A federal judge has temporarily barred Elon Musk’s Department of Government Efficiency (DOGE) from accessing US Treasury payment systems, citing concerns over data security and potential misuse of sensitive information.

The ruling, issued early Saturday by US District Judge Paul Engelmayer in Manhattan, came after a coalition of Democratic attorneys general from 19 states filed a lawsuit late Friday, arguing that Musk’s team lacked legal authority to access the systems handling trillions of dollars in government payments.

The lawsuit alleged that Musk’s involvement posed a cybersecurity threat and risked disrupting critical federal funding for healthcare, education, and climate initiatives. The states further claimed that former president Donald Trump’s administration could exploit the information for political purposes.

‘Absolutely Insane!’: Musk Reacts

Following the ruling, Musk lashed out on his social media platform X, calling the decision “absolutely insane.” He defended DOGE’s role, stating that his team had merely proposed reforms to increase transparency in government payments.

Elon Musk

Among the proposed changes, Musk said all outgoing payments would require a categorization code and a rationale in the form of a comment. He also suggested that a “do-not-pay” list be updated more frequently to prevent fraud.

“These are obvious and necessary reforms,” Musk posted on X, adding that implementation was being handled by government employees, not DOGE staff.

Concerns over data access and Security

Judge Engelmayer, an appointee of former Democratic president Barack Obama, sided with the attorneys general, arguing that the states’ claims were “particularly strong” and warranted immediate intervention.

“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,” he wrote in his ruling.

New York Attorney General Letitia James, whose office led the lawsuit, welcomed the decision. “We knew the Trump administration’s choice to give this access to unauthorized individuals was illegal, and this morning, a federal court agreed,” she said. “Now, Americans can trust that Musk – the world’s richest man – and his friends will not have free rein over their personal information while our lawsuit proceeds.”

Treasury secretary seeks to reassure

The ruling prohibits political appointees, special government employees, and external agency staff from accessing the Treasury Department’s payment and data systems. It also mandates the immediate destruction of any copied or downloaded materials.

Trump appointed Musk to head DOGE to identify government waste and fraud, a move that has sparked opposition from Democrats and advocacy groups. Critics argue that Musk is overstepping his role by attempting to dismantle key federal agencies and cut government jobs.

Treasury Secretary Scott Bessent, also a Trump appointee, insisted that Musk’s team would not interfere with payment operations. “Any decisions to stop payments will be made by the respective agencies,” he assured.