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A federal judge has extended a block preventing Elon Musk’s cost-cutting team from accessing payment systems at the US Treasury Department, dealing a setback to the billionaire’s role in President Donald Trump’s sweeping government overhaul.
The ruling, issued Friday by US District Judge Jeannette Vargas in Manhattan, continues a temporary order placed last weekend that bars Musk’s Department of Government Efficiency (DOGE) from gaining access to Treasury systems responsible for trillions of dollars in payments.
The decision follows legal challenges from 19 Democratic state attorneys general, who argue that Musk’s team lacks legal authority and could disrupt funding for essential programs, including health clinics and preschools.
Despite the Treasury setback, another judge ruled in favor of DOGE, allowing Musk’s team to access records at the Department of Labor, the Department of Health and Human Services, and the Consumer Financial Protection Bureau.
In that case, US District Judge John Bates determined that DOGE functions as a government agency, giving it authority to staff other departments. However, he criticised the administration’s stance on DOGE’s classification, calling it a “Goldilocks entity: not an agency when it is burdensome but an agency when it is convenient.”
Musk, who reposted a message on X celebrating the ruling as a “HUGE win,” was appointed by Trump last month to lead a drastic cost-cutting initiative.
This effort, which included thousands of job cuts on Friday, is part of Trump’s broader push to shrink the federal government. The administration has justified DOGE’s actions as necessary to combat waste, fraud, and abuse.
However, the initiative has faced significant legal hurdles. More than 70 lawsuits have been filed against various Trump policies, including efforts to eliminate federal funding for transgender health care and end birthright citizenship. Courts have blocked many of these measures, and legal challenges to DOGE’s authority continue to mount.
At a separate hearing, US District Judge Randolph Moss considered a request from the University of California Student Association to extend a block preventing DOGE from accessing the Department of Education’s systems. Students argue that such access could violate privacy laws and disrupt loan programs. Moss, who was appointed by former President Barack Obama, did not immediately rule but questioned the administration’s justification.
“I expect if you ask Elon Musk, he would say the entire Department of Education is waste,” Moss remarked.
Meanwhile, Democratic attorneys general have sued Musk, Trump, and DOGE, claiming Musk’s appointment is unconstitutional and seeking to prevent him from accessing government data or making policy decisions. US District Judge Tanya Chutkan in Washington appeared skeptical of their arguments but did not indicate when she would rule.
As legal battles continue, the future of Musk’s cost-cutting initiative remains uncertain. While some judges have allowed limited access to government records, others have expressed deep reservations about DOGE’s sweeping authority.
The controversy underscores the fierce political and legal fights over Trump’s efforts to reshape the federal government in his second term.
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