New York Attorney General Letitia James, leading a coalition of 19 states, has won a preliminary victory against the Trump administration and a group known as the “Department of Government Efficiency” (DOGE). The lawsuit, filed late Friday, aimed to prevent a team of special employees, headed by Elon Musk, from accessing sensitive data from the Treasury Department. Shortly after the lawsuit was filed in the U.S. District Court for the Southern District of New York, the plaintiffs were granted a temporary restraining order, blocking such access.
The court order not only prevents the Musk-led team from accessing any Treasury Department payment records, payment systems, or any other data systems containing personal and confidential financial information, but also mandates the destruction of any copies of documents previously downloaded.
James expressed her concern over the unprecedented access to personal data, state bank account details, and other sensitive information that Musk and his DOGE team had gained. She stated that the decision by the Trump administration to grant this access to unauthorized individuals was illegal, a sentiment echoed by a federal court.
Despite its name, DOGE is not an official federal department. It is a temporary organization established by President Donald Trump via an executive order. Its mission is to modernize federal technology and software to enhance efficiency and productivity by reducing the number of federal workers and cutting spending. The organization falls under the Executive Office of the President, with its administrator reporting to the White House chief of staff.
Earlier this month, DOGE employees were granted access to a payment system used by the Treasury. This system, the Bureau of Fiscal Services (BFS), is responsible for disbursing a significant amount of federal funds, including social security benefits, veteran’s benefits, childcare tax credits, federal employee wages, and federal tax refunds. The decision to grant DOGE direct access to the system sparked controversy and raised numerous questions.
The plaintiffs suggested political retribution as a possible motive. They alleged that one of DOGE’s objectives was to block federal funds from reaching beneficiaries who did not align with the President’s political agenda. The lawsuit also highlighted the sensitive nature of the data and previous efforts to protect it.
The situation changed when Treasury Secretary Scott Bessent allowed DOGE into the system. The temporary employees claimed they needed access to the sensitive data to conduct a review of the system. However, the states argued that this was a pretext, and that DOGE wanted access to control certain payments, which they claimed would cause irreparable harm.
U.S. District Judge Paul A. Engelmayer sided with New York and the other state plaintiffs, stating that they would face irreparable harm without injunctive relief due to the risk of sensitive and confidential information disclosure and increased vulnerability to hacking. A hearing on the court’s order is scheduled for Valentine’s Day.
James welcomed the temporary halt, reiterating that no one is above the law and expressing relief that Musk and his associates would not have unrestricted access to personal information while the lawsuit proceeds.