Federal judges to decide on Musk's team access to Treasury systems

Investing.com -- On Friday, two U.S. federal judges will consider whether Elon Musk's government cost-cutting team, known as DOGE, should have access to the Treasury Department's payment systems and potentially sensitive data at various U.S. agencies including those for health, consumer protection, and labor.

The team, led by Musk, the CEO of carmaker Tesla (NASDAQ:TSLA), was appointed by President Donald Trump last month to reduce wasteful spending, as part of the president's major government overhaul. The team has been active across government agencies since its inception.

In Manhattan, U.S. District Judge Paul Engelmayer will review a request by Democratic state attorneys general to extend a temporary block on DOGE. This block, implemented on Saturday, prevents Musk's team from accessing Treasury systems that handle trillions of dollars in payments. The states argue that DOGE has no legal authority to access these systems, which hold sensitive personal information of millions of U.S. citizens.

The lawsuit against Musk and his team alleges potential disruption of federal funding for health clinics, preschools, climate initiatives, and other programs. It also suggests that the information could be used to further Trump's political agenda.

Meanwhile, in Washington, U.S. District Judge John Bates will review a request by unions to stop DOGE from accessing sensitive records at the Departments of Health and Human Services, the Labor Department, and the Consumer Financial Protection Bureau. Bates had denied a similar request last week, marking a rare ruling in favor of the Trump administration. However, the unions have modified their lawsuit and renewed their request.

While many of Trump's initiatives have faced legal challenges and have been blocked by the courts, the administration has continued with mass layoffs of government workers and significant cuts to America's foreign aid program. The majority of the cost-cutting efforts seem to be focused on programs opposed by political conservatives. Trump, along with Musk and other allies, have called for the impeachment of judges who block these initiatives, despite the president stating he would comply with court orders.

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