Judge blocks Musk's access to US Treasury systems, orders data destruction

19 Democratic state attorneys general filed a lawsuit with the US Supreme Court against DOGE arguing granting Musk's team access to sensitive govt systems violates constitution and federal laws

A US federal judge has issued an emergency order restricting access by Elon Musk’s government efficiency initiative to the Treasury Department’s payment and data systems, citing concerns over security risks and potential misuse of federal funds. The ruling came in response to a lawsuit filed by 19 Democratic state attorneys general, who argue that President Donald Trump’s move to grant Musk and his team access to highly sensitive government systems violates constitutional safeguards and federal laws.

 

Judge halts access, orders data destruction

On Saturday, US District Judge Paul A Engelmayer temporarily blocked officials associated with Musk’s Department of Government Efficiency (DOGE) from accessing the Treasury Department’s critical financial infrastructure, which handles federal disbursements such as Social Security benefits, veterans' payments, and federal salaries.

 

 

The judge also ordered that any DOGE-affiliated officials who had accessed the system since January 20 (the day President Trump took office) must destroy any copies of federal data they may have obtained. Additionally, the order bars further access to these sensitive systems until a final ruling is made.

 

Judge Engelmayer has also directed President Trump and Treasury Secretary Scott Bessent to justify the access granted to Musk’s team in a court hearing scheduled for February 14, which will be overseen by US District Judge Jeannette A Vargas.

 

Data security and funding disruptions

The lawsuit is spearheaded by New York Attorney General Letitia James alongside 18 other Democratic attorneys general. The petitioners argue that Musk’s unrestricted access to federal systems poses grave security risks and threatens the lawful distribution of government funds.

 

The attorneys general claim that DOGE, a programme aimed at cost-cutting, has overstepped its mandate by attempting to halt federal funds to certain recipients. The lawsuit points to Musk’s recent social media statements, where he suggested that DOGE would aggressively freeze federal spending on programmes he deemed unnecessary.

 

In a statement issued by the Office of the New York State Attorney General, James said, “As the richest man in the world, Elon Musk is not used to being told ‘no’, but in our country, no one is above the law.”

 

“President Trump does not have the power to give away Americans’ private information to anyone he chooses, and he cannot cut federal payments approved by Congress. Musk and DOGE have no authority to access Americans’ private information and some of our country’s most sensitive data. I am taking action to keep our information secure, and to prevent any unconstitutional freeze on essential funding that Americans rely on every day,” James added.

 

DOGE and the Trump Administration

DOGE, despite being branded as a government efficiency programme, is not a formal federal agency. According to the lawsuit, DOGE’s interventions have already caused disruptions, including: 

- Blocking federal funds meant for health clinics, preschools, and climate initiatives, despite the money being approved by Congress.

 

- Attempting to shut down the US Agency for International Development (USAID), a key foreign aid agency. A federal judge in Washington recently halted an effort to place 2,200 USAID employees on leave and withdraw officials from overseas posts. 

- Gaining access to the Treasury Department’s payment system, which processes 90 per cent of US government disbursements - totalling $6.75 trillion in the last financial year.

 

Judge Vargas will hear arguments on February 14, when the Trump administration must justify its decision to grant DOGE access to critical financial and data information.