Condemnation abounds for Governor Kathy Hochul and Albany Democrats for their outrageous efforts to include a taxpayer-funded slush fund in the New York State budget to defend Attorney General Letitia James against federal charges for fraudulent real estate deals.
“It’s bad enough that Attorney General Letitia James wants taxpayers to cover her personal legal bills—now we learn it’s Governor Hochul pulling the strings behind the scenes to make it happen. This is Albany corruption at its most brazen: a governor orchestrating a taxpayer bailout for a political ally under fire. Let’s call it what it is: ‘Letitiagate,” said New York State Conservative Party Chairman Gerry Kassar.
A budget amendment will set aside $10 million in taxpayer funds that could be used to defend James against mortgage fraud charges.
The draft language in the amendment would allow elected officials in the state to use the slush fund for their legal defense when the case is in direct response to the official's exercise of their duties.
Kassar added, “Letitia James built her brand on hounding political enemies with lawsuits—now she wants the same public she claims to protect to pay her lawyers when the heat’s on her. And Kathy Hochul? She isn’t just looking the other way—she’s enabling it. She’s complicit.
James is not explicitly mentioned in the amendment, but there is little doubt this is aimed at helping her. James’ attorney, Abbe Lowell, has made claims that the charges against James are political retribution against her by President Trump. Such a claim could be used to backdoor James into the slush fund claiming there is a link to her official duties.
Election law expert and partner at Holtzman Vogel, Joe Burns said, “This fund will allow public officials to use public money to defend themselves for alleged private wrongdoing. I think you’re going to hear a lot of people arguing that this is nothing more than a gift, and the state constitution prohibits state government from providing gifts.”
Potential candidate for NY Governor, House Republican Leadership Chair Elise Stefanik (R-NY), said “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. 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.”
“New Yorkers are crushed by skyrocketing crime, a mass exodus from our state, and a cost-of-living crisis fueled by Hochul’s failed policies. Instead of addressing these urgent issues, Albany Democrats are doubling down on shielding their corrupt allies,” said Stefanik.
Kassar concluded. “The Conservative Party is calling this what it is: a shameless abuse of power and public trust. Governor Hochul and Attorney General James owe the people of this state an apology—and a $10 million check.”
Stefanik called on Hochul to immediately remove this provision from the budget and for an independent investigation into James’ alleged fraud.