A federal judge has issued a preliminary injunction restricting Elon Musk’s Department of Government Efficiency (Doge) from accessing confidential financial records maintained by the U.S. Treasury Department, citing potential legal violations and risks to data security.
U.S. District Judge Paul A. Engelmayer ruled on Saturday that Musk and his team must immediately destroy any copies of the records obtained and are prohibited from further access until the next court hearing on February 14, 2025.
The decision follows a lawsuit filed by 19 state attorneys general against the Trump administration, Treasury Department, and Treasury Secretary Scott Bessent, arguing that granting Musk, a “special government employee,” access to such records was unlawful. The lawsuit contends that Doge, an initiative led by Musk but not recognized as an official government agency, should not have been granted access to sensitive financial data.
Judge Engelmayer’s order emphasized the “irreparable harm” posed by the unauthorized access, stating:
“The risk of disclosure of sensitive and confidential information is significant. Additionally, the systems in question may face an increased vulnerability to hacking if this policy is allowed to continue.”
The injunction specifically:
- Restricts the Treasury Department from granting access to personally identifiable financial records to political appointees, special government employees, or any non-civil service personnel.
- Limits access exclusively to verified civil servants at the Bureau of Fiscal Services who require the data for official duties.
- Mandates the immediate destruction of any records obtained under the disputed policy.
Musk has played an active role in federal policy decisions during Trump’s second term, particularly through Doge, which has led to significant cost-cutting measures at agencies such as USAID (U.S. Agency for International Development). The organization oversees billions in global aid, and its restructuring has drawn both praise and criticism.
While the White House, President Trump, and Elon Musk have yet to comment on the ruling, legal experts suggest that this case could set a precedent regarding the boundaries of private-sector involvement in federal financial oversight.
The next hearing on the matter is scheduled for February 14, 2025, where further arguments will be presented on whether the injunction should be made permanent.