Court Stops Elon Musk’s Team from Reviewing Americans’ Personal Financial Records

Federal Judge Blocks Elon Musk’s DOGE Team from Accessing Sensitive U.S. Treasury Records

A federal judge issued a ruling early Saturday that blocks Elon Musk’s Department of Government Efficiency (DOGE) from accessing sensitive U.S. Treasury Department records containing personal data for millions of Americans. The records in question include crucial information such as Social Security numbers and bank account details.

Judge’s Ruling: Preliminary Injunction in Response to Lawsuit

U.S. District Judge Paul A. Engelmayer issued a preliminary injunction after 19 Democratic state attorneys general filed a lawsuit against President Donald Trump. The case, presented in New York federal court, alleges that the Trump administration unlawfully granted Musk’s team access to the Treasury’s central payment system. This system is responsible for distributing trillions of dollars annually, including tax refunds, Social Security benefits, and veterans’ benefits—all of which contain sensitive personal and financial data.

Judge Engelmayer, appointed by President Barack Obama, emphasized that anyone who accessed the data after January 20 must immediately destroy any copies of information downloaded from the Treasury’s systems. He scheduled a hearing for February 14.

DOGE’s Mission Under Scrutiny

Musk’s Department of Government Efficiency, or DOGE, was created to identify and eliminate perceived wasteful government spending. Its controversial access to Treasury records has sparked debate, with critics raising concerns about Musk’s growing influence and the potential misuse of personal data, while supporters argue that the initiative could streamline government finances and save taxpayers millions.

Musk has dismissed criticism of DOGE on his social media platform X, where he claims the program is saving taxpayer money. However, many state officials are concerned about the implications of allowing a private entity such as DOGE to access such sensitive information.

Lawsuit Alleges Security Risks and Legal Violations

The lawsuit, led by New York Attorney General Letitia James, argues that DOGE’s access to Treasury Department data creates significant security risks. It also suggests that the initiative could lead to an illegal freeze on federal funds, affecting critical programs like healthcare, childcare, and veterans’ benefits.

“This unelected group, led by the world’s richest man, is not authorized to have this information,” James said in a video message. “They explicitly sought this unauthorized access to illegally block payments that millions of Americans rely on.”

James, a vocal critic of Trump, emphasized that the president cannot unilaterally grant access to Americans’ private information nor stop federal payments approved by Congress.

States Join Forces Against DOGE

Alongside New York, the lawsuit includes attorneys general from 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.

The suit argues that DOGE’s access could disrupt payments already authorized by Congress and exceed the Treasury Department’s authority. It also claims that Musk’s team bypassed legal safeguards designed to protect personal and financial data, violating federal law and the Constitution’s separation of powers doctrine. The lawsuit also accuses Treasury Secretary Scott Bessent of altering department policy to allow DOGE’s access.

Concerns About Privacy and Potential Data Breach

Attorney General William Tong of Connecticut called DOGE’s access to Treasury records “the largest data breach in American history.” Tong raised concerns about the potential risks of allowing Musk’s private initiative to comb through confidential records and critical payment systems.

“This is an unlawfully constituted band of renegade tech bros,” Tong said, referring to Musk and his team. “What could go wrong?”

Treasury Department Defends Its Actions

In response to the concerns, the Treasury Department has stated that the review of its systems is focused on assessing their integrity, and no changes are being made. However, two sources familiar with the process revealed that Musk’s team initially began its review with the goal of suspending payments made by the U.S. Agency for International Development (USAID), a move both Musk and Trump have expressed interest in dismantling.

Additional Legal Action and Congressional Scrutiny

Democratic lawmakers are calling for further investigation into DOGE’s access to the Treasury’s payment systems. Meanwhile, labor unions and advocacy groups have also filed lawsuits to block the review over concerns about its legality.

On Thursday, a judge in Washington temporarily restricted two Treasury employees from accessing the payment system, limiting them to “read-only” privileges.

Conclusion

The ongoing legal battle between Elon Musk’s DOGE and state attorneys general highlights significant concerns over the privatization of sensitive government data and the potential risks to millions of Americans’ personal and financial information. As the case moves forward, both sides are preparing for an extended legal fight, with critical hearings scheduled for mid-February.

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