The Libertarian Party of New York is urging Governor Kathy Hochul to reject using taxpayer funding for Attorney General Letitia James’s legal defense, following her indictment by a federal grand jury. The party is also calling on the state Legislature to repeal the budget provision that allows for it.
In an October 10 statement, the Libertarian Party of New York condemned a provision in the 2025 state budget permitting the diversion of up to ten million dollars in taxpayer funds toward private legal defenses for select state officials. Section 702 expands the scope of indemnification beyond what is permitted under Sections 17 and 19 of the Public Officers Law, granting the Governor and Attorney General discretionary authority to approve legal funding for matters outside the scope of official duties
The party dismissed the fund as “a betrayal of fiscal responsibility and the principle that individuals, including those in public office, must bear the consequences of their own actions.” It contended that the measure opens the door to taxpayer-funded protection for misconduct.
“In a free society, government exists to protect individual rights, not to shield politicians from the consequences of their personal misconduct,” it argued. “This provision exemplifies cronyism, using the state’s coercive power to socialize the costs of elite misbehavior while preserving the benefits of power for the few.”
The statement was issued after news broke on October 9 that New York Attorney General Letitia James had been indicted by a federal grand jury in Virginia on charges of bank fraud and making false statements to a financial institution. Prosecutors allege that James misrepresented a Norfolk, Virginia property as her primary residence to secure favorable loan terms and later rented it out for profit.
The Libertarian Party of New York contended that the allegations are unrelated to James’s official duties, describing them as “personal matters that any ordinary citizen would face in court without public funds.” It called on Hochul to publicly commit to not using these funds for her case and urged the State Legislature to repeal Section 702 before it could enable “further abuse.”
“Will Governor Hochul use this $10 million fund to bankroll James’s defense?” the party asked. “New Yorkers deserve a clear answer. If she does, it will confirm the Libertarian Party’s longstanding warning that the political class views taxpayers as a resource to exploit for their own preservation.”
As of this article, Hochul has not indicated whether she intends to use Section 702 funds to cover James’s legal defense. James is scheduled to appear in court on October 24 for her arraignment in the Eastern District of Virginia.
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