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#news Gov. Hochul set up $10M taxpayer fund to pay for Letitia James' legal costs related to her mortgage fraud indictment #newyork New York Governor Kathy Hochul slipped in a $10 million dollar slush fund of New Yorkers’ taxpayer dollars to specifically pay for Jame's legal fees. New York Attorney General Letitia James faces federal charges for alleged mortgage fraud, just as a state budget provision quietly set aside $10 million in taxpayer dollars to cover her legal costs. Critics, including Republican lawmakers, are blasting the fund as a blatant slush fund engineered by Governor Kathy Hochul to protect her political ally from accountability. Christina Aguayo News The indictment against James, unsealed this week, stems from accusations that she falsified information on a loan application to secure favorable mortgage terms for a second home. If convicted on the charges of bank fraud and making false statements to a financial institution, James could face up to 30 years in prison per count and fines of up to $1 million each. #ChristinaAguayoNews Legal experts estimate her defense could easily run into the millions, putting the spotlight on a line item in New York's 2025 budget. Here's the breakdown: The DOJ charged James with one count of bank fraud and one count of false statements, related to misrepresentations on a mortgage application. Tucked into the state budget signed by Hochul earlier this year, the $10 million allocation covers "services and expenses relating to costs of outside legal services" for state officials facing investigations tied to their duties. While not naming James explicitly, the timing – amid growing scrutiny from the incoming Trump administration's DOJ – has fueled accusations of preemptive protection. This fund draws directly from New Yorkers' tax dollars, at a time when the state is struggling with budget deficits and residents are leaving the state because of high costs. Republicans like Rep. Elise Stefanik are saying it's a "disgraceful slush fund" The AG's office has maintained her innocence, calling the charges politically motivated. Hochul, already under fire as one of the nation's least popular governors, has defended the budget as necessary for state operations. One GOP critic saying this isn't governance – it's a taxpayer-funded bailout for those who weaponize the law against their opponents, like James' long pursuit of President Trump.