New York AG Sues Trump Administration Over Alleged Data Access to Musk and DOGE

New York Attorney General Letitia James, along with 18 state attorneys general, has filed a lawsuit against the Trump administration, challenging a policy that allegedly grants Elon Musk and the "Department of Government Efficiency (DOGE)" unauthorized access to Americans' sensitive financial data. The lawsuit argues that the administration overstepped its authority by allowing Musk and DOGE access to the U.S. Treasury Department’s central payment system, posing a serious threat to personal privacy and federal fund security.

The policy, which took effect on February 2, 2025, permits access to the Bureau of Fiscal Services (BFS) payment system, which distributes Social Security, veterans' benefits, Medicare, Medicaid, and state funding for essential services like law enforcement and public education. James contends that this change violates federal law, as only select civil servants with security clearance should have such access.

The lawsuit warns that expanding access to BFS could allow unauthorized individuals to manipulate or freeze federal funds, undermining constitutional protections. James emphasized that no one, regardless of wealth or status, is above the law, including Musk. The coalition seeks an injunction to block the policy and a legal declaration that it is unconstitutional.

The case highlights concerns over data privacy and the separation of powers, with the attorneys general working to prevent potential misuse of federal funds. The lawsuit underscores the risks associated with unauthorized access to government financial systems, reinforcing the importance of safeguarding Americans’ confidential information.