Federal Judge Blocks Musk's DOGE Access to Sensitive U.S. Treasury Data

Federal Judge Blocks Musk's DOGE from Accessing Sensitive U.S. Treasury Data

A federal judge issued an injunction early Saturday that prevents Elon Musk’s Department of Government Efficiency (DOGE) from accessing crucial Treasury Department records. These records contain sensitive personal data, such as Social Security numbers and bank account details, for millions of Americans.

The decision was made after 19 Democratic attorneys general filed a lawsuit against former President Donald Trump’s administration. The suit, brought to federal court in New York City, claims that the Trump administration illegally permitted Musk’s team to access the Treasury Department’s central payment system, which handles tax refunds, Social Security benefits, veterans’ payments, and more. The system is responsible for distributing trillions of dollars annually and contains a vast network of Americans’ personal and financial information.

U.S. District Judge Paul A. Engelmayer, appointed by President Barack Obama, issued the preliminary injunction. In his ruling, Engelmayer stated that anyone who gained access to the sensitive information after January 20 must immediately destroy any copies of the data downloaded from Treasury Department systems. A hearing has been scheduled for February 14.

The White House has yet to respond to a request for comment regarding the lawsuit. DOGE, also known as Musk's Department of Government Efficiency, was created to identify and eliminate wasteful government spending, a move supported by Musk’s followers who argue it will save taxpayers millions of dollars. However, its access to Treasury records has sparked alarm, raising concerns over the growing influence of Musk, a billionaire entrepreneur, and the risks associated with granting his team access to sensitive government data.

Critics, including New York Attorney General Letitia James, argue that DOGE’s access to Treasury data poses security risks and may result in illegal freezes on federal payments. James, whose office filed the lawsuit, emphasized that Musk’s team is not authorized to access this sensitive information and accused them of seeking unauthorized access to potentially block payments vital to millions of Americans. These payments support essential programs such as health care, child care, and more.

James pointed out that the president does not have the authority to grant private individuals, particularly unelected officials like Musk, access to Americans' private data, nor can he suspend federal payments approved by Congress.

Alongside New York, 18 other states—Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin—are party to the lawsuit. The suit argues that DOGE’s access could disrupt the distribution of funds already authorized by Congress, which would exceed the Treasury Department's statutory authority. The case further contends that allowing Musk’s team to examine sensitive Treasury records violates federal administrative law and the U.S. Constitution's separation of powers.

The lawsuit also accuses Treasury Secretary Scott Bessent of changing long-standing policies designed to protect sensitive personal and financial information, thereby allowing Musk’s team access to the department’s payment systems.

"This decision has failed to account for the legal obligations to safeguard such data and disregards the privacy expectations of Americans who rely on federal programs," the lawsuit states.

Connecticut Attorney General William Tong expressed concern over DOGE’s intentions, questioning what the team plans to do with the Treasury Department’s information. "This is the largest data breach in American history," Tong said, criticizing the team as an "unlawfully constituted band of renegade tech bros" sifting through confidential records and critical payment systems.

The Treasury Department has defended its actions, claiming the review is intended to assess the integrity of the system and assert that no changes are being made. Two anonymous sources familiar with the process told The Associated Press that Musk’s team initially began reviewing the system to explore the possibility of halting payments from the U.S. Agency for International Development, which both Trump and Musk have aimed to dismantle.

Democratic lawmakers are also calling for a formal investigation into DOGE’s access to Treasury systems. Labor unions and advocacy groups have filed their own lawsuits, attempting to block the review of the payments system, citing legal concerns. Last Thursday, a judge in Washington temporarily restricted access for two employees with “read-only” privileges, intensifying scrutiny of the investigation.