USA: A federal judge has blocked Elon Musk’s newly formed efficiency team from accessing certain Treasury Department records, following a lawsuit filed by 19 mostly Democrat-led states. The lawsuit, submitted late Friday in New York, accuses President Donald Trump and Treasury Secretary Scott Bessent of violating federal law by permitting the temporary Department of Government Efficiency access to sensitive financial data containing personal information on millions of Americans. The judge’s order, issued early Saturday, prevents political appointees and non-Treasury personnel from obtaining such records.
US District Judge Paul Engelmayer ruled that Trump and Bessent’s authorization of the efficiency team’s access to Treasury data was unlawful and posed risks to citizens’ privacy. The judge’s decision also mandates that any Treasury information already accessed by unauthorized personnel since January 20 be deleted immediately. Those who obtained Treasury records illegally must “immediately destroy any and all copies of material downloaded from the Treasury Department’s records and systems,” according to Engelmayer’s order. A court hearing on the matter is set for February 14.
The lawsuit is part of a broader effort to challenge the Trump administration’s handling of federal data access. Legal experts argue that granting an external efficiency team access to Treasury records without congressional oversight could set a dangerous precedent. The case also raises concerns about the potential political use of sensitive financial data, especially with a presidential election approaching. The administration has defended the initiative, stating it aims to reduce government waste and improve efficiency in federal spending.
Additionally, unions have filed a separate complaint against the administration, alleging that the plan bypasses standard governmental hiring and data protection procedures. If the legal challenges succeed, they could delay Trump’s broader initiative to overhaul government operations and spending. While the White House has yet to comment on the ruling, the case is expected to be a key legal battle over executive authority and financial privacy in the coming months.
