A federal judge has issued a ruling blocking Elon Musk’s Department of Government Efficiency (Doge) from accessing personal financial data in Treasury Department records, following a lawsuit filed by 19 state attorneys general.
US District Judge Paul A. Engelmayer granted a preliminary injunction on Saturday, prohibiting Musk’s team from further accessing the data and ordering them to immediately destroy any copies of the records. The move is a significant blow to the controversial initiative, which aimed to cut costs within the federal government.
The legal action follows concerns raised by the state attorneys general that allowing Musk’s initiative, led by Musk as a “special government employee,” to access these records violated federal law. Doge is not an official government department, and its involvement raised fears about the privacy of sensitive information.
On social media platform X, Musk responded to the ruling, calling it “absolutely insane.” He questioned how the government could effectively combat fraud and waste of taxpayer funds without access to financial data.
The lawsuit was filed against the Trump administration, Treasury Department, and Treasury Secretary Scott Bessent. The attorneys general argued that the new policy posed risks to the privacy of millions of Americans and the security of Treasury systems, which could be vulnerable to cyber threats.
Judge Engelmayer’s ruling emphasized that the states would suffer “irreparable harm” if the injunction were not granted. His order highlighted concerns about the potential disclosure of confidential information and the increased risk of hacking due to the policy’s implementation.
The injunction prevents access to Treasury records containing personally identifiable or confidential information by special government employees, political appointees, and others from outside the department. Only civil servants who require access for their work at the Bureau of Fiscal Services and have passed background checks are allowed to review the records. The ruling also mandates that any individuals with unauthorized access destroy copies of the sensitive information immediately.
The restrictions will remain in place until a follow-up hearing scheduled for February 14.
New York Attorney General Letitia James, a key figure in the lawsuit, expressed concerns over the unprecedented access granted to Musk and Doge. She noted that her office had received numerous complaints from New Yorkers who feared the loss of privacy and the impact on vital community funding due to Musk’s involvement.
Musk’s Doge initiative has been involved in significant cost-cutting measures during the Trump administration, including controversial reforms at the US Agency for International Development (USAID), which manages billions of dollars in global aid.
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