WASHINGTON, USA – A federal judge has extended a temporary ban preventing Elon Musk’s government cost-cutting task force, the Department of Government Efficiency, DOGE, from accessing U.S. Treasury Department systems that handle trillions of dollars in federal payments.
U.S. District Judge Jeannette Vargas declined to rule on a longer-term preliminary injunction on Friday, February 14, 2025, but kept in place a temporary restraining order issued last week.
Lawsuit Challenges Musk-Led Initiative
The ruling is part of a lawsuit filed by 19 Democratic attorneys general challenging the Trump administration’s decision to grant DOGE access to the Treasury’s payments system, which processes federal disbursements for tax refunds, Social Security benefits, veterans’ aid, Medicare, and Medicaid.
The system also houses sensitive financial and personal data of millions of Americans.
New York Attorney General Letitia James, one of the plaintiffs, accused the administration of overstepping its authority.
“The President does not have the power to give away our private information to anyone he chooses, and he cannot cut federal payments approved by Congress,” James said in a statement.
The lawsuit names former President Donald Trump, Treasury Secretary Scott Bessent, and the U.S. Treasury Department as defendants.
Concerns Over Federal Access and Political Targeting
The lawsuit argues that DOGE’s expanded access to Treasury systems violates federal law and was designed to advance a political agenda.
According to the complaint, DOGE sought to block federal funds from reaching organizations and beneficiaries deemed out of alignment with the administration’s priorities.
This included an effort to freeze payments issued by the U.S. Agency for International Development (USAID).
During Friday’s hearing, protesters gathered outside the courthouse as attorneys for both sides debated the legality of DOGE’s actions.
Andrew Amer, a lawyer for the New York attorney general’s office, argued that states had already suffered harm as a result of DOGE’s Treasury access.
“We are here because the state’s bank information has been accessed. That has happened. We know it’s happened.”
Government attorney Jeffrey Oestericher pushed back, insisting there was no unlawful conduct, stating, “There’s nothing unlawful about the Treasury carrying out the priorities of a new administration using special government employees.”
Judge Vargas pressed the government’s lawyer on whether any data obtained by DOGE had been shared within federal agencies.
“The short answer is we don’t presently know,” Oestericher admitted.
The judge also questioned whether DOGE employees had undergone training before being granted access to Treasury systems.
“I don’t actually know,” Oestericher responded.
Implications of the Case
The case underscores a broader legal and political battle over executive authority, government oversight, and financial privacy.
The lawsuit highlights that access to the Bureau of Fiscal Service (BFS), the Treasury’s payments system, was previously limited to a select number of career civil servants.
However, the Trump administration expanded that access to political appointees and special government employees—without a clear legal rationale.
Amer called the move “unlawful from Day 1”, arguing that it was an attempt to implement policy objectives in a manner not permitted by law.
“Less than three weeks ago, the Treasury Department began implementing the engagement plan … to flag and pause funding requests that are authorized by congressional appropriation simply because of an ideological litmus test that they don’t align with the administration’s priorities,” Amer told the court.
What Happens Next?
Judge Vargas said she will issue a ruling on the request for a preliminary injunction “shortly”, but not on Friday.
The extended temporary restraining order remains in place, preventing DOGE from further accessing Treasury systems until a final decision is reached.
