On December 11, 2025, a federal grand jury in Alexandria, Virginia, opted not to indict New York Attorney General Letitia James on charges of mortgage fraud, marking the second such decision within a week. This outcome follows a similar rejection by a separate grand jury in Norfolk, Virginia, and highlights the complexities surrounding legal actions involving political figures.

The allegations against James involve claims that she misled a bank to obtain favorable loan terms for a home mortgage by inaccurately classifying a property purchased in 2020 as a second home instead of an investment property. Prosecutors contended that this misclassification potentially saved her approximately $19,000 over the life of the loan due to a more advantageous mortgage rate. However, these charges were initially dismissed by a federal judge, who ruled that the prosecutor assigned to the case, Lindsey Halligan, had been unlawfully appointed.

Halligan, appointed by Attorney General Pam Bondi at the request of former President Donald Trump, had no prior prosecutorial experience and quickly initiated charges against both James and former FBI Director James Comey. The judge's ruling emphasized the importance of proper appointment procedures within the Department of Justice, a point that has drawn attention to the broader implications of political influence in legal proceedings.

James has consistently denied any wrongdoing, and her attorney, Abbe Lowell, characterized the grand jury's decision as unprecedented, suggesting it reflects the lack of merit in the charges. He raised concerns about the integrity of the Department of Justice, indicating that any further attempts to revive the charges could undermine public trust in the judicial system. The Department of Justice has defended Halligan's appointment, asserting that the executive branch holds authority over U.S. attorney appointments, further complicating the narrative surrounding this case.