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On Monday, New York Attorney General Letitia James initiated legal action against the Trump administration, leading a group of 18 attorneys general from various states. The lawsuit aims to prevent unauthorized access to the private information of Americans, including bank account details and Social Security numbers, which was allegedly granted to Elon Musk and the "Department of Government Efficiency (DOGE)." The coalition contends that the Trump administration’s policy, which came into effect on February 2, 2025, illegally allows Musk and DOGE to access the U.S. Treasury Department’s central payment system, posing a threat to the security of Americans’ sensitive data and the integrity of federal funds distribution.
Attorney General James expressed that regardless of status or wealth, the law applies to everyone equally, including Elon Musk. The lawsuit claims that the Trump administration overstepped its authority by providing Musk and DOGE with the capability to potentially interfere with federal funds allocated by Congress for critical services such as health care and childcare. The coalition seeks to safeguard citizens’ confidential information and uphold the constitutionally mandated separation of powers.
The central payment system in question, operated by the Bureau of Fiscal Services (BFS), is responsible for disbursing essential funding to millions of Americans, including Social Security, veteran’s benefits, and Medicare and Medicaid payments. It also handles substantial financial support for state services like law enforcement, public education, and infrastructure maintenance. Attorney General James and the coalition argue that the Treasury Department’s policy to expand access to BFS’s payment system is a violation of federal law, which traditionally limits access to a select group of career civil servants with appropriate security clearances.
The lawsuit alleges that the policy change not only puts Americans’ personal information at risk but also gives Musk and other unauthorized individuals the power to potentially freeze federal funds, which would be in violation of the Constitution. The legal challenge seeks an injunction to halt the Trump administration’s policy allowing expanded access to the BFS payment system and a declaration that the policy change is unlawful and unconstitutional. The coalition is determined to prevent any unconstitutional freeze on essential funding that Americans depend on daily.
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