James served on the Greater Victoria School Board from 1990 to 2001, including seven terms as chair, and gained a province-wide profile in her unprecedented five terms as president of the BC School Trustees Association. She also served at the national level as vice-president of the Canadian School Boards Association. From 1999 to 2001, James held the position of director of child care policy for the British Columbia government. In addition, she served on several local and provincial panels and committees. In 2001, James ran unsuccessfully for the NDP in the riding of Victoria-Beacon Hill only losing by 35 Votes to BC Liberal candidate Jeff Bray. She subsequently moved to Prince George, British Columbia to serve as the director of child and family services for CarrierSekani Family Services, and later as co-ordinator of the Northern Aboriginal Authority for Families.
Political career
BCNDP leadership
James was elected leader of the provincial NDP on November 23, 2003. At the time of her election the party was suffering low morale in the wake of the 2001 provincial election, which had reduced the NDP to only two seats in the Legislative Assembly. During her campaign to win the party leadership, James pledged to modernize the NDP's ideology and internal structures and build a broader base of support for the party, a move which alienated some traditional supporters. During the 2005 provincial election, James campaigned heavily on her name and image. On election night James and the NDP surprised many supporters and critics alike with a very strong electoral showing; the party winning 41.52 per cent of the popular vote and 33 out of 79 seats in the Legislative Assembly. James won her seat in the riding of Victoria-Beacon Hill with 57.01 per cent of the vote, defeating the incumbent BC Liberal MLA Jeff Bray by an almost 2-1 margin. She was re-elected in 2009, 2013, and 2017.
Leadership controversy and resignation
On December 1, 2010, Jenny Kwan, a prominent party member, released a statement to the media criticizing James' leadership of the New Democratic Party, and calling for an immediate leadership convention. In response to Kwan's statement, James called an emergency caucus session to address opposition to her continued leadership. While the session was meant to take place on December 5, it was later postponed so that private discussions could take place with a group of thirteen caucus members opposed to James' continued leadership. On short notice on December 6, James announced she would resign the party's leadership. She continued in the position, however, until Dawn Black was chosen to act as Interim Leader. James served as opposition Critic for Children and Family Development under her successor, Adrian Dix. She was promoted to the Finance portfolio under John Horgan, and was also named deputy leader of the BC NDP and hence Deputy Leader of the Opposition.
In government
When the BC NDP won a minority government in 2017, James became Deputy Premier and Finance Minister.