A federal judge has issued a preliminary injunction blocking Elon Musk’s Department of Government Efficiency (DOGE) from accessing sensitive Treasury Department records. U.S. District Judge Paul A. Engelmayer made this ruling on February 8 in response to a lawsuit filed by 19 Democratic state attorneys general against the Trump administration. 

The injunction prohibits DOGE from accessing Treasury Department records containing sensitive personal data, including Social Security numbers and bank account information for millions of Americans. Judge Engelmayer also ordered Musk and his team to immediately destroy any copies of materials downloaded from Treasury Department systems since January 20.

The Treasury Department handles trillions of dollars annually in tax refunds, Social Security benefits, and veterans’ benefits. Treasury Secretary Scott Bessent authorized DOGE representatives to access the system, which manages over $6 trillion annually in federal payments, including Social Security, Medicare benefits, and tax refunds.

Critics argue that granting access to Musk, a “special government employee,” and DOGE, which is not an official government agency, violates federal regulations. Connecticut Attorney General William Tong described the situation as “the largest data breach in American history”.

The lawsuit alleges that Treasury Secretary Scott Bessent changed longstanding policies for protecting sensitive information to allow DOGE access to payment systems. Judge Engelmayer’s ruling cited concerns about potential exposure of confidential information and increased vulnerability to cyberattacks.

The 19 state attorneys general justified their lawsuit against the Trump administration and DOGE on several grounds:

1. Unauthorized access to sensitive information: The lawsuit alleges that the Trump administration illegally granted Elon Musk and DOGE access to the Treasury Department’s central payment system, which contains Americans’ sensitive personal information, including bank account details and Social Security numbers.
2. Violation of federal law: The attorneys general argue that the expanded access to the Bureau of Fiscal Services (BFS) payment system violates federal law, which limits access to a select group of career civil servants with appropriate security clearances.
3. Constitutional concerns: The lawsuit claims that the access violates the separation of powers outlined in the U.S. Constitution and exceeds the Treasury Department’s legal authority.
4. Potential disruption of federal funds: The attorneys general express concern that DOGE’s access could allow them to block or disrupt federally approved payments for essential services like healthcare, childcare, and other critical programs.
5. Privacy rights violation: The lawsuit asserts that the decision disregards legal responsibilities to safeguard personal and financial data, violating the privacy rights of federal fund recipients, including states, veterans, retirees, and taxpayers.
6. Administrative law violations: The case claims that the access contravenes federal administrative law.

“President Trump has allowed an unelected billionaire to infiltrate key federal agencies and systems that store Social Security numbers, banking information, and other extremely sensitive data for millions of people,” said New Jersey Attorney General Platkin. “These unlawful actions have put at risk the financial and information security of our State and residents and Americans across the country, and they are completely unacceptable. Americans never elected Elon Musk, and our lawsuit seeks to protect New Jerseyans from this unprecedented breach of privacy, and of the laws of our nation. I will never back down from a fight to protect our residents from harm — even if it is against the richest man in the world.”

A hearing on the matter is scheduled for February 14, 2025.

Judge Engelmayer’s ruling has significant implications for Musk’s Department of Government Efficiency (DOGE):

1. Limited Access to Sensitive Data: The preliminary injunction blocks DOGE from accessing Treasury Department records containing sensitive personal data, including Social Security numbers and bank account information for millions of Americans.
2. Destruction of Downloaded Materials: Judge Engelmayer ordered Musk’s team to immediately destroy any copies of materials downloaded from Treasury Department systems since January 20.
3. Scrutiny of DOGE’s Authority: The case raises questions about DOGE’s legal standing and authority to access and potentially alter government systems, with critics arguing that it violates federal regulations and constitutional principles.
4. Potential Operational Constraints: The ruling may limit DOGE’s ability to carry out its stated mission of identifying and eliminating wasteful government spending, particularly in areas involving sensitive financial data.
5. Increased Oversight: The legal action is likely to result in heightened scrutiny of DOGE’s activities and methods, potentially leading to more transparency requirements.