Federal judge blocks Elon Musk's DOGE access to critical Treasury payment system

2025-02-09 03:05:00

Abstract: Judge halts Musk-led team's access to Treasury payment system due to security risks. Order protects sensitive data; White House calls it "overreach".

A federal judge has temporarily restricted a government efficiency team led by Elon Musk from accessing a critical U.S. Treasury Department payment system, citing the risk of "irreparable harm." The injunction is designed to protect sensitive information and prevent the system from potential cyberattacks, ensuring the integrity of vital financial data.

The judge's order, issued early Saturday, temporarily suspends access to a sensitive payment system. This system is responsible for issuing tax refunds, Social Security benefits, disability payments, and federal employee salaries to American citizens. U.S. District Judge Paul Engelmayer ordered the destruction of any information downloaded since January 20 by anyone who had gained access to the payment system.

Judge Engelmayer stated that the new policy presents a risk of leaking sensitive and confidential information and increases the risk of related systems being hacked. A hearing on the matter has been scheduled for February 14, providing an opportunity to further examine the potential vulnerabilities.

The White House called Saturday's order "judicial overreach." White House spokesman Harrison Fields told CNN in a statement: "The performative government efficiency fully illustrates those who would rather use legal chicanery to delay desperately needed reforms than work with the Trump administration to root out waste, fraud, and abuse in government."

Judge Engelmayer's ruling is a response to a lawsuit filed by New York Attorney General Letitia James and the attorneys general of 18 other states against the Trump administration. The lawsuit alleges that a team led by Musk and composed of young employees classified as "special government employees" illegally gained access to the Treasury Department system, access previously limited to specific government employees.

Musk also defended the access in a social media post on Saturday, stating that DOGE and the Treasury Department "mutually agreed" on requirements involving government payments, including that "all outgoing government payments have payment classification codes, which is necessary for passing financial audit." Musk added: "The above super obvious & necessary change is being implemented by existing, long-term career government employees, not anyone from @DOGE. It is absurd that these changes didn't exist before!"

The Trump administration refers to the team as the Department of Government Efficiency (DOGE), aimed at significantly cutting government spending, but its attempts to access critical computer systems, including the Treasury Department payment system, have been opposed by others within the agencies. DOGE's actions have sparked a heated political debate and emergency court action, centering on its access to the system and the government's potential intention to arbitrarily halt payments.

The lawsuit states, "The actions of Doge members pose a unique security risk to data held by the states and state residents." The payment system serves more than 250 federal agencies and is a channel for a large volume of critical individual payments, making it essential to the operation of the U.S. government and the lives of millions of Americans.

The Trump administration's moves to cut the size of government have caused chaos, fear, and anger within the federal government, leading to multiple lawsuits that have prompted judicial intervention. Musk and his DOGE team have been trying to disrupt or access multiple government nerve centers, including departments responsible for the federal workforce, real estate portfolios, computer systems, and records management.

The Trump administration's initial moves to upend the federal government were most keenly felt at USAID, after the president froze most foreign aid. In a separate court ruling involving USAID late Friday, another federal judge ordered the Trump administration to halt its plan to place at least 2,200 of the agency's employees on administrative leave and required the temporary reinstatement of 500 employees who had already been suspended.