**Musk's Initiative Faces Legal Setback Over Treasury Access**

Sun May 04 2025 05:15:40 GMT+0300 (Eastern European Summer Time)
**Musk's Initiative Faces Legal Setback Over Treasury Access**

**Federal judge issues injunction, halting access to sensitive data for Musk's cost-cutting program.**


**Concerns arise over personal data protection and potential governmental overreach in Musk's controversial initiative.**

In a significant legal ruling, a federal judge has effectively halted Elon Musk's Department of Government Efficiency (Doge) from obtaining personal financial information stored within the Treasury Department's records. US District Judge Paul A. Engelmayer issued a preliminary injunction this past Saturday, mandating that Musk and his team must immediately destroy any copies of sensitive records they may have accessed.

The legal challenge emerged following a coalition of 19 state attorneys general who filed a lawsuit against the Trump administration after accusing Doge, which promotes cost-cutting within federal agencies, of overstepping its bounds. The states argued that allowing Musk, designated as a "special government employee," access to such records is in direct violation of federal law, particularly as Doge is not recognized as an official government department.

The White House, President Donald Trump, and Musk have yet to comment on the latest developments, which unfolded after the Democratic attorneys general initiated their lawsuit against Trump, the Treasury Department, and Treasury Secretary Scott Bessent last Friday.

Judge Engelmayer's ruling stated that the states would suffer "irreparable" harm if the access were to continue. The risks cited included potential exposure of sensitive and confidential information and increased vulnerability to hacking incidents. The injunction restricts access to Treasury records exclusively to civil servants who require it for their official duties and have cleared background checks, effectively barring special government employees and other political appointees from entry.

Further, the ruling stipulates that those who previously accessed the records must destroy their copies immediately. This decision will remain in effect until the next court session, scheduled for February 14. Throughout Trump's second term, Musk has made headlines through significant operational changes at key agencies, notably his efforts to streamline operations at the US Agency for International Development (USAID), which oversees global financial assistance.

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