Overview

• The New York state budget includes a provision allocating $10 million for legal fees of state officials facing federal investigations tied to their official duties.
• The draft language does not name Attorney General Letitia James but would apply to her defense against fraud allegations referred by the Federal Housing Finance Agency.
• James has denied wrongdoing in the mortgage fraud probe and plans to use both private and state funds for her legal defense.
• Republican leaders, including New York GOP Chair Ed Cox, have condemned the measure as a misuse of taxpayer money and an example of political corruption.
• The state legislature is set to vote on the budget provision Wednesday evening, with the proposal sparking debate over ethics and accountability.