Elon Musk has seen how a federal judge blocked early Saturday the access of the Department of Government Efficiency he leads to the records of the Department of the Treasury containing confidential personal data such as Social Security numbers or bank account numbers of millions of Americans, reports AP.
District Judge Paul Engelmayer issued the order after 19 Democratic attorneys general sued President Donald Trump. The case, filed in federal court in New York City, alleges that the government allowed Musk's team access to the Treasury's central payment system in violation of federal law.
The payment system manages tax refunds, Social Security benefits, or veteran assistance, among other things, and handles trillions of dollars each year while managing a vast network of personal and financial data of Americans.
Engelmayer, appointed by former President Barack Obama, also ordered that anyone who has been prohibited from accessing sensitive information since January 20 must immediately destroy all copies of material downloaded from the Treasury Department systems.
Musk's Department of Government Efficiency, also known as DOGE, was created to uncover and eliminate what the Trump administration has described as unnecessary government spending. DOGE's access to Treasury records, as well as its inspection of various government agencies, has raised widespread concerns among critics about Musk's growing power, while supporters have applauded the idea of controlling the government's hefty finances.
Musk has mocked criticisms of DOGE on his X social media platform, claiming to be saving taxpayers millions of dollars.
New York Attorney General Letitia James, whose office filed the lawsuit, said DOGE's access to Treasury data raises security issues and the possibility of an illegal freeze of federal funds.
"This unelected group, led by the world's richest man, is not authorized to have this information, and explicitly sought this unauthorized access to illegally block payments that millions of Americans rely on, payments for healthcare, childcare, and other essential programs," James said in a video released by her office on Friday.
James, a Democrat who has been one of Trump's main antagonists, said the president does not have the power to give away Americans' private information to whomever he chooses, and cannot suspend federally approved payments.
The lawsuit also involves Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin.
The lawsuit argues that DOGE's access to Treasury records could interfere with funds already allocated by Congress, exceeding the Treasury Department's statutory authority. It also claims that DOGE's access violates federal administrative law and the Constitution's separation of powers doctrine.
It also accuses Treasury Secretary Scott Bessent of changing the department's long-standing policy to protect confidential personal and financial information and allowing Musk's team access to its payment systems.
"This decision disregarded the legal obligations to protect such data and ignored the privacy expectations of federal funds recipients," including states, veterans, retirees, and taxpayers, the lawsuit argues.
Connecticut Attorney General William Tong pointed out that it is unclear what DOGE is doing with the information in the Treasury systems.
"This is the biggest data breach in U.S. history," Tong stated in a Friday release. "DOGE is an illegally constituted band of rogue technologists reviewing confidential records, sensitive data, and critical payment systems. What could go wrong?"
The Treasury Department has stated that the review aims to assess the system's integrity and no changes are being made. According to two people familiar with the process, Musk's team began its investigation seeking ways to suspend payments made by the U.S. Agency for International Development, which Trump and Musk are trying to dismantle.
On the other hand, Democratic lawmakers are seeking the Treasury Department to investigate DOGE's access to the government's payment system.
Additionally, unions and advocacy groups have filed a lawsuit to block the payment system review due to concerns about its legality. On Thursday, a judge in Washington temporarily restricted access to two employees with "read-only" permissions.