A federal judge issued a ruling early on Saturday, February 8, 2025, blocking Elon Musk’s Department of Government Efficiency from accessing Treasury Department records containing sensitive personal data, such as Social Security and bank account numbers, for millions of Americans.
Nineteen Democratic attorneys general filed a lawsuit against President Donald Trump on Friday, February 7, 2025, seeking to prevent Mr. Musk’s Department of Government Efficiency from obtaining access to Treasury Department records with sensitive personal information.
The lawsuit, filed in federal court in New York City, alleges that the Trump administration allowed Mr. Musk’s team access to the Treasury Department’s central payment system in violation of federal law.
The payment system manages tax refunds, Social Security benefits, veterans’ benefits, and other payments, handling trillions of dollars annually while containing a vast amount of personal and financial data belonging to Americans.
New York Attorney General Letitia James, who led the lawsuit, expressed concerns about the security risks posed by DOGE’s access to Treasury data and the potential for illegal freezes on federal funds.
The lawsuit, joined by eighteen other states, argues that DOGE’s access to Treasury records could disrupt already approved funding from Congress, exceeding the Treasury Department’s legal authority. The case also contends that DOGE’s access violates federal administrative law and the separation of powers doctrine in the U.S. Constitution.
The lawsuit also accuses Treasury Secretary Scott Bessent of altering the department’s data protection policies to grant Mr. Musk’s DOGE team access to its payment systems.
Connecticut Attorney General William Tong raised concerns about the purpose of DOGE’s access to Treasury systems, referring to it as potentially the “largest data breach in American history.”
The Treasury Department stated that the review was focused on evaluating system integrity and that no changes were being made. It was reported that Mr. Musk’s team initially looked into suspending payments by the U.S. Agency for International Development.
Separately, Democratic lawmakers are requesting a Treasury Department investigation into DOGE’s access to the government’s payment system.
Additionally, labor unions and advocacy groups have taken legal action to halt the payment system review, citing concerns about its legality. A judge in Washington has temporarily restricted access to only two employees with “read only” privileges.
Published – February 08, 2025 12:24 pm IST
