The popular cryptocurrency, DOGE, which has been championed by Musk and was at the forefront of Trump’s pledge to streamline the federal government, is now embroiled in a legal battle involving various federal lawsuits. These legal actions assert that DOGE has inappropriately gained access to sensitive information and is unlawfully dismantling government departments. In response to these allegations, federal judges have temporarily prevented DOGE from obtaining sensitive data from the Treasury Department. Additionally, an agreement has been reached with the Department of Education to restrict DOGE’s access to student loan records.
A lawsuit challenging the downsizing of USAID has led to a temporary injunction preventing the agency from placing over 2,000 employees on leave. The lawsuit argues that the President lacks the constitutional authority to unilaterally dismantle the government or delegate such extensive power to an unelected individual.
According to the Appointments Clause of the Constitution, anyone deemed a “principal officer” of the U.S. government must receive confirmation from the U.S. Senate. Despite the White House labeling Musk as a “special government employee” overseeing DOGE, the states filing the lawsuit assert that Musk wields significant authority and unprecedented access throughout the federal government, reporting directly to President Trump. They argue that Musk effectively functions as a “principal officer” rather than a mere adviser.
The lawsuit claims that DOGE has inserted itself into multiple federal agencies and that Musk exercises authority over staffing decisions in these agencies. It further alleges that Musk’s actions exceed his authority and are contrary to the law. The 14 states involved in the lawsuit are seeking a court order to restrict Musk’s ability to restructure federal agencies and declare his past actions as unlawful.
Both Musk and the Trump administration maintain that DOGE is focused on eliminating government waste and potential corruption within federal agencies. The White House spokesperson has reiterated that Musk is adhering to all relevant federal laws.
The legal dispute over DOGE and Musk’s alleged unconstitutional authority underscores the complexities surrounding the intersection of cryptocurrency, government operations, and legal oversight.
