States Sue to Block Musk-Led Panel from Treasury System Access

Nineteen states, led by New York Attorney General Letitia James, filed a lawsuit to stop Elon Musk's Department of Government Efficiency (DOGE) from accessing U.S. Treasury systems. The lawsuit claims the panel lacks legal authority and risks cybersecurity and federal funding, with potential misuse by President Trump for political purposes.

A coalition of 19 U.S. states, largely Democratic-led, initiated legal action on Friday against the Trump administration. The lawsuit aims to prevent a panel led by billionaire Elon Musk from accessing government systems processing trillions of dollars in payments. The group is spearheaded by New York's Attorney General Letitia James, who argues that Musk's team lacks the legal jurisdiction needed to access crucial Treasury systems containing personal data of millions.

Filed in the Manhattan federal court, the lawsuit warns that the Musk-led initiative could jeopardize federal funding for essential services including health facilities, preschools, and climate programs. It further alleges that this access poses significant cybersecurity threats that could jeopardize state finances and argues that Trump might use the information for his political advantage. DOGE's authoritative reach also raises concerns about potential agency dismantlement and federal job cuts.

The legal action also names President Trump and the U.S. Department of Treasury as defendants, drawing in states like California and Massachusetts to join the lawsuit. The effort comes amidst additional lawsuits to restrict DOGE's access to data within other governmental departments. Treasury Secretary Scott Bessent insists comprehensive measures are in place to protect the Treasury system and prevent unilateral damage by Musk's team.

(With inputs from agencies.)