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A second grand jury has declined to re-indict New York Attorney General Letitia James, marking another significant setback for the Justice Department as it attempts to revive criminal cases targeting several of President Donald Trump’s political adversaries.
The decision, confirmed by two people familiar with the matter who spoke on condition of anonymity, came Thursday after prosecutors again presented evidence in Alexandria, Virginia. It followed a separate grand jury’s refusal last week in Norfolk to return charges against James, who has long been a prominent target of Trump’s criticism.
Grand jury rejections — already rare in federal cases — have now happened twice in the span of two weeks, raising questions about the DOJ’s strategy and public receptiveness to politically charged prosecutions. The failures underline the challenge prosecutors face as they seek to refile cases originally dismissed in November.
Those indictments against James and former FBI Director James Comey were thrown out after a judge ruled that Lindsey Halligan, the former Trump attorney appointed acting U.S. attorney in the Eastern District of Virginia, had been installed through an unlawful process.
Prosecutors have not said whether they will attempt a third presentment. One person familiar with the matter said the department “stands behind the charges” and is still weighing its options.
James’ defense team said Thursday’s outcome should end the matter for good. “This unprecedented rejection makes even clearer that this case should never have seen the light of day,” attorney Abbe Lowell said in a statement. He argued the failed efforts have “been a stain on this Department’s reputation” and that attempting to revive them again “would be a mockery of our system of justice.”
James, a Democrat, was initially charged with bank fraud and making false statements related to a 2020 home purchase. Prosecutors alleged she received favorable loan terms by signing a “second home rider” while renting the property to another family, a move they said turned the deal into an undisclosed investment arrangement.
The criminal charges were brought shortly after the Trump administration installed Halligan — who had no prior prosecutorial experience — amid vocal public pressure from Trump to pursue his political critics. Halligan replaced longtime federal prosecutor Erik Siebert, who resigned after resisting those demands.
The administration has since moved forward with Halligan’s formal nomination to lead the office, but her confirmation faces significant obstacles in the Senate.
The separate case against Comey, who was charged with lying to Congress in 2020, has also stalled. A federal judge has temporarily blocked prosecutors from accessing computer files belonging to Columbia Law School professor Daniel Richman, a longtime Comey associate. Prosecutors say the files are central to building any renewed case and argued this week that the judge’s ruling “overstepped her bounds” and is hindering the investigation.
The DOJ has asked the court to reverse that order as it weighs how — or whether — to proceed with the politically sensitive prosecutions.
