Several U.S. states join forces to sue Musk for DOGE, blocking him from "interfering" with the Treasury Department payment system.

date
08/02/2025
avatar
GMT Eight
The alliance of US states led by the Democratic Party filed a lawsuit on Friday seeking to block the Government Efficiency Department (DOGE) led by Elon Musk from accessing the US Department of Treasury system used to process trillions of dollars in payments. The lawsuit, led by New York Attorney General Letitia James (Democrat), with a total of 19 states participating, claims that DOGE has no authority to access the Treasury system containing personal information of millions of Americans. The lawsuit alleges that Musk and his team may disrupt federal funding for projects such as medical clinics, kindergartens, and climate initiatives, with this information potentially being used by Republican President Donald Trump to advance his political agenda. Additionally, the Attorney General stated that DOGE's access to the system "poses significant cybersecurity risks, putting large sums of money for states and their residents in danger." Trump had previously authorized Musk to lead DOGE in identifying fraud and waste within the government, but this move has raised concerns among Democrats and advocacy groups. They believe Musk may be attempting to dismantle key government agencies responsible for critical projects and mass layoffs of federal employees, which is seen as an overreach of power. The lawsuit names Trump and the Treasury Department as defendants, with Attorneys General from states such as California, Illinois, Massachusetts, Washington, and New Jersey joining the lawsuit. In addition, several American unions have also filed lawsuits, claiming that Musk's team violated privacy laws by accessing the payment system. A federal judge on Thursday ordered the Treasury Department to restrict access for two "special government employees" and require their access to be read-only. Other lawsuits are seeking to block DOGE from accessing data from the Department of Labor and Department of Education. Treasury Secretary Scott Bessent, appointed by Trump, stated this week that the Treasury's payment system would not be influenced by Musk, with any decisions to stop payments being made by other agencies. However, New York and other states in the lawsuit on Friday argue that allowing DOGE access to the payment system violates federal law, which requires agencies to conduct a "privacy impact assessment" before using technologies to collect or disseminate information, and that this action illegally usurps Congress' power. States also accuse Trump of violating his constitutional duty to faithfully execute federal laws. The lawsuit seeks a temporary restraining order to prohibit DOGE from accessing the Treasury Department system during further litigation.

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