbe Lowell, who reportedly charges more than $1,000 per hour and requires a $1 million retainer. However, some legal analysts suggest that the political implications of the case might motivate prominent Democratic lawyers to represent her pro bono.

A spokesperson for James confirmed she reversed her initial plan to access the state’s legal defense fund. The fund was quietly inserted into the state budget by Governor Kathy Hochul and Democratic legislators, despite strong Republican opposition. According to the state comptroller’s office, none of the funds have been used to date.

James has denied all charges, asserting that she is being politically targeted by former President Donald Trump. She is scheduled to appear in federal court in Virginia on October 24. Her recent decision not to challenge Governor Hochul for re-election reflects the high political stakes surrounding the case and her current legal battle.