On Friday a New York federal judge issued a preliminary injunction preventing members of Elon Musk's Department of Government Efficiency (DOGE) from accessing the Treasury Department's central payment system.
The case was filed by 19 attorney generals, led by New York Attorney General Letitia James, who welcomed the verdict on Musk-owned platform X.
Newsweek contacted Musk for comment, via emails to the SpaceX and Tesla press offices, outside of regular office hours.
Why It Matters
The Treasury's central payment system includes personal financial information of millions of Americans, including Social Security and bank account data, making any security breach potentially highly damaging.
DOGE is attempting to slash what it regards as wasteful government spending, with Musk having previously suggested that the federal budget could be cut by up to $2 trillion. Unfavorable court rulings could set the Trump administration on a collision course with elements of the judiciary, with Vice President JD Vance having previously said that judges should not be able "to control the executive's legitimate power."
What To Know
On Friday U.S. District Judge Jeannette Vargas barred Musk's DOGE team from accessing the Treasury's central payment system on a temporary basis while the case is assessed on its merits.
It effectively extended a temporary access ban first put in place by U.S. District Judge Paul Engelmayer earlier this month, who said the move was necessary while the case received further consideration. The move infuriated Musk who called for Engelmayer's impeachment.
In her 64-page judgement Vargas said she was granting the preliminary injunction because of concerns over the possible disclosure of states' bank records. However she added the plaintiffs had "not demonstrated that they are entitled to the broad and sweeping relief they seek, which would far exceed the scope of the present TRO (Temporary restraining order)."
The Trump administration's legal team insisted only two DOGE team members had access to the Treasury Department's central payment system, who had been given the status of temporary Treasury employees and some training.
However, lawyers for the attorney generals argued Musk's team had been given unlawful access to the data, creating security risks, and intended to stop federal government payments to various groups based on an "ideological litmus test."
DOGE was created by President Donald Trump shortly after his second presidential inauguration on January 20. The department has overseen a significant reduction in the federal workforce, including a mass layoff of probationary employees. DOGE claims it has saved $55 billion of federal money so far, though this figure has been contested and could be as low as $2 billion according to NPR.
What People Are Saying
Reacting to Friday's ruling on X, James wrote: "We just won a court order stopping DOGE and unauthorized, unelected, and unvetted individuals like Elon Musk from accessing people's private data and blocking federal funds. We will keep fighting to protect all Americans from this administration's destruction."
Also on X, New Jersey Attorney General Matt Platkin said: "DOGE hackers lose again: court agrees with us that the world's richest man can't spy on your sensitive data."
Speaking in court Jeffrey Stuart Oestericher, one of the Trump administration's lawyers, said: "There is nothing unlawful about the Treasury carrying out the new policies of the new administration using Treasury employees."
What Happens Next
Legal battles over DOGE's access to the Treasury payment system look set to continue, and could potentially make it all the way to the Supreme Court. Trump could decide to ignore one or more court orders, but this risks throwing the United States into a full on constitutional crisis.
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