Elon Musk Faces Legal Battle Over Federal Spending Cuts Under Trump

A coalition of 14 state attorneys general, led by New Mexico, has filed a lawsuit in Washington, D.C., to stop Elon Musk from cutting federal spending as head of President Donald Trump’s Government Efficiency Agency (DOGE). The lawsuit claims Trump granted Musk “unchecked authority” without congressional approval.

Musk, appointed by Trump after taking office last month, has targeted wasteful spending through DOGE, triggering multiple lawsuits. The attorneys general argue Musk’s appointment was unlawful and are seeking to block his actions. Additionally, DOGE faces privacy lawsuits over unauthorized access to government systems.

On Friday, two federal judges will rule on DOGE’s access to sensitive Treasury Department systems and data from agencies, including Health and Human Services and the Consumer Financial Protection Bureau. In Manhattan, Judge Paul Engelmayer will decide whether to extend a block on DOGE's access to Treasury systems following a temporary order issued Saturday. Meanwhile, in Washington, Judge John Bates will consider a request from unions to prevent DOGE from accessing sensitive agency records.

The lawsuit warns that Musk’s actions could disrupt federal funding for vital services like health clinics, preschools, and climate programs. The states also accuse Trump of using sensitive data to advance his political agenda.

Despite legal setbacks, Trump's administration has proceeded with mass layoffs of federal workers and reduced foreign aid, focusing on cutting programs opposed by conservatives. Musk and Trump allies have called for the impeachment of judges who blocked their initiatives, though Trump stated he would comply with court orders.

This legal battle highlights escalating tensions over government power, privacy, and accountability under the new administration. The outcome of the rulings could significantly impact federal policy and government operations.