In a major legal development, a federal judge temporarily restricted Elon Musk government efficiency team, known as the Department of Government Efficiency (DOGE), from accessing the US Treasury’s payment system. This system is critical as it handles the distribution of tax refunds, Social Security benefits, disability payments, and federal employee salaries.
Judge Concerns Over Data Security
US District Judge Paul Engelmayer issued the order on Saturday, citing concerns over potential “irreparable harm.” He emphasized the risk of sensitive information being leaked and heightened vulnerabilities to hacking if unauthorized access continues.
The judge also mandated the immediate destruction of any data that was downloaded from the payment system since January 20. A hearing on this matter has been scheduled for February 14.
White House and Elon Musk React
The White House slammed the judge’s decision, calling it “judicial overreach.” White House spokesperson Harrison Fields stated that “some people would rather stall necessary reforms with legal tricks than support efforts to reduce government inefficiencies.”
Meanwhile, Elon Musk defended DOGE’s role, stating in a social media post that the Treasury Department and DOGE “jointly agreed” to the changes. According to Musk, these updates included implementing financial categorization codes to ensure transparency during audits.
“These necessary changes are being implemented by long-time career government employees, not by DOGE associates,” Musk added, criticizing the lack of prior systems in place.
Legal Challenges and Allegations
The lawsuit, led by New York Attorney General Letitia James along with 18 other state attorneys general, argues that Musk’s DOGE team has unlawfully accessed sensitive government data. The lawsuit claims the team includes associates classified as “special government employees” who lack proper clearance for such access.
This legal battle is one of many involving the administration’s push to cut costs and shrink the government workforce. Recent rulings have temporarily halted other major initiatives, including buyout offers for federal employees and plans to dismantle the US Agency for International Development (USAID).
Why the Treasury Payment System Matters
The Treasury payment system processes financial transactions for more than 250 federal agencies and is essential for distributing millions of critical payments to US residents. Experts warn that unauthorized access could disrupt government operations and compromise personal data.
Political and Security Implications
DOGE push to gain access to sensitive government systems has sparked widespread criticism from Democratic lawmakers and unions. Concerns have been raised about potential misuse of government systems and the privacy of millions of Americans.
This latest court order highlights the importance of judicial oversight in protecting government systems from unauthorized interference while ensuring accountability for administrative reforms.