In an effort to prevent Elon Musk's Department of Government Efficiency from gaining access to Treasury Department documents that hold private information like Social Security numbers and bank account numbers for millions of Americans, 19 Democratic attorneys general filed a lawsuit against President Donald Trump on Friday last week.
Filed in federal court in New York City, the lawsuit claims that the Trump administration violated federal law by giving Musk's team access to the Treasury Department's central payment system.
The payment system manages tax refunds, Social Security payments, veterans' benefits, and much more. It sends out trillions of dollars annually and contains a vast network of financial and personal information about Americans.
To identify and cut out what the Trump administration has determined to be unnecessary federal spending, Musk established his Department of federal Efficiency, or DOGE.
Supporters have applauded the concept of limiting bloated government finances, but critics have expressed wide concern over Musk's growing authority as a result of DOGE's access to Treasury documents and its review of other government agencies.
The case was filed by the office of New York Attorney General Letitia James, who stated that DOGE's access to the Treasury Department's data presents security issues and the potential for an illegal federal fund freezing.
“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 noted in a video message published by her office.
James, a Democrat who has been one of Trump's main opponents, stated that the president cannot stop federal payments that Congress has authorised or give out Americans' private information to anybody he wants. Moreover, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin are parties to the complaint.
The suit claims that DOGE's access to Treasury records may interfere with funding already approved by Congress, which would go beyond the Treasury Department's legislative power. The case further contends that DOGE access violates federal administrative law as well as the separation of powers doctrine of the US Constitution.
It also accuses Treasury Secretary Scott Bessent of altering the department's long-standing policy of safeguarding sensitive personally identifiable information and financial information in order to grant Musk's DOGE team access to the payment systems.
The Treasury Department has stated that the review is intended to assess the system's integrity and that no adjustments would be made. According to two people familiar with the situation, Musk's team began exploring ways to block payments made by the US Agency for International Development, which Trump and Musk are aiming to abolish. The two persons spoke to The Associated Press on the condition of anonymity for fear of punishment.