Judge Blocks Musk’s Access to Government Systems

By Nate Raymond (NSE:RYMD)

(Reuters) – A federal judge temporarily blocked billionaire Elon Musk’s government efficiency team from accessing systems processing trillions in payments, citing risks of sensitive information disclosure.

U.S. District Judge Paul Engelmayer in Manhattan issued the order after 19 Democratic state attorneys general filed a lawsuit arguing that Musk’s Department of Government Efficiency lacks legal authority to access U.S. Treasury systems. The ruling also affects other political appointees from President Trump’s administration.

Following the decision, Musk deemed it “absolutely insane!” in a post on X, his social media platform. He claimed that the Treasury and DOGE had agreed on requiring outgoing government payments to include a rationale and categorization code, along with a regularly updated do-not-pay list for certain entities.

The lawsuit asserted that Musk’s team could disrupt funding for essential services and that information could be misused for political purposes. The attorneys general highlighted the significant cybersecurity risks posed by DOGE’s potential access to these systems.

Engelmayer found the states’ claims compelling enough to grant temporary relief pending a further hearing on February 14. He expressed concerns over sensitive information disclosure and increased vulnerability to hacking.

New York Attorney General Letitia James welcomed the ruling, emphasizing that no one is above the law. She stated that the court’s decision affirmed the illegality of granting access to unauthorized individuals.

Engelmayer’s order specifically bars political appointees and others from accessing Treasury Department systems and commands immediate destruction of any copied or downloaded data.

The White House and Treasury did not comment on the ruling. Musk was appointed by Trump to lead DOGE in identifying government fraud and waste, but his actions have sparked significant concern among Democrats and advocacy groups about overreach.

Treasury Secretary Scott Bessent assured that Musk would not alter the department’s payment system and that decisions on payment suspensions would be handled by other agencies.