NEW YORK (AP) — A federal judge on Tuesday made some clarifications but left intact a ban for now that prevents Elon Musk’s Department of Government Efficiency from accessing Treasury Department records containing sensitive personal data for millions of Americans.
Judge Jeannette A. Vargas in Manhattan issued an order to continue a ban prior to a hearing Friday. The ban was put in place last week by another federal New York jurist in response to a lawsuit that 19 Democratic attorneys general brought against President Donald Trump.
Justice Department attorneys told Vargas in a filing on Sunday that the ban was unconstitutional and needed to be immediately reversed.
They made additional arguments in a written submission on Tuesday, saying the ban limits Trump’s “ability to give direction to his subordinates” to ensure that annual outlays of $5 trillion by Treasury’s Bureau of the Fiscal Service are being handled with efficiency.
Vargas made changes to the ban to clarify its reach. For instance, she said Treasury Department officers nominated by Trump and confirmed by the Senate can access the records, making it clear that Treasury Secretary Scott Bessent is not subject to the ban.
The lawsuit contended that Musk’s ‘DOGE’ team was composed of “political appointees” who should not have access to Treasury records handled by “civil servants” specially trained in protecting such sensitive information as Social Security and bank account numbers.
Justice Department attorneys from Washington and New York argued in court papers Sunday that the ban was unconstitutional and a “remarkable intrusion on the Executive Branch” that must be immediately reversed. They said there was no basis for distinguishing between “civil servants” and “political appointees.”
“Basic democratic accountability requires that every executive agency’s work be supervised by politically accountable leadership, who ultimately answer to the President,” they wrote. The lawyers said the ban on accessing the records by Musk’s team “directly severs the clear line of supervision” required by the Constitution.
Vargas wrote in her order that it was not necessary yet to confront the constitutional questions raised by Justice Department attorneys.
Friday’s show cause hearing is another step in the litigation to see if the attorneys general can eventually obtain a permanent ban.
Last weekend, Musk and Vice President JD Vance cited the ban in a broad attack on the legitimacy of judicial oversight, a pillar of American democracy based on the separation of powers.
Musk’s Department of Government Efficiency was created to find and eliminate wasteful government spending. Its access to Treasury records and its inspection of government agencies has led critics to criticize Musk while his supporters praise the idea of reining in bloated government finances.
