A federal judge issued a preliminary injunction early Saturday, preventing Elon Musk’s Department of Government Efficiency (DOGE) from accessing Treasury Department data containing sensitive personal information, including Social Security and bank account numbers, belonging to millions of Americans.
U.S. District Judge Paul A. Engelmayer granted the injunction following a lawsuit filed by 19 Democratic state attorneys general against President Donald Trump in a New York City federal court. The lawsuit claims the Trump administration violated federal law by granting DOGE access to the Treasury’s central payment system.
This payment system processes tax refunds, Social Security and veterans’ benefits, and other payments totaling trillions of dollars annually, managing a vast network of Americans’ personal and financial data.
Judge Engelmayer, an Obama appointee, also mandated the immediate destruction of all copies of Treasury Department data downloaded since January 20th by anyone barred from accessing this sensitive information.
A hearing is scheduled for February 14th.
The White House did not immediately respond to a request for comment on the lawsuit.
DOGE, established to identify and eliminate wasteful government spending, has sparked controversy. Its access to Treasury records and inspection of government agencies has raised concerns about Musk’s growing power, while supporters praise its efforts to curb government spending.
Musk has mocked criticism of DOGE on his X platform, claiming it is saving taxpayers millions of dollars.
New York Attorney General Letitia James, whose office filed the suit, highlighted security risks and the potential for illegal freezes on federal funds posed by DOGE’s access to Treasury data.
“This unelected group, led by the world’s richest man, is not authorized to have this information, and they explicitly sought this unauthorized access to illegally block payments that millions of Americans rely on, payments for health care, child care and other essential programs,” James stated in a Friday video message.
James argued that the President lacks the authority to release Americans’ private information or halt federally-approved payments.
Joining New York in the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin.
The suit alleges that DOGE’s access could interfere with Congressionally-approved funding, exceeding the Treasury Department’s authority. It further argues that this access violates federal administrative law and the Constitution’s separation of powers.
It also accuses Treasury Secretary Scott Bessent of altering the department’s data protection policies to grant DOGE access to its payment systems.
“This decision failed to account for legal obligations to protect such data and ignored the privacy expectations of federal fund recipients,” including states, veterans, retirees, and taxpayers, the lawsuit states.
Connecticut Attorney General William Tong emphasized the uncertainty surrounding DOGE’s use of the Treasury data.
“This is the largest data breach in American history,” Tong said in a Friday statement. “DOGE is an unlawfully constituted band of renegade tech bros combing through confidential records, sensitive data and critical payment systems. What could go wrong?”
The Treasury Department maintains that the review aims to assess system integrity and that no changes are being implemented. Sources familiar with the matter, speaking anonymously, indicated that Musk’s team initially sought to suspend payments from the U.S. Agency for International Development, which Trump and Musk aim to dismantle.
Separately, Democratic lawmakers are requesting a Treasury Department investigation into DOGE’s access to the payment system.
Labor unions and advocacy groups have also filed lawsuits to block the payment system review, citing concerns about its legality. A Washington judge temporarily restricted access for two employees with “read only” privileges.
Associated Press writer Dave Collins in Hartford, Connecticut, contributed to this report.