Federal Court Blocks Musk’s Agency from Treasury Access
A federal judge took a significant step early Saturday by halting Elon Musk’s Department of Government Efficiency (DOGE) from accessing sensitive Treasury Department records, including personal data like Social Security and bank account numbers. This move comes in response to a lawsuit filed by 19 Democratic attorneys general.
Judge Paul A. Engelmayer, appointed by former President Barack Obama, issued a preliminary injunction following the lawsuit against President Donald Trump. The lawsuit, presented in a federal court in New York City, contends that the Trump administration improperly permitted Musk’s team to access the Treasury Department’s central payment system, allegedly breaching federal regulations.
The Treasury Department’s payment system is a crucial component, managing tax refunds, Social Security benefits, veterans’ payments, and more, with trillions of dollars processed annually. This system contains extensive personal and financial data of Americans.
Judge Engelmayer’s order also mandates the immediate destruction of any downloaded sensitive information from Treasury Department systems by individuals who were restricted from access since January 20.
The next court hearing is scheduled for February 14.
While the White House has yet to comment on the lawsuit, Arizona Attorney General Kris Mayes described Musk’s actions as an “administrative coup” that has disrupted many lives. “And it has led Americans from across the political spectrum to rightfully question the security of their private, personal and financial data,” she stated.
Mayes emphasized that DOGE lacks the authority to access such information, especially if Musk’s intention is to obstruct federal payments like Social Security, though no such blocks have occurred.
DOGE, an initiative designed to identify and eliminate so-called wasteful government spending, was introduced by the Trump administration. It has sparked controversy over its access to Treasury records and scrutiny of various government agencies. Critics are concerned about Musk’s expanding influence, while supporters applaud the effort to curb excessive government spending.
Musk has responded to criticism of DOGE with humor on his X social media platform, asserting that it saves taxpayers millions.
New York Attorney General Letitia James, whose office filed the lawsuit, expressed concerns about security risks and potential illegal freezing of federal funds due to DOGE’s access to the Treasury data. “This unelected group, led by the world’s richest man, is not authorized to have this information, and they explicitly sought this unauthorized access to illegally block payments that millions of Americans rely on, payments for health care, child care and other essential programs,” James stated in a video message.
James, a consistent critic of Trump, argued that the president cannot arbitrarily distribute Americans’ private information or halt federal payments approved by Congress.
The lawsuit, supported by states including Arizona, California, and New York, claims that DOGE’s access could interfere with Congressional funding and breaches federal administrative law and the U.S. Constitution’s separation of powers doctrine.
The lawsuit also accuses Treasury Secretary Scott Bessent of altering policy to allow DOGE’s access, disregarding legal obligations for data protection and privacy expectations of federal fund recipients.
Connecticut Attorney General William Tong expressed uncertainty over DOGE’s intentions with the Treasury data, labeling it the “largest data breach in American history.” “DOGE is an unlawfully constituted band of renegade tech bros combing through confidential records, sensitive data and critical payment systems. What could go wrong?” Tong remarked.
The Treasury Department maintains that the review is to assess system integrity without making changes. According to sources, Musk’s team is exploring methods to suspend payments by the U.S. Agency for International Development, an agency Trump and Musk aim to dismantle.
Meanwhile, Democratic lawmakers are calling for a Treasury Department investigation into DOGE’s access to the payment system. Additionally, labor unions and advocacy groups have filed lawsuits challenging the legality of the payment system review. A judge in Washington recently restricted access for two employees to “read only” privileges.
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