Judge Blocks Musk’s Team from Treasury Payment System Amid Security Concerns

A federal judge has temporarily restricted Elon Musk’s government efficiency team from accessing a critical Treasury Department payment system, citing the risk of “irreparable harm.”

The ruling, issued early Saturday by U.S. District Judge Paul Engelmayer, suspends access to a sensitive system responsible for distributing Americans’ tax refunds, Social Security benefits, disability payments, and federal employee salaries. The judge also ordered the destruction of any data obtained from the system since January 20, highlighting concerns about potential data breaches and the system’s vulnerability to hacking. A hearing on the matter is scheduled for February 14.

Legal Battle Over Government Access

The decision comes in response to a lawsuit filed by New York Attorney General Letitia James and 18 other state attorneys general against the Trump administration. The lawsuit challenges the administration’s Department of Government Efficiency (DOGE), a cost-cutting initiative led by Musk and staffed with young associates classified as “special government employees.”

The attorneys general argue that DOGE personnel were unlawfully granted access to the Treasury system, which was previously restricted to specific government employees. They warn that DOGE’s involvement poses a significant security risk to states and their residents.

Political Fallout and Broader Legal Challenges

The court order is the latest in a series of legal challenges against the administration’s efforts to restructure the federal government. On Friday, another judge temporarily blocked the administration’s attempt to dismantle the U.S. Agency for International Development (USAID). Additionally, a separate ruling halted a deadline for federal employees to accept buyouts under a controversial workforce reduction plan.

The administration’s approach has faced strong opposition from Democratic lawmakers, labor unions, and privacy advocates concerned about Musk’s access to sensitive government data. Critics argue that DOGE’s efforts to gain control over key government systems, including those related to federal employment, real estate, and digital infrastructure, could lead to political interference and security risks.

Concerns Over Payment System Control

At the center of the legal battle is the Treasury Department’s payment system, which services over 250 federal agencies and facilitates billions of dollars in payments each year. Critics fear the administration could use DOGE’s access to manipulate or withhold payments, adding further uncertainty to government operations.

“The conduct of DOGE members presents a unique security risk to the States and State residents whose data is held,” the lawsuit states.

With mounting legal challenges and bipartisan scrutiny, the administration’s push to overhaul federal operations faces increasing resistance. The upcoming February 14 hearing will be a critical moment in determining whether Musk’s team will regain access to the Treasury system—or face further judicial restrictions.

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