On February 8, Reuters reported that a federal judge temporarily barred Elon Musk’s government efficiency team from accessing government systems used for processing trillions of dollars in payments. The decision, issued early Saturday by U.S. District Judge Paul Engelmayer in Manhattan, was based on concerns that sensitive information could be improperly disclosed. The ruling followed a lawsuit filed late Friday by a coalition of Democratic attorneys general from 19 states, arguing that Musk’s Department of Government Efficiency lacks the legal authority to access U.S. Department of Treasury systems.
The ruling also extended to other political appointees from President Donald Trump’s administration.
Hours after the decision, Elon Musk criticized it as “absolutely insane!” in a post on his social media platform, X. He stated that the Treasury Department and the Department of Government Efficiency (DOGE) had agreed to implement new measures, including requiring a rationale in the form of a comment for all outgoing government payments, along with a categorization code.
Musk also emphasized the importance of frequently updating a do-not-pay list of entities ineligible for government payments, suggesting it should be revised at least weekly, if not daily.
Musk defended the changes on X, calling them “obvious and necessary” while emphasizing that they were being implemented by government employees, not by anyone from the Department of Government Efficiency (DOGE).
The lawsuit argued that Musk and his team could potentially disrupt federal funding for health clinics, preschools, climate initiatives, and other programs. It also raised concerns that former President Donald Trump could use the information to advance his political agenda.
Additionally, the state attorneys general warned that DOGE’s access to the system posed “huge cybersecurity risks,” potentially endangering vast amounts of funding for states and their residents. They requested a temporary restraining order to block DOGE’s access.
The judge, appointed by former Democratic President Barack Obama, stated that the states’ claims were “particularly strong,” justifying immediate action on their request for emergency relief. He granted the temporary restraining order pending a further hearing before another judge on February 14.
Judge Engelmayer explained his ruling, citing concerns over both the risk of sensitive and confidential information being disclosed and the heightened vulnerability to hacking that the new policy could create.
New York Attorney General Letitia James, who is leading the case, praised the ruling, emphasizing that no one is above the law. She stated that Americans nationwide had been alarmed by the DOGE team’s unrestricted access to their data. “We knew the Trump administration’s choice to give this access to unauthorized individuals was illegal, and this morning, a federal court agreed,” James said in a statement. “Now, Americans can trust that Musk – the world’s richest man – and his friends will not have free rein over their personal information while our lawsuit proceeds.”
Engelmayer’s order prohibits political appointees, special government employees, and government employees detailed from other agencies outside the Treasury Department from accessing its payment and data systems. The judge also ordered that anyone who had been blocked from access must immediately destroy any data they had copied or downloaded.
The White House and Treasury Department did not immediately respond to requests for comment.
Former President Trump had tasked Musk with leading DOGE to identify fraud and waste in government programs. Musk’s efforts have raised alarms among Democrats and advocacy groups, who argue that he is overstepping his authority by attempting to dismantle agencies responsible for vital government services and firing federal workers in large numbers.
Treasury Secretary Scott Bessent, a Trump appointee, stated this week that the department’s payment system would remain untouched by Musk and that any decisions to halt payments would be made by other agencies.
