Court Halts Treasury Records Access Amid Lawsuit by Democratic Attorneys General
A federal judge issued an emergency injunction early Saturday, blocking Elon Musk’s Department of Government Efficiency (DOGE) from accessing highly sensitive Treasury Department records containing Social Security numbers, bank account details, and other personal financial information for millions of Americans.
The ruling, handed down by U.S. District Judge Paul A. Engelmayer in New York, comes after 19 Democratic attorneys general filed a lawsuit against the Trump administration. The lawsuit alleges that President Donald Trump unlawfully granted Musk’s team access to the Treasury Department’s central payment system, violating federal law. The system processes trillions of dollars in payments, including tax refunds, Social Security benefits, and veterans’ assistance.
Judge Orders Immediate Destruction of Illegally Accessed Data
In his ruling, Engelmayer—an Obama appointee—ordered that any materials DOGE obtained since January 20 must be destroyed immediately. A hearing on the matter is scheduled for February 14. The White House has not yet responded to requests for comment.
Musk’s DOGE initiative was created by the Trump administration to root out what it calls “wasteful government spending.” While supporters view it as a bold effort to curb inefficiencies, critics argue it gives Musk undue power over federal finances and endangers Americans’ privacy.
Concerns Over Government Payments and Security Risks
New York Attorney General Letitia James, who is leading the lawsuit, warned that DOGE’s unrestricted access to Treasury records could allow for unlawful interference with federal payments, including healthcare and childcare assistance.
“This unelected group, led by the world’s richest man, is not authorized to have this information,” James said in a statement. “They explicitly sought this unauthorized access to illegally block payments that millions of Americans rely on.”
James also emphasized that the president lacks the legal authority to distribute private financial information at will or suspend payments that Congress has already approved.
Lawsuit Accuses Treasury of Violating Constitutional Protections
The lawsuit, filed by attorneys general from states including California, Illinois, Massachusetts, and Wisconsin, argues that DOGE’s access exceeds the Treasury Department’s statutory authority. It also claims that the move violates federal administrative law and the U.S. Constitution’s separation of powers doctrine.
Additionally, the suit accuses Treasury Secretary Scott Bessent of improperly reversing long-standing safeguards on sensitive personal and financial data to accommodate Musk’s team. The plaintiffs argue that this decision disregards legal obligations to protect Americans’ private information.
Fears of the Largest Data Breach in U.S. History
Connecticut Attorney General William Tong labeled DOGE’s actions “the largest data breach in American history” and raised concerns about how Musk’s team is using the information.
“DOGE is an unlawfully constituted band of renegade tech bros combing through confidential records, sensitive data, and critical payment systems,” Tong said. “What could go wrong?”
The Treasury Department maintains that DOGE’s inquiry is focused on assessing the integrity of the payment system and that no changes have been made. However, anonymous sources told The Associated Press that Musk’s team was initially investigating ways to halt payments made by the U.S. Agency for International Development, which both Trump and Musk are seeking to dismantle.
Democratic Lawmakers Demand Investigation
In a separate effort, Democratic lawmakers are pushing for a formal Treasury Department investigation into DOGE’s access to federal payment systems. The case is expected to spark a major legal and political battle over the future of federal financial oversight and the role of private individuals in government operations.
