(NEW YORK) — A federal judge in Manhattan on Friday will consider whether to continue blocking Elon Musk’s Department of Government Efficiency from accessing sensitive Treasury Department payment systems as part of the Trump’s administration’s efforts to cut federal spending.
The attorneys general of 19 states have argued that allowing Musk’s associates to access the payment system would be a “huge cybersecurity risk” and potentially allow the Trump administration to unlawfully “block federal funds from reaching beneficiaries who do not align with the President’s political agenda.”
“All of the States’ residents whose [personal identifiable information] and sensitive financial information is stored in the payment files that reside within the payment systems are at risk of having that information compromised and used against them,” the lawsuit said.
The lawsuit comes as Musk’s cost-cutting troops have gained access to at least 16 federal agencies, with Trump recently signing an executive order giving DOGE additional authority to help carry out massive layoffs across the government as part of his campaign pledge to trim the federal bureaucracy.
The lawsuit — filed by New York Attorney General Letitia James and 18 other state attorneys general — raised particular concern about unvetted DOGE employees accessing sensitive government records including social security numbers, bank information, and federal tax returns. According to the lawsuit, Musk being able to access the Bureau of Fiscal Services — which serves as the country’s checkbook by dispersing trillions in funding — could allow Musk to cut off government spending from the source.
In a court order last weekend, a federal judge in New York temporarily blocked the Trump administration from allowing individuals associated with DOGE to access the Treasury department records and payment systems.
“The Court’s firm assessment is that, for the reasons stated by the States, they will face irreparable harm in the absence of injunctive relief. That is both because of the risk that the new policy presents of the disclosure of sensitive and confidential information and the heightened risk that the systems in question will be more vulnerable than before to hacking,” U.S. District Judge Paul Engelmayer wrote, prompting a Mush to blast the judge and Vice President JD Vance to question the legality of the order.
While the Trump administration challenged the temporary order, U.S. District Judge Jeanette Vargas — a Biden-nominated judge who will hear the case going forward — reiterated that there was “sound factual basis” for the temporary restraining order when it was imposed late last week.
Judge Vargas will consider granting a preliminary injunction to block DOGE’s access to the systems at Friday’s hearing.
Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Rhode Island, Vermont and Wisconsin have signed onto the lawsuit.
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