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A federal judge has temporarily barred Elon Musk's government efficiency team from accessing a critical Treasury Department payment system, citing a risk of "irreparable harm."
The order, issued early Saturday, halts access to a sensitive system responsible for distributing Americans' tax returns, Social Security benefits, disability payments, and federal employees' salaries.
U.S. District Judge Paul Engelmayer ordered the destruction of any downloaded information obtained since Jan. 20.
He cited "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."
A hearing on the matter is set for Feb. 14.
The ruling responds to a lawsuit filed by New York Attorney General Letitia James and 18 other state attorneys general against the Trump administration. President Donald Trump and Elon Musk's efforts to shrink the federal workforce have sparked chaos, fear, and multiple lawsuits leading to judicial intervention.
The order follows another court ruling blocking the administration's attempts to dismantle the U.S. Agency for International Development. Additionally, a judge paused a Thursday deadline for the administration's so-called buyout offer to federal employees while its legality is reviewed, following earlier rulings halting a sweeping federal spending freeze.
The attorneys general allege that Musk's team, categorized as "special government employees," was unlawfully granted access to the Treasury system, which was previously restricted to specific government personnel.
The Trump administration calls the effort the Department of Government Efficiency (DOGE), intending to slash government costs. However, DOGE has sought access to key government computer systems, including the Treasury payment system, against agency objections.
DOGE's actions have triggered intense political debate and emergency court proceedings regarding its access to the system and potential government control over payments.
"The conduct of DOGE members presents a unique security risk to the States and State residents whose data is held," the lawsuit claims.
The payment system serves over 250 federal agencies and is essential to the operations of the US government and millions of Americans.
The administration's efforts have drawn opposition from Democratic senators, unions, and protestors concerned about Musk's role in accessing private citizen data.
Musk and his DOGE team have also attempted to disrupt or gain access to various government sectors, including federal workforce management, real estate, computer systems, and records management.