Federal Judge Blocks Elon Musk’s Team from Accessing Treasury Systems Amid Security Concerns

A federal judge issued a temporary injunction on Saturday, barring billionaire Elon Musk’s government efficiency team from accessing U.S. Treasury Department systems that process trillions of dollars in payments. The decision, citing risks of improper disclosure of sensitive information, marks a significant legal challenge to Musk’s role in the federal administration.

U.S. District Judge Paul Engelmayer of Manhattan granted the order following a lawsuit filed late Friday by a coalition of Democratic attorneys general from 19 states. The lawsuit argued that Musk’s Department of Government Efficiency (DOGE) lacks legal authority to access federal financial infrastructure. The ruling also extended to other political appointees of former President Donald Trump’s administration.

Reacting to the decision, Musk took to his social media platform, X, calling the ruling “absolutely insane.” He defended DOGE’s initiatives, stating that the Treasury Department had agreed to require all outgoing government payments to include a rationale and a categorization code. Additionally, he emphasized the necessity of frequently updating the government’s "do-not-pay" list to prevent fraudulent transactions.

Despite Musk’s assertions that these changes were “obvious and necessary” and were being executed by government employees rather than DOGE staff, state attorneys general warned that the access granted to Musk’s team posed significant risks. They argued that the initiative could disrupt federal funding for essential services, including healthcare, education, and climate programs. Furthermore, they alleged that Trump could exploit the data to advance his political agenda.

Security Risks and Legal Challenge

The lawsuit highlighted concerns over cybersecurity vulnerabilities, asserting that DOGE’s involvement heightened the risk of data breaches that could endanger state funding and resident information. Judge Engelmayer found these claims compelling, stating that the plaintiffs presented a “particularly strong” case, justifying immediate emergency relief. A further hearing is scheduled for February 14.

"The risk of disclosing sensitive and confidential information, combined with an increased vulnerability to hacking, necessitates immediate judicial intervention," Engelmayer wrote in his ruling.

New York Attorney General Letitia James, who is leading the case, welcomed the decision, emphasizing that "no one is above the law." She argued that the public had been “horrified” by DOGE’s unrestricted access to sensitive government data.

“We knew the Trump administration’s decision to grant unauthorized access was illegal, and this morning, a federal court agreed,” James stated. “Now, Americans can trust that Musk—the world’s richest man—will not have free rein over their personal information while our lawsuit proceeds.”

Restrictive Measures and Political Implications

The judge’s order specifically prohibits Treasury Department payment and data systems from being accessed by political appointees, special government employees, or staff detailed from agencies outside the Treasury. Furthermore, it mandates that any unauthorized copies or downloads of government data be immediately destroyed.

Neither the White House nor the Treasury Department has issued an official response to the ruling.

Musk was personally appointed by Trump to lead DOGE in an effort to eliminate government inefficiencies and identify fraudulent spending. However, his sweeping influence has raised alarms among Democrats and advocacy groups, who argue that his initiatives exceed legal boundaries, potentially dismantling key federal programs and leading to mass firings of federal workers.

Treasury Secretary Scott Bessent, a Trump appointee, sought to reassure lawmakers earlier this week, stating that Musk would not have direct control over the Treasury’s payment system. He clarified that decisions to halt or alter government payments would remain under the purview of respective federal agencies.

As the legal battle unfolds, the ruling represents a critical moment in the ongoing debate over the limits of private sector influence in government operations. With a high-stakes hearing approaching, the controversy surrounding Musk’s role in federal governance is far from over.