Title: Court Denies Restriction on Tech Titan’s Cryptocurrency Access, Union to Provide Further Evidence
A federal judge has rejected a request to prevent Elon Musk’s government efficiency department from accessing the U.S. Department of Labor’s systems, marking an initial setback for government employee unions resisting his efforts to streamline the federal bureaucracy. The ruling by U.S. District Judge John Bates in Washington, D.C., is a temporary decision in response to a lawsuit filed by one of the largest U.S. labor unions. The union alleges that billionaire Musk could gain access to sensitive information regarding investigations into his own companies and competitors through government computer systems.
Although expressing concerns about the defendant’s actions, Judge Bates stated that the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) had not demonstrated harm from the Labor Department’s actions. AFL-CIO President Liz Shuler described the decision as a setback but not a defeat, confirming that the union will present additional evidence to support its claims. A Department of Labor spokesperson did not immediately provide a comment following the ruling.
President Donald Trump has appointed Musk, the world’s wealthiest individual and the owner of companies such as Tesla and SpaceX, to lead the Department of Government Efficiency (DOGE) in a bid to identify government waste and fraud. Musk’s actions have raised concerns among lawmakers and advocacy groups who believe he is exceeding his authority by targeting agencies responsible for essential government functions and carrying out large-scale firings of federal employees.
Separately, another group of federal employee unions and retirees has filed a lawsuit against the Treasury Department to halt the alleged unauthorized sharing of sensitive payment information with DOGE personnel. The Treasury has agreed to suspend further access pending the resolution of the case.
In the lawsuit against the Labor Department, the AFL-CIO sought a court order to prevent Musk from accessing department systems, raising concerns about potential access to confidential information related to investigations into Musk’s companies and competitors. The union also expressed worries that DOGE could obtain non-public data from the Occupational Safety and Health Administration and Bureau of Labor Statistics, including details about the economy’s health and sensitive employee information.
Amid these developments, the White House has indicated that Musk will recuse himself from matters where conflicts of interest may arise. As a special government employee, Musk is subject to certain conflict-of-interest and ethics regulations governing federal workers, but not all.
Musk’s rapid assumption of control over various U.S. government agencies has allowed him to wield significant influence over the federal workforce and initiate substantial changes within the government structure. Already, Musk has taken steps to close the U.S. Agency for International Development and terminate numerous government contracts and leases.
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