Federal Judge Blocks Elon Musk's Panel Over Payment System Access

A federal judge temporarily halted a panel spearheaded by Elon Musk from accessing U.S. Treasury payment systems. The decision followed a lawsuit filed by 19 mostly Democratic-led states, arguing the panel lacks the legal authority to handle sensitive government data.

In a significant legal move, a federal judge on Saturday temporarily prevented a Trump administration panel, chaired by billionaire Elon Musk, from accessing crucial government systems that oversee trillions of dollars in payments. The block was issued due to concerns over potential exposure of sensitive information.

U.S. District Judge Paul Engelmayer in Manhattan issued this order after an alliance of 19 predominantly Democratic-led U.S. states filed a lawsuit late Friday. The states asserted that Musk's newly formed Department of Government Efficiency does not possess the legal jurisdiction to interact with U.S. Department of Treasury systems.

This legal challenge underscores growing tension over government oversight and access to sensitive data, especially when business magnates are involved in government operations.

(With inputs from agencies.)