New York’s Democrat attorney general, Letitia James, in a re-election fight now in which her little-known GOP challenger is gaining ground, has lost another fight in the courts with President Donald Trump.
She had campaigned for office on the premise that she would “get” him, even though she held no evidence of wrongdoing. She later assembled a series of allegations about his business operations and from an local judge known for his anti-Trump ideologies obtained a judgment of nearly half a billion dollars, only to see that punishment tossed by an appeals court as unconstitutional.
Now a report at Fox News explains Judge Jeannette Vargas has dismissed the case James assembled over Trump’s budget-cutting DOGE program.
When Trump set up that operation to eliminate fraud and corruption in the nation’s spending, he directed that the Treasury Department give those workers access to Bureau of the Fiscal Service systems, which handle federal payments and contain sensitive financial information.
James recruited officials from more than a dozen states and sued.
Letitia James’ latest Trump legal battle has ended in federal court.
Biden-appointed Judge Jeannette Vargas dismissed claims over DOGE-linked access to sensitive Treasury systems as moot after the Treasury DOGE team was disbanded.
James led New York and 18 other states in… pic.twitter.com/ygX18cAIc5
— Fox News Politics (@foxnewspolitics) September 24, 2026
“In February 2025, Vargas granted the states a preliminary injunction barring Treasury’s DOGE team from the covered payment systems, then modified the order” allowing access with restrictions.
Only 19 months later has the injunction been completely lifted https://t.co/f2Q2lJYzHH
— John R Lott Jr. (@JohnRLottJr) September 24, 2026
Now Vargas has said the “plaintiffs’ claims related to access by DOGE-affiliated employees to sensitive Treasury information are dismissed as moot.”
Since the DOGE work official has concluded, and no DOGE workers remain at Treasury, there is nothing for the court to halt.
“She separately dismissed the states’ claims over an automated payment-review system, finding they had not alleged that the process froze or canceled any specific federal payment due to them,” the report said.
Those claims were that the president opened “sensitive” systems and put state financial information at risk.
She’s built her career around the single goal of attacking Trump, and her civil fraud lawsuit against him focused on his business practices.
During the trial, those who had lent Trump and his businesses funds testified they were repaid in full and on time and they would like to do further business with him.
She claimed fraud by the corporation’s assignment of values to properties.
The resulting $450 million judgment against Trump was voided on appeal.
Interestingly, James herself later was indicted for fraud following allegations she misrepresented her property in Virginia “to secure more favorable loan terms.”
She pleaded not guilty and the charges later were dismissed so the case did not go to trial yet.
