Federal judge blocks Elon Musk-led DOGE from accessing treasury records

File photo: Elon Musk (Picture credit: ANI)

A federal judge issued a preliminary injunction on Saturday blocking Elon Musk’s department of government efficiency (DOGE) from accessing sensitive treasury department records, including social security and bank account numbers of millions of Americans, reported the news agency AP.
US district judge Paul A Engelmayer, appointed by Barack Obama, ruled that DOGE’s access to the treasury’s central payment system violates federal law.

The system manages trillions of dollars in federal payments, including tax refunds, social security benefits, and veterans’ benefits.
The decision follows a lawsuit filed by 19 Democratic attorneys general against Donald Trump, alleging his administration unlawfully granted Musk’s team access to confidential financial data. Judge Engelmayer also ordered that anyone who accessed the data since January 20 must destroy all copies immediately.
The next hearing is set for February 14.
DOGE, created under Trump’s administration, was tasked with eliminating “wasteful” government spending but has drawn scrutiny over its broad powers and Musk’s influence.
According to AP, critics warn its access to treasury records could be used to illegally freeze federal payments, while Musk and supporters argue it is saving taxpayers millions.
On X, Musk had dismissed concerns, calling criticism of DOGE overblown. Meanwhile, New York attorney general Letitia James, who led the lawsuit, warned of security risks and was quoted by AP saying, “This unelected group, led by the world’s richest man, is not authorized to have this information. They explicitly sought this unauthorized access to illegally block payments that millions of Americans rely on.”
James accused Trump of improperly granting access to federal funds and personal data and said “The president does not have the power to give away Americans’ private information to anyone he chooses, and he cannot cut federal payments approved by Congress.”
The lawsuit, backed by attorneys general from California, Illinois, Connecticut, and other states, argues that DOGE’s access to treasury data violates federal administrative law and the US Constitution’s separation of powers doctrine. It also alleges that treasury secretary Scott Bessent altered longstanding policies on sensitive data to permit Musk’s team access.
Connecticut attorney general William Tong called the situation “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 added.
Meanwhile, the treasury department claims the review is focused on assessing the system’s integrity and denies any immediate policy changes.
However, sources familiar with the process told The Associated Press that Musk’s team initially investigated ways to suspend payments from the US Agency for International Development (USAID), which Trump and Musk seek to dismantle.
In addition to the federal lawsuit, Democratic lawmakers have called for a treasury department investigation into DOGE’s access. Separately, labour unions and advocacy groups have filed lawsuits to halt DOGE’s payment system review, leading a judge in Washington, DC, to temporarily restrict access to certain employees with “read-only” privileges.