A federal judge temporarily blocked billionaire Elon Musk’s government efficiency team from accessing U.S. payment processing systems early Saturday, citing concerns over potential improper disclosure of sensitive information.
U.S. District Judge Paul Engelmayer in Manhattan issued the ruling following a lawsuit filed late Friday by a coalition of 19 Democratic state attorneys general. The lawsuit argued that Musk’s Department of Government Efficiency (DOGE) had no legal authority to access Treasury Department systems, which handle trillions of dollars in payments.
The ruling also extended to other political appointees from President Donald Trump’s administration.
Musk reacted to the decision on his social media platform, X, calling it “absolutely insane!” He stated that the Treasury Department and DOGE had agreed to require all government payments to include a comment explaining the rationale, as well as a categorization code. Additionally, Musk advocated for frequent updates to a “do-not-pay” list to prevent unauthorized payments.
According to the lawsuit, Musk and his team could disrupt funding for federal programs like health clinics, preschools, and climate initiatives, potentially allowing Trump to use financial data for political purposes.
The attorneys general warned that DOGE’s access posed “huge cybersecurity risks,” endangering state funding and residents’ financial security. They requested a temporary restraining order to block DOGE’s access to Treasury systems.
Judge Engelmayer, appointed by former President Barack Obama, found the states’ claims “particularly strong,” justifying emergency intervention until a further hearing on February 14.
“The new policy presents risks of disclosing sensitive and confidential information and increases the likelihood of hacking,” Engelmayer wrote.
New York Attorney General Letitia James, whose office is leading the case, welcomed the ruling, emphasizing that “nobody is above the law.” She said the court confirmed that Musk and his associates would not have unchecked access to Americans’ financial data.
“We knew the Trump administration’s decision to grant this access was illegal, and this morning, a federal court agreed,” James stated.
Engelmayer’s order prohibits political appointees, special government employees, and non-Treasury personnel from accessing Treasury payment systems. It also requires anyone previously granted access to delete any copied or downloaded data immediately.
The White House and Treasury Department have not yet commented on the ruling.
Trump had appointed Musk to lead DOGE in an effort to identify government fraud and waste. However, Democrats and advocacy groups have expressed alarm over Musk’s influence, accusing him of overstepping his authority by targeting federal agencies and workers.
Treasury Secretary Scott Bessent, a Trump appointee, assured this week that Musk would not control the department’s payment systems and that any payment halts would be decided by other agencies.
