A recent ruling by a federal judge has put a halt to Elon Musk’s Department of Government Efficiency’s plans to access Treasury Department records containing personal data of millions of Americans. U.S. District Judge Paul A. Engelmayer issued a preliminary injunction after a lawsuit was filed by 19 Democratic attorneys general against President Donald Trump. The lawsuit alleges that the Trump administration unlawfully granted Musk’s team access to the Treasury Department’s payment system in violation of federal law.
The payment system manages a vast amount of personal and financial data, handling tax refunds, Social Security benefits, veterans’ benefits, and other crucial financial transactions. Judge Engelmayer, appointed by President Barack Obama, ordered that any unauthorized access to this sensitive information be ceased, and all downloaded material must be destroyed. A hearing is scheduled for February 14.
The White House has not yet commented on the lawsuit. Musk’s Department of Government Efficiency, also known as DOGE, was established to identify and eliminate wasteful government spending. However, critics have expressed concerns over the extent of DOGE’s access to sensitive data, while supporters argue that it could help in streamlining government finances.
New York Attorney General Letitia James, leading the legal action, raised concerns about security and potential freezing of federal funds due to DOGE’s access to Treasury data. She emphasized that unauthorized access to this information could disrupt essential payments for millions of Americans. The lawsuit includes 18 other states and challenges the legality of DOGE’s access, alleging violations of federal law and constitutional principles.
The lawsuit also accuses Treasury Secretary Scott Bessent of altering data protection policies to allow DOGE access to the payment system. James stressed that protecting private information and upholding privacy rights are crucial obligations that must not be overlooked.
The lawsuit alleges that DOGE has accessed confidential records and critical payment systems, potentially affecting various groups such as states, veterans, retirees, and taxpayers. Connecticut Attorney General William Tong expressed concerns about the lack of clarity regarding DOGE’s actions within the Treasury systems, describing the situation as “the largest data breach in American history.” Tong criticized DOGE as an “unlawfully constituted band of renegade tech bros” who are potentially mishandling sensitive information.
The Treasury Department has stated that the review is merely focused on assessing system integrity without making any changes. It has been reported that Elon Musk’s team initiated the inquiry to explore the suspension of payments by the U.S. Agency for International Development, a move that aligns with the efforts of Trump and Musk to dismantle the agency. However, this information comes from individuals who preferred to remain anonymous due to concerns of potential retaliation.
In response to these developments, Democratic lawmakers are calling for a Treasury Department investigation into DOGE’s access to government payment systems. Additionally, labor unions and advocacy groups have taken legal action to halt the payments system review, citing concerns over its legality. A judge in Washington temporarily restricted access to two employees with “read only” privileges, demonstrating the ongoing legal challenges surrounding this issue.
