A Federal Judge Continues to Block Treasury Access for Musk’s Cost-Cutting Team

A federal court has imposed a ban that keeps Musk’s cost-cutting group from gaining access to Treasury systems that handle payments totaling trillions of dollars.

A federal court has prolonged a barrier that keeps Elon Musk’s cost-cutting team from using the US Treasury Department’s payment systems, which is a blow to the billionaire’s involvement in President Donald Trump’s massive government reform. 

The decision, given by US District Judge Jeannette Vargas in Manhattan on Friday, upholds a temporary injunction that was put in place over the weekend and prevents Musk’s Department of Government Efficiency (DOGE) from accessing Treasury systems that handle trillions of dollars’ worth of payments. 

The ruling comes after 19 Democratic state attorneys general filed court objections, claiming that Musk’s team lacks legal power and may interfere with funding for vital services like preschools and health clinics. 

In spite of the Treasury defeat, a different court decided in favor of DOGE, granting Musk’s team access to documents from the Consumer Financial Protection Bureau, the Department of Labor, and the Department of Health and Human Services. 

In that instance, US District Judge John Bates ruled that DOGE is a federal entity with the power to hire employees for other agencies. However, he referred to DOGE as a “Goldilocks entity: not an agency when it is burdensome but an agency when it is convenient,” criticizing the administration’s position on the organization’s designation. 

Musk, who celebrated the decision as a “HUGE win” in a statement shared on X, was selected by Trump last month to spearhead a radical cost-cutting program. 

Trump’s larger campaign to reduce the size of the federal government includes this initiative, which included thousands of job cutbacks on Friday. The administration has defended DOGE’s measures by arguing that they are required to fight misuse, fraud, and waste. 

However, there have been major legal obstacles to the project. Numerous Trump measures, such as attempts to terminate birthright citizenship and cut off government financing for transgender health care, have been the target of more than 70 lawsuits. Many of these policies have been prohibited by courts, and DOGE’s power is still being challenged in court. 

The University of California Student Association requested that a barrier that was preventing DOGE from accessing the Department of Education’s networks be extended, and US District Judge Randolph Moss took this motion into consideration at a separate hearing. Students contend that such access would interfere with loan programs and breach privacy regulations. Moss, who was nominated by former President Barack Obama, questioned the administration’s rationale but did not make a decision right away. 

Moss said, “I anticipate that if you ask Elon Musk, he will say the entire Department of Education is waste.” 

Democratic attorneys general have filed lawsuits against Musk, Trump, and DOGE, alleging that Musk’s appointment violates the Constitution and attempting to stop him from obtaining official information or formulating policy. Although she didn’t say when she would make a decision, US District Judge Tanya Chutkan in Washington seemed dubious of their reasoning. 

The future of Musk’s cost-cutting plan is still up in the air due to ongoing legal disputes. Some courts have voiced serious concerns about DOGE’s broad jurisdiction, while others have permitted restricted access to government documents. 

The dispute highlights the intense legal and political battles surrounding Trump’s attempts to restructure the federal government during his second term.