Justice Department lawyers have agreed to a proposed order that would temporarily restrict access to sensitive Treasury Department financial data for operatives of the Department of Government Efficiency (DOGE), led by Elon Musk. This decision comes in response to a lawsuit challenging DOGE’s actions.

The American Federation of Government Employees (AFGE), The Alliance for Retired Americans and The Service Employees International Union (SEIU) filed the lawsuit on Feb. 3 after Elon Musk, a private citizen who is a “special government employee” in charge of DOGE and the richest man in the world, raided the federal government’s payment system over the weekend. 

Trump has charged Musk with finding ways to cut spending and regulations through DOGE (Department of Government Efficiency). 

Elon Musk and his Department of Government Efficiency (DOGE) team have gained access to and exerted influence over several key U.S. government agencies since Jan. 20, 2025. The departments and agencies affected so far include:

1. U.S. Agency for International Development (USAID): DOGE effectively shut down USAID, with its headquarters closed and website taken offline.
2. Treasury Department
3. General Services Administration (GSA): Musk visited GSA headquarters and his team has taken control of the agency, which manages federal real estate, procurement, and IT.
4. Office of Personnel Management (OPM): Musk’s aides have locked OPM workers out of computer systems containing personally identifying information of millions of federal employees.
5. Centers for Medicare and Medicaid Services: DOGE has reportedly gained access to this agency, which handles contracts totaling $1 trillion.
6. National Oceanic and Atmospheric Administration (NOAA): Musk’s team is scrutinizing NOAA, focusing on DEI-related materials and potentially affecting climate and weather data.
7. Federal Aviation Administration (FAA).
8. Federal Bureau of Investigation (FBI): A SpaceX-affiliated individual is reportedly serving as an advisor to the FBI director.
9. Department of Education: Musk has expressed interest in dismantling this agency.
10. Small Business Administration (SBA).

This rapid consolidation of control over federal agencies has raised concerns among Democrats and some Republicans about potential overreach and constitutional issues.

The lawsuit specifically focuses on the raid of the Treasury Department. 

The lawsuit alleges that:

1. The Treasury Department, under Secretary Scott Bessent, unlawfully shared confidential personal and financial data with the Department of Government Efficiency (DOGE) led by Elon Musk.
2. This action constitutes a “systematic, continuous, and ongoing violation of federal laws that protect the privacy of personal information contained in federal records”.
3. DOGE was granted access to highly sensitive government systems, including those that facilitate the government’s accounting and spending mechanisms.
4. The sharing of this data violates federal privacy protections and puts at risk important consumer safeguards and public protections.

The plaintiffs argue that the Treasury’s actions violate federal law by:

1. Disclosing records without individual consent
2. Providing access to non-employees who don’t require it for official duties
3. Sharing information beyond the specified “routine uses” in the Bureau’s System of Records Notices (SORNs)

The case raises serious concerns about data privacy and government transparency. Millions of Americans, including retirees, federal employees, and taxpayers, could be affected if the allegations are proven true.

The Treasury Department considers certain types of information sensitive due to the potential risks if compromised, including privacy violations, identity theft, and national security concerns. Access to such data is typically tightly controlled and protected under various laws and regulations, including the Privacy Act of 1974.

These include personal identifiers like Social Security numbers, names, dates and places of birth, as well as contact details such as physical and electronic mailing addresses, and personal phone numbers. Financial data is also safeguarded, including bank account and routing numbers, credit and debit card numbers, financial account details, and information about household income, assets, and liabilities. Health and biometric data are also considered sensitive, encompassing personal health records, biometric identifiers, and ‘omic data, which refer to biological molecules or metabolic information. Additionally, government-related data such as driver’s license numbers, tax return information, and details concerning federal benefits like Social Security and Medicare are protected. Other sensitive data include geolocation details, user names and passwords, and information regarding mental health and disabilities.

The Treasury Department, under the leadership of Secretary Scott Bessent, granted DOGE access to its payment systems and sensitive data. This decision was made at a high level within the department, seemingly overriding normal data protection protocols.

Two individuals associated with DOGE, Tom Krause and Marko Elez, were designated as “special government employees” and given access to Treasury systems. This status allowed them to bypass some of the usual restrictions on external access to sensitive government data.

*Update: Elez has resigned from DOGE after the Wall Street Journal revealed he was behind an X account that often posted racist remarks.

It seems that normal vetting procedures and privacy safeguards may have been circumvented in granting DOGE access. The lawsuit filed against the Treasury Department alleges that this access was granted “behind closed doors” and without proper legal justification.

As of February 6, 2025, there has been no direct public response from DOGE (Department of Government Efficiency) or Elon Musk regarding the allegations in the lawsuit. However, the Trump administration and the Justice Department have taken some actions in response to the legal challenge:

The Trump administration has agreed to temporarily restrict DOGE’s access to Treasury Department payment systems. Specifically:

• The administration submitted a motion with a proposed order outlining agreed-upon conditions.
• Access to payment records or payment system information by DOGE will be limited.
• Two designated Treasury employees, Krause and Marko Elez, will be allowed “read-only” access as needed to perform their duties.

Justice Department’s Response

During a court hearing, a Justice Department attorney refuted some of the claims made in the lawsuit:

• The attorney denied that the Treasury was disclosing personal information of Americans’ to third parties outside the government.
• He clarified that two DOGE appointees, classified as special government employees like Musk, have been given access to the systems.
• The attorney stated there are no intentions for these employees or any other DOGE staff at the Treasury to share information with Musk or others beyond the Treasury.

Even if Musk and Krause are not sharing data with third parties, they are executives of organizations that thrive off of user data. Access to sensitive government data granted to private citizens or “special employees” in the case of DOGE (Department of Government Efficiency) is unprecedented and highly unusual. Musk, owner of X and Starlink, among other businesses, and Krause, Chief Executive Officer (CEO) of Cloud Software Group (CSG) thrive off of personal data. 

Data associated with Americans could give them:

1. Market Intelligence: Access to such comprehensive financial data could provide invaluable insights into consumer spending patterns, income levels, and economic trends across different demographics and regions.
2. Targeted Product Development: With detailed information on Americans’ financial situations, companies could tailor products and services to specific income brackets or financial needs.
3. Risk Assessment: For financial services or insurance-related businesses, this data could be used to refine risk models and pricing strategies.
4. Competitive Advantage: Access to government payment information could provide insights into government contracts and spending, potentially benefiting companies competing for federal business.
5. AI and Machine Learning: Large datasets of financial information could be used to train AI models for various applications, from fraud detection to predictive analytics.
6. Financial insights: Access to Treasury payment systems could provide valuable economic and financial intelligence.
7. Cross-industry leverage: The diverse portfolio of Musk’s companies could potentially benefit from shared data insights across sectors.

While DOGE has not commented, the Treasury Department has stated that access to American’s personal information is limited and read-only. 

During a hearing overseen by U.S. District Judge Colleen Kollar-Kotelly, DOJ lawyers assured that, to their knowledge, the “special government employees” had not shared the data with anyone outside the Treasury, including Musk. They clarified that Musk’s role was limited to setting “high-level” policy goals while directing DOGE operatives to implement these actions.

While Judge Colleen Kollar-Kotelly temporary order limiting DOGE’s access to Treasury Department data does not keep these individuals from accessing the data, it aims to limit it to specific individuals and read-only capabilities. 

The key points about the order are:

1. The judge approved a consent order agreed upon by the Justice Department and the federal unions who brought the lawsuit.
2. The order restricts access to “any payment record or payment system of records maintained by or within the Bureau of the Fiscal Service” at the Treasury Department.
3. Two DOGE-connected “special government employees” at the Treasury Department, Tom Krause and Marko Elez, are granted “read-only” access to Bureau of Fiscal Service systems “as needed for the performance” of their duties.
4. Regular Treasury employees who need access to perform their duties are still allowed to access the records.
5. The order is temporary and will remain in effect until the court rules on a forthcoming preliminary injunction motion from the plaintiffs.

The temporary order limiting DOGE’s access to Treasury Department data has several significant implications for its operations:

The temporary order will remain in effect until February 24, 2025, when the court will consider a preliminary injunction motion from the plaintiffs.