IN a significant setback for President Donald Trump, a federal judge on Saturday blocked Elon Musk’s Department of Government Efficiency (DOGE) from accessing sensitive Treasury Department records containing personal data, including Social Security numbers and bank account details for millions of Americans.
U.S. District Judge Paul Engelmayer issued the order following a lawsuit filed by 19 Democratic attorneys general, who argue that the Trump administration unlawfully granted Musk’s team access to the Treasury’s central payment system. The case, brought in federal court in New York City, alleges the move violates federal law.
The Treasury’s central payment system is a critical infrastructure that handles trillions of dollars annually, distributing tax refunds, Social Security benefits, veterans’ payments, and other federal funds. It also stores an extensive network of Americans’ personal and financial information.
DOGE, established under the Trump administration, was tasked with identifying and eliminating what it considers wasteful government spending. Its access to Treasury records has sparked intense debate, with critics warning of privacy and security risks, while supporters applaud efforts to curb excessive government expenditures.
New York Attorney General Letitia James, whose office is leading the lawsuit, expressed concerns over DOGE’s authority.
“This unelected group, led by the world’s richest man, is not authorised to have this information, and they explicitly sought this unauthorised access to illegally block payments that millions of Americans rely on — payments for health care, child care, and other essential programmes,” James said in a video message.
James argued that the president does not have unilateral power to share private data or halt federal payments approved by Congress.
Joining New York in the lawsuit are 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.
The suit claims that DOGE’s access could disrupt funding already allocated by Congress, overstepping the Treasury Department’s legal authority. It also asserts that this access violates federal administrative law and the constitutional principle of separation of powers.
Treasury Secretary Scott Bessent is named in the lawsuit for allegedly altering longstanding policies that safeguard sensitive information, enabling DOGE to review payment systems.
“This decision failed to account for legal obligations to protect such data and ignored the privacy expectations of federal fund recipients,” the lawsuit states, referencing data tied to states, veterans, retirees, and taxpayers.
Connecticut Attorney General William Tong criticised DOGE’s role, raising alarms about potential misuse of the data.
“This is the largest data breach in American history,” Tong said in a statement. “DOGE is an unlawfully constituted band of renegade tech bros combing through confidential records, sensitive data, and critical payment systems. What could go wrong?”
The Treasury Department has defended the review, claiming it is focused on assessing system integrity without making operational changes. However, two individuals familiar with the matter, speaking anonymously due to concerns over retaliation, revealed that Musk’s team initially sought ways to suspend payments from the U.S. Agency for International Development, an agency Trump and Musk have reportedly targeted for dismantling.
Meanwhile, Democratic lawmakers have called for a separate Treasury investigation into DOGE’s activities. Additionally, labour unions and advocacy groups have filed lawsuits challenging the legality of DOGE’s access.
A judge in Washington recently issued a temporary order restricting two DOGE employees to “read-only” access as legal battles continue.
Eighteen-Eleven Media