WASHINGTON — A grand jury failed for a second time to re-indict New York Attorney General Letitia James for alleged mortgage fraud on Thursday after her initial charges were thrown out by a judge, sources familiar with the proceeding told The Post.

A new federal jury convened in Alexandria, Va., but declined to charge James with fraud related to a property she’s owned in Norfolk since 2020, dealing prosecutors another setback.

“For the second time in seven days, the Department of Justice has failed in its clear attempt to fulfill President Trump’s political vendetta against Attorney General James,” said Abbe Lowell, James’ lawyer, in a statement.

“This unprecedented rejection makes even clearer that this case should never have seen the light of day. Career prosecutors who knew better refused to bring it, and now two different grand juries in two different cities have refused to allow these baseless charges to be brought,” Lowell added.

“In addition, a federal judge threw out the first indictment, pointing to the illegal appointment of a prosecutor put in place to carry out the President’s revenge. This case already has been a stain on this Department’s reputation and raises troubling questions about its integrity,” he also said. “Any further attempt to revive these discredited charges would be a mockery of our system of justice.”

It’s unclear whether President Trump’s Department of Justice will seek to indict her once more or pursue an appeal process, as Attorney General Pam Bondi has vowed to do, after the first indictment was dismissed by a federal judge.

Prosecutors still have a six-month grace period to refile any charges since it was dismissed without prejudice in late November.

Roger Keller, a former prosecutor in the US Attorney’s Office for the Eastern District of Missouri, oversaw a Norfolk jury that also failed to secure charges one week before.

Keller took over the prosecution of the New York AG after acting US Attorney Lindsey Halligan brought the charges first on Oct. 9.

That indictment — which hit James, 67, with two counts for alleged bank fraud and making false statements to a financial institution for a mortgage on her Norfolk home — was tossed by US District Judge Cameron Currie on Nov. 24.

Prosecutors also alleged in the initial indictment that the loan agreement for the “second home” was favorable and could have netted her nearly $19,000 in savings.

James has repeatedly denounced the charges as “baseless.” She faced up to 60 years in prison and a $2 million fine if she was convicted on both counts.

Currie ruled that Halligan was improperly appointed to her position and had “no lawful authority” to bring the charges without being confirmed either by Congress or a vote of a judicial panel in the Eastern District of Virginia, where she serves.

Halligan, 36, previously served as President Trump’s personal attorney for his defense team as part of the federal classified documents case in south Florida.

Federal Housing Finance Agency Director Bill Pulte first referred James for alleged mortgage fraud in April, submitting loan documents for a second home she claimed as a “principal residence” after buying it in Norfolk in 2023.

The three-bedroom, one-bath house at the center of the subsequent indictment was purchased on Aug. 17, 2020, with a “second home rider” that also attested she would be its primary occupant and would refuse to rent it out.

Nakia Thompson, James’ grandniece, moved into the house shortly after.

The 36-year-old mother of three — who has a lengthy rap sheet — testified to a federal grand jury earlier this year that she never paid rent, The New York Times first reported, but James recorded up to $5,000 in rental income earned through the “investment” property in her 2020 New York State ethics filings.

After Pulte made the criminal referral earlier this year, James’ ethics filings in May 2025 for the previous calendar year listed the home as “real property” and recorded no rental income.