A federal grand jury in Virginia declined to indict New York Attorney General Letitia James on allegations of mortgage fraud for the second time, sources say. This follows the earlier dismissal of charges by a judge last month.

The decision serves as a significant setback to the Justice Department under President Donald Trump's administration, which has been actively pursuing individuals considered to be political adversaries of the Republican leader. Last month, U.S. District Judge Cameron McGowan Currie dismissed charges against James, criticizing the unlawful appointment of Trump ally Lindsey Halligan as the interim U.S. Attorney for Virginia's Eastern District.

Thursday's outcome underscores the ongoing refusal of grand juries to support prosecutions perceived as politically motivate

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