Judge Blocks Elon Musk’s Team from Accessing Treasury Payment System

AU.S. federal judge has temporarily blocked Elon Musk’s Department of Government Efficiency (DOGE) from accessing a sensitive Treasury Department payment system that manages tax refunds, Social Security benefits, disability payments, and federal employees’ salaries.

U.S. District Judge Paul Engelmayer issued the emergency order, citing concerns that DOGE’s access posed a risk of “irreparable harm”, including potential data breaches and unauthorized disclosures of confidential financial information. He also ordered that any data obtained by DOGE since January 20 be immediately destroyed.

Musk, has been aggressively seeking access to sensitive U.S. government systems, including the Treasury Department’s payment infrastructure, to monitor and potentially block spending deemed wasteful. His team gained access to the Treasury’s payment system, which distributes trillions of dollars in entitlements and refunds, and also attempted to take control of USAID, aiming to dismantle the foreign aid agency.

The ruling on Musk’s access to the Treasury Department payment system follows a lawsuit filed by New York Attorney General Letitia James and 18 other Democratic state attorneys general, arguing that DOGE’s access was unlawfully granted by the Trump administration. The suit alleges that Musk’s team, which includes “special government employees” with limited vetting, could potentially freeze federal payments or misuse sensitive financial data.

The Treasury payment system is essential to the operations of the U.S. federal government, processing trillions of dollars annually across more than 250 agencies. Critics argue that DOGE’s access could disrupt critical public services, including healthcare and veterans’ benefits.

The court ruling has escalated tensions over DOGE’s broader efforts to reduce government spending by scrutinizing federal agencies. While Musk and his supporters claim DOGE is targeting inefficiencies, opponents—including state officials and advocacy groups—fear it could interfere with legally mandated payments and compromise data security.

The next hearing is scheduled for February 14. In the meantime, Engelmayer has restricted Treasury access to only vetted civil servants with security clearances, explicitly barring Musk’s team and political appointees.

Additionally, Congressional Democrats and labor unions are pushing for an official Treasury investigation into DOGE’s activities, questioning its legality and potential risks to national financial security.