A US federal judge has issued a preliminary injunction preventing Elon Musk’s Department of Government Efficiency (DOGE) from accessing sensitive Treasury Department records containing personal data of millions of Americans.
The ruling came early Saturday (February 8) after 19 Democratic attorneys general sued President Donald Trump, alleging that his administration violated federal law by granting Musk’s team access to the Treasury’s central payment system.
Judge orders destruction of downloaded data
US District Judge Paul A. Engelmayer, who was appointed by former President Barack Obama, ruled that any material obtained from the Treasury Department’s systems since January 20 must be destroyed immediately. He scheduled a hearing for February 14 to further review the case.
Concerns over data security and federal payments
The Treasury’s payment system manages tax refunds, Social Security benefits, and veterans’ benefits, processing trillions of dollars annually. The lawsuit argues that DOGE’s access to such data could lead to unauthorised disruptions in federal fund distributions.
New York Attorney General Letitia James strongly opposed DOGE’s access to these records, stating: “This unelected group, led by the world’s richest man, is not authorized to have this information. They explicitly sought unauthorized access to illegally block payments that millions of Americans rely on.”
Attorney General Letitia James added that President Trump lacks the authority to hand over private financial data and freeze federal payments approved by Congress.
Democratic Attorneys General challenge Trump’s decision
The lawsuit, filed in New York, includes attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin. It alleges that DOGE’s access to Treasury records could interfere with congressional appropriations, exceeding the department’s legal authority.
Connecticut Attorney General William Tong voiced concerns over DOGE’s motives: “This is 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?”
Musk defends DOGE’s role
Musk, who leads DOGE, has defended the agency’s mission on his social media platform, X. He dismissed criticisms, arguing that DOGE is uncovering wasteful government spending and saving taxpayers millions of dollars.
Despite these claims, the agency’s review of Treasury systems has raised alarms among lawmakers, labor unions, and advocacy groups. Democratic legislators are pushing for a Treasury Department investigation into DOGE’s access to the government’s financial data.
Treasury Department’s response
Treasury Secretary Scott Bessent has defended the department’s decision, stating that DOGE’s review aims to assess the integrity of the system. However, critics argue that the change in policy to allow Musk’s team access to financial records ignores legal obligations to protect personal data.
Two sources familiar with the process revealed that Musk’s team initially focused on identifying ways to suspend payments by the US Agency for International Development (USAID), which Trump and Musk are reportedly seeking to dismantle. The individuals spoke to the Associated Press on the condition of anonymity, citing fears of retaliation.
Legal battles continue
Separately, a federal judge in Washington issued a temporary restriction limiting access to Treasury systems to two employees with “read-only” privileges.
Labor unions and advocacy groups have also filed lawsuits challenging the legality of DOGE’s review of payment records.
As the legal battle unfolds, the future of DOGE’s role in government spending oversight remains uncertain, with critics warning of significant privacy and constitutional concerns.
About The Author
