NEW YORK — A federal judge in New York City issued a preliminary injunction early Saturday to prevent Elon Musk’s Department of Government Efficiency from accessing sensitive Treasury Department records containing personal data of millions of Americans. The lawsuit, led by 19 Democratic attorneys general and filed against President Donald Trump’s administration, claims the initiative violated federal law by allowing unauthorized access to crucial financial data systems.
The blocked records include data from the Treasury Department’s central payment system, which manages vast economic transactions such as tax refunds and Social Security payments, totaling trillions of dollars each year. The court ruling comes after concerns were raised about the privacy and security of the American public’s personal and financial information.
U.S. District Judge Paul A. Engelmayer, appointed under President Barack Obama, mandated that anyone who has accessed this sensitive information since January 20 must destroy all downloaded copies. A hearing is scheduled for February 14 to further address the issue.
Launched by Trump, the Department of Government Efficiency (DOGE) was created with the goal of identifying and eliminating what is seen as wasteful government spending. However, the department’s review of Treasury records and various other federal agencies has sparked debates on privacy and the overreach of power by Musk, who has defended the department’s actions on social media, asserting it has resulted in substantial taxpayer savings.
The challenges poised by DOGE’s operations drew sharp criticism from New York Attorney General Letitia James, who argued that the department’s access to Treasury data poses severe security risks and could lead to unlawful interference in federally approved payouts essential for health care, child care, and other critical programs. James stated, “This unelected group, led by the world’s richest man, is not authorized to have this information.”
The controversy also points to possible oversteps in power with claims in the lawsuit that President Trump exceeded his authority by permitting the transfer of private data to an unauthorized entity and potentially halting federal payments that have been previously sanctioned by Congress.
Joining New York in the lawsuit are other states including California, Colorado, and Illinois, among others. These states contend that DOGE’s actions could disrupt federally approved funding, a violation of both federal administrative practices and the U.S. Constitution’s separation of powers principles. The accusation extends to Treasury Secretary Scott Bessent, criticized for altering departmental policies that have historically protected sensitive information to permit DOGE access to payment systems.
Connecticut Attorney General William Tong voiced concerns over what the acquired data from Treasury systems was being used for, remarking on the severity of the breach, “This is the largest data breach in American history.”
Critics, including legislators and advocacy groups, demand further investigation and have initiated additional legal actions to restrict DOGE’s review of the payments system. Amid these unfolding events, the Treasury Department maintains that their review is solely for assessing the integrity of the system without altering it.
The evolving legal battles and nationwide concerns underscore the complexities and potential risks of government data access and privacy in the digital age.
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