A federal judge has delivered a major legal blow to billionaire entrepreneur Elon Musk, blocking his Department of Government Efficiency (Doge) from accessing sensitive financial data held by the U.S. Treasury Department. The ruling comes amid growing concerns over privacy violations and potential misuse of government records.
U.S. District Judge Paul A. Engelmayer issued a preliminary injunction prohibiting Musk’s team from viewing or using personal financial data belonging to millions of Americans. The judge also ordered the immediate destruction of any copies of records obtained by Doge, a cost-cutting initiative Musk has been leading in President Donald Trump’s administration.
Legal Battle Over Treasury Data
The case erupted when 19 state attorneys general, all from Democratic-led states, sued the Trump administration for granting Doge access to Treasury Department records. They argued that Musk, as a “special government employee,” and Doge, which is not an official government department, had no legal basis to handle such sensitive financial information.
The lawsuit, filed on Friday, targeted President Trump, the Treasury Department, and Treasury Secretary Scott Bessent. By Saturday, Judge Engelmayer issued his ruling, citing “irreparable harm” if the access was not immediately revoked.
“That is both because of the risk that the new policy presents of the disclosure of sensitive and confidential information and the heightened risk that the systems in question will be more vulnerable than before to hacking,” the judge wrote in his order.
The injunction strictly limits access to Treasury records to civil servants who require it for their duties at the Bureau of Fiscal Services, provided they have passed rigorous background checks. It further restrains political appointees and external officials, including Musk, from viewing or handling such data.
Implications for Musk’s Role in Government
This ruling marks yet another controversy surrounding Musk’s deepening involvement in U.S. government affairs. While known for his leadership at Tesla and SpaceX, Musk has taken on an increasingly active role in Trump’s second-term administration. As the head of Doge, Musk has spearheaded aggressive budget cuts across various federal agencies, including the U.S. Agency for International Development (USAID), which distributes billions of dollars in aid worldwide.
Critics argue that Doge operates outside standard government oversight, allowing Musk to wield significant power with little accountability. “It is troubling to see a private businessman given access to such sensitive information,” said Massachusetts Attorney General Maura Healey, one of the plaintiffs in the case. “This ruling ensures that financial privacy laws are upheld and that no one, no matter how powerful, is above the law.”
The White House, Treasury Department, and Musk have so far declined to comment on the ruling.
Concerns Over Data Privacy and Security
The attorneys general raised alarms about the potential for abuse if Musk and Doge were granted access to Treasury data, which contains personally identifiable financial records of American citizens. Their lawsuit contended that the policy change violated federal privacy protections and opened the door for mass data breaches.
“Millions of Americans entrust their financial information to the federal government with the expectation that it will remain confidential,” said California Attorney General Rob Bonta. “Granting a private individual and an unofficial agency access to such sensitive records was reckless and illegal.”
Cybersecurity experts have also warned of increased hacking risks. “When you introduce third-party actors into government data systems, especially individuals outside traditional oversight structures, you create new vulnerabilities,” said Jake Williams, a former National Security Agency (NSA) cybersecurity analyst. “The court’s ruling is a critical step in preventing a potentially disastrous breach.”
Immediate Action Required
Judge Engelmayer’s order is clear: all individuals restricted by the ruling must destroy any copies of the Treasury records they have obtained. The conditions of the injunction will remain in place until at least February 14, when the court will hold another hearing to determine the case’s future direction.
Legal analysts suggest that the ruling signals a broader pushback against Musk’s increasing influence in government operations. “This case is about more than just data access—it’s about defining the boundaries of private-sector involvement in public governance,” said constitutional law expert Laurence Tribe. “It raises fundamental questions about transparency, oversight, and the rule of law.”
Political Repercussions
The ruling has ignited a political firestorm, with Democratic leaders hailing the decision as a victory for privacy rights, while Republican allies of the Trump administration have decried it as judicial overreach.
Senator Elizabeth Warren, a vocal critic of Musk’s government involvement, tweeted: “No billionaire should have unchecked access to Americans’ financial data. This ruling is a win for democracy and privacy.”
Conversely, Trump ally Senator Josh Hawley criticized the decision, stating, “The left is weaponizing the courts to block necessary government efficiency reforms. This is just another example of political obstruction.”
As legal battles continue, all eyes will be on the next court hearing on February 14, where Musk’s team is expected to appeal the injunction. Until then, the fate of Doge’s access to Treasury records remains in limbo, and Musk’s controversial role in government faces increased scrutiny.
