Two unions and one advocacy group have filed a lawsuit to prevent billionaire Elon Musk‘s Department of Government Efficiency (DOGE) from accessing the highly sensitive U.S. Treasury payment system, which manages Social Security, Medicaid and other government operations.
The lawsuit, filed in federal court in Washington, argues that Musk’s team is using the system in violation of multiple privacy laws, including 1974’s Privacy Act, and other regulations that dictate who is authorized to access the network.
The Alliance for Retired Americans, the American Federation of Government Employees (AFGE) and the Service Employees International Union (SEIU) are seeking a restraining order to keep DOGE out of the system. Scott Bessent, President Donald Trump‘s Secretary of the Treasury, the Department of the Treasury and
Bureau of the Fiscal Service were named as defendants in the civil action suit.
“Granting DOGE-affiliated individuals full, continuous, and ongoing access to that information for an unspecified period of time means that retirees, taxpayers, federal employees, companies, and other individuals from all walks of life have no assurance that their information will receive the protection that federal law affords” the lawsuit alleges.
Newsweek has emailed the Treasury Department on Monday night for comment.
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Why It Matters
Access to government payment systems would greatly boost DOGE’s aim of cutting down on federal government spending. Trump initially ordered the U.S. Office of Management and Budget to freeze federal grants and loans, only to later reverse the memo, meaning the administration is looking for other ways to stop cash flow in the short term.
Musk is working as a “special government employee,” a White House Official told the AP on Monday. He reportedly does not receive a paycheck for his work.
What To Know
The new access, approved by Treasury Secretary Scott Bessent on Friday, gives Musk and his team entry into a system responsible for trillions of dollars in government payments, including Social Security checks and tax refunds.
DOGE’s role, which was previously focused on reducing the number of federal workers, slashing programs, and cutting regulations, now extends to scrutinizing taxpayer transactions.
Analysts and commentators have spoken out against Musk and Doge’s new access to Treasury Department data. Washington Senator Patty Murray said during a press conference on Monday that she and other top Democrats are “pulling the fire alarm” with Senate procedure over the recent move.
The unions and advocacy group are represented in the new lawsuit by Public Citizen Litigation Group and State Democracy Defenders Fund.
The complaint alleges that Bessent took punitive actions against an official who attempted to safeguard the data from unauthorized access. In addition, the suit alleges that DOGE was granted unrestricted access to this sensitive information that should have been protected.
“Within a week of being sworn in as Treasury Secretary, Mr. Bessent placed that civil servant on leave and granted DOGE-affiliated individuals full access to the Bureau’s data and the computer systems that house them,” the suit states.
What People Are Saying
Elon Musk, Saturday on social media: “The DOGE team discovered, among other things, that payment approval officers at Treasury were instructed always to approve payments, even to known fraudulent or terrorist groups. They literally never denied a payment in their entire career. Not even once.”
Richard Fiesta, executive director of the Alliance for Retired Americans, wrote in a statement: “We are outraged and alarmed that the Trump Administration has allowed so-called DOGE staff to violate the law and access millions of older Americans’ sensitive personal and financial data. Seniors are already the most vulnerable Americans to fraud and scams, with FBI data showing losses of $3.4 billion in 2023 alone. We urge the court to quickly act to stop this unlawful theft of our data.”
What Happens Next
Trump told reporters Monday in the Oval Office that Musk “has some very good ideas” but said that he has the final say over what happens.
“Elon can’t do and won’t do anything without our approval,” Trump said. “He reports in.”
Senate Democratic Leader Chuck Schumer is calling on the Treasury Secretary to revoke the Musk team’s access to the Treasury Department’s payment system.
Update 02/03/25 8:01 p.m. ET: This article has been updated with additional information.
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