A public dispute between New Mexico's attorney general and the U.S. Justice Department escalated Tuesday over records sought in the state's Jeffrey Epstein investigation.Why it matters: The clash underscores questions about whether federal privacy restrictions and court orders are preventing state investigators from pursuing potential criminal leads tied to Epstein's former Zorro Ranch in New Mexico.Zoom in: New Mexico Attorney General Raúl Torrez doubled down Tuesday on claims that the federal DOJ is "hindering" his investigation by "withholding" unredacted Epstein files, accusing the federal agency in a letter of refusing to cooperate.In a letter last month to acting Attorney General Todd Blanche, Torrez said that despite "verbal assurances of cooperation from the USDOJ, access to the requested records has not been granted, no substantive response has been provided." The letter gave the U.S. DOJ until July 31, after which, he wrote "the NMDOJ will treat this request as denied and will pursue all available legal remedies."The New Mexico DOJ office said on X Tuesday afternoon that the U.S. Justice Department's Southern District of New York office "called to inform us they will NOT cooperate and will not support the only active criminal investigation into Jeffrey Epstein."Yes, but: A spokesperson for the U.S. DOJ called that characterization "false" in a statement to Axios.To "capitulate to their demands would be to break federal law. Is that what the NM AG is suggesting?" the spokesperson said."Federal law, court orders and privacy protections for victims and witnesses do not allow us to release millions of unredacted documents, regardless of any deadline set by NMDOJ. We will continue to follow federal law and the court orders that are in place."Catch up quick: In February, New Mexico lawmakers announced an investigation into allegations that Epstein trafficked and sexually abused girls and women at the sprawling Zorro Ranch outside Santa Fe.The New Mexico attorney general's office wrote to the U.S. Justice Department that month seeking unredacted access to an anonymous 2019 email that alleged two "foreign girls" were buried at Zorro Ranch.Epstein accuser Annie Farmer alleged in testimony at the 2021 trial of Ghislaine Maxwell that his since-convicted co-conspirator abused her at the ranch when she was 16 years old. Farmer has also accused Epstein of abusing her there.A New Mexico criminal investigation ended in 2019 with no charges filed.What's next: New Mexico's attorney general has given the U.S. DOJ until July 31 to respond before pursuing what he says are "all available legal remedies."