States Challenge Elon Musk's Access to Federal Payment Systems

Nineteen Democratic-led U.S. states filed a lawsuit against a Trump administration panel led by Elon Musk. They argue Musk’s team should not access federal payment systems due to potential cybersecurity risks and political exploitation. The lawsuit challenges the legality of the panel's authority and seeks to protect personal information of millions of Americans.

Nineteen U.S. states have launched a lawsuit against a Trump administration panel governed by Elon Musk, aiming to block its access to crucial federal payment systems. The lawsuit, spearheaded by New York Attorney General Letitia James, contends that Musk's team lacks the legal power to access systems at the U.S. Department of Treasury that hold sensitive personal data of American citizens.

The coalition of states argues that Musk's team could potentially disrupt funding for essential services, including health clinics and climate initiatives. They allege that this access poses significant cybersecurity threats and may serve to advance Donald Trump's political aims. The legal challenge also calls into question Musk's influence over the Department of Government Efficiency, a panel created to identify government inefficiency.

Alongside the lawsuit, a federal judge has restricted access to the payment systems to only two special employees. Treasury Secretary Scott Bessent notes that while systems remain protected, the broader legality of Musk's role is in dispute. The lawsuit seeks an injunction to prevent DOGE from accessing these systems, claiming a breach of federal privacy laws and questioning the constitutional actions of the Trump administration.

(With inputs from agencies.)