A federal judge has issued an order preventing Elon Musk’s Department of Government Efficiency from accessing Treasury Department financial records, following concerns over privacy and legal authority. The ruling, made on February 8, 2025, temporarily halts the department’s ability to review confidential government transactions while legal proceedings continue.
The case was brought forward by 19 state attorneys general, who argued that the agency, a cost-cutting initiative led by Musk, was improperly given access to sensitive financial data. The records in question include tax returns, Social Security benefits, and federal employee salaries. The lawsuit contends that this access violates federal law, as the department is not a recognized government agency and Musk, classified as a special government employee, should not have been authorized to handle personal financial data.
Judge Paul Engelmayer, who issued the ruling, stated that the policy could expose private information and increase cybersecurity risks. He ordered that any records already obtained must be destroyed immediately and prohibited any further access unless legally granted. The restrictions will remain in place until the next court hearing scheduled for February 14, 2025.
Musk responded to the ruling on social media, calling it an unreasonable decision. He argued that reviewing government financial data is essential to eliminating fraud and ensuring taxpayer money is used efficiently. He also stated that his department had introduced measures such as categorization codes for payments and an updated do-not-pay list to prevent funds from being misused.
New York Attorney General Letitia James, one of the attorneys general leading the case, welcomed the ruling. She stated that the Trump administration had improperly granted access to Musk’s agency, raising concerns over potential misuse of financial data. According to her, the case reflects broader worries about transparency and data security within the government.
The Department of Government Efficiency has already been involved in various cost-cutting initiatives, including reducing budgets for multiple federal agencies. Some critics argue that its actions go beyond what should be allowed for a temporary department, with concerns that its reach extends into areas traditionally managed by career government employees. Lawmakers opposed to the department’s role worry that its access to financial systems could be used to cut funding for essential programs, such as healthcare and education.
Security risks have also been a key issue in this case. The lawsuit warns that placing sensitive financial data in the hands of an entity with limited oversight could increase the possibility of data breaches or cyberattacks. Attorneys general involved in the lawsuit have stated that strict rules exist for a reason and that allowing non-government employees access to Treasury systems presents an unnecessary risk.
This court ruling is the latest in a series of legal battles surrounding Musk’s involvement in federal government operations. Last week, a judge blocked an effort by the Trump administration to place thousands of U.S. Agency for International Development employees on leave. Additional lawsuits have challenged the authority of Musk’s agency over federal budgets and employment decisions.
The White House has dismissed the ruling as an example of judicial interference. A spokesperson for the administration criticized the decision, arguing that opponents of the Department of Government Efficiency are attempting to block reforms aimed at reducing wasteful spending.
With another hearing set for February 14, the legal dispute over access to financial records remains unresolved. The case could have far-reaching consequences for government transparency, data security, and the role of temporary agencies in federal decision-making.
This image is the property of The New Dispatch LLC and is not licenseable for external use without explicit written permission.
