Judge extends temporary block against Elon Musk's access to Treasury Department records
WASHINGTON − A federal judge in New York on Friday extended the temporary block against Elon Musk, President Donald Trump’s appointee to look for government waste, from gaining access to confidential government information.
New York Attorney General Letitia James led a lawsuit from 19 states seeking to continue blocking Musk's Department of Government Efficiency's access to Treasury Department computer systems. U.S. District Judge Jeannette Vargas extended the order Friday that another judge put in place Feb. 8 but did not say when she would rule on a more permanent preliminary injunction.
The case was one of three featuring challenges from states and unions against Musk's efforts to root out waste, fraud and abuse in the federal government.
In Washington, D.C., U.S. District Judge Tanya Chutkan considered a restraining order in a case brought by 14 states against billionaire Musk as head of DOGE for allegedly creating havoc in the federal bureaucracy. The complaint alleges Musk is operating without legal authorization from Congress.
The president "has delegated virtually unchecked authority to Mr. Musk without proper legal authorization from Congress and without meaningful supervision of his activities," according to the complaint filed Thursday.
Also in the nation's capital, U.S. District Judge John Bates heard more arguments in the case brought by unions opposed to Musk's Department of Government Efficiency gaining access to sensitive government records at the Department of Health and Human Services, the Labor Department and the Consumer Financial Protection Bureau.
Bates had refused to block Musk's team last week by ruling the unions − the AFL-CIO; the American Federation of Government Employees; the American Federation of State, County and Municipal Employees and the Service Employees International Union − couldn't show they were harmed. But the unions made another request for a temporary restraining order. The judge, an appointee of former President George W. Bush, didn't say when he would issue a decision.
AG James said states are 'defending the Constitution'
In the New York case, James gave a news conference before a hearing saying state attorneys general refuse to “bow to the president or Elon Musk.”
“They would like for us to engage in an ideological litmus test and that’s why they’ve paused funds,” James said. “It is unacceptable, unconstitutional.”
James said states “have a unique responsibility to ensure that the Constitution is followed.”
“We’re defending the Constitution, she said. “We took an oath to the Constitution, not to a man.”
What do the lawsuits against Elon Musk and DOGE aim to do?
Musk’s Department of Government Efficiency is searching for ways to cut federal spending. But unions and states argue Musk and his staffers aren’t authorized to access the Treasury Department's central payment system. Musk's team could block federal funds to states for health clinics, preschools, climate initiatives, and other programs, the states contend.
Musk and Trump have blasted the court decisions temporarily blocking the new Republican administration's policies. Musk called for the impeachment of federal judges who oppose Trump.
But unions argued that Musk's team got access to sensitive government information without the proper authority and training to protect privacy required by federal law.
“This case presents really important questions about whether the sensitive data of millions of Americans has been treated with due care,” said Aman George, a lawyer at the advocacy group Democracy Forward Foundation who argued for the unions.
Bates sounded skeptical about blocking the Musk team’s access if they are government workers. The judge also questioned why he should assume a Musk staffer from one of his private companies who now works for DOGE would look for access to Occupational Safety and Health Administration investigations, for example.
“I don’t understand where the problem would be, where the violation of law would lie,” he said.
But Bates also questioned how the Trump administration set up DOGE under a statute that allowed it to avoid scrutiny under the Freedom of Information Act while still allowing it to share workers among government agencies.
“It seems to be a little bit of an odd scent to that,” Bates said.
What is the New York case against Elon Musk about?
Vargas took over the DOGE case from U.S. District Judge Paul Engelmayer, who temporarily blocked Musk's team on Feb. 8 from accessing Treasury systems.
The states argued that Musk and his team aren't authorized to access the Treasury Department's central payment system and could jeopardize the security of confidential information. They also argue Musk's team could block federal funds to states for health clinics, preschools, climate initiatives, and other programs.
But government lawyers argued the "unprecedented and unsupported" lawsuit sought to prevent the executive branch from implementing the president's policies. Musk's team seeks access to the Bureau of the Fiscal Services, which handles 1.2 billion transactions and $5 trillion in spending.
Thomas Krause, a member of the Musk's team who works at the Treasury Department, is trying to find ways to make technology more efficient and more responsive to Trump's policy goals, the government lawyers said. Krause's mandate is to update and modernize the systems to better identify improper and fraudulent payments, the lawyers said.
Marko Elez, another Musk team member at Treasury, was assigned to work with engineers on information technology to improve efficiency through accounting, financing, collection and payment services, government lawyers said.
The states' lawsuit said DOGE's access to the systems could pose cybersecurity risks and disrupt federal funding for health clinics, preschools and other programs.
Musk had called Engelmayer's ruling "absolutely insane!" in a post on his social media platform X. The billionaire said the Treasury Department and DOGE had agreed to require all outgoing government payments to include a rationale in the form of a comment and to have a categorization code.
Does Elon Musk have 'unchecked power' over the government?
In the case led by New Mexico, 14 states argue that Musk's "unchecked power" over federal agencies violates the Appointments Clause in the U.S. Constitution.
That clause requires Congress establish an office before the president can fill it and states that the Senate must confirm a nominee to an office created by law. The states claim that the power Musk has to eliminate the federal workforce and entire departments is unconstitutional.
"The sweeping authority now vested in a single unelected and unconfirmed individual is antithetical to the nation’s entire constitutional structure," according to the complaint.
On Friday, the states sought an emergency temporary restraining order to prevent Musk and DOGE from cancelling government contracts or taking steps to dismantle agencies created by law.
Chutkan declined to rule on the states' proposed temporary restraining order after the Trump administration attorney argued it was overly broad. The states may file a modified request for a temporary restraining order on Saturday.
(This story has been updated with more information.)