A federal judge blocked the so-called Department of Government Efficiency from accessing Treasury Department records that contain sensitive personal data such as Social Security and bank account numbers for millions of Americans following a lawsuit by 19 state attorneys general, including Hawaii AG Anne Lopez.

What You Need To Know

  • U.S. District Judge Paul A. Engelmayer issued a preliminary injunction early Saturday
  • The suit, filed in federal court in New York City, alleges that the administration illegally provided DOGE access to the system, which contains Social Security numbers, bank account details and other sensitive personal information for millions of Americans
  • The AGs contend the new policy violates the law, jeopardizes Americans’ most sensitive personal information, and would allow Musk and other unauthorized political appointees to access a system that could permit them to freeze federal funds in violation of the U.S. Constitution
  • Earlier in the week, Lopez today joined another coalition of 14 attorneys general to reaffirm their commitment to protecting access to gender-affirming care following a Trump executive order prohibiting the funding, sponsorship, promotion, assistance or support of 'the so-called ‘transition’ of a child from one sex to another'

 

U.S. District Judge Paul A. Engelmayer issued a preliminary injunction early Saturday.

The suit, filed in federal court in New York City, alleges that the administration illegally provided DOGE access to the system, which contains Social Security numbers, bank account details and other sensitive personal information for millions of Americans.

The AGs said the information could allow Elon Musk and his DOGE team to block federal funds to states and programs providing health care, childcare, and other critical services. The suit seeks to block the administration’s new policy that allows DOGE, Musk and others access to Americans’ confidential information and the Treasury’s payment system. It also seeks court affirmation that the access granted to DOGE is unlawful and unconstitutional.

The Treasury Department previously stated that DOGE access to its payment system was provided on a "read-only" basis and that DOGE review was to ensure "payment integrity."

By federal law, access to the Bureau of Fiscal Services’ central payment system — which controls the funding behind Social Security payments, veterans benefits, and Medicare and Medicaid payment, as well as billions of dollars that support state law enforcement, public education and infrastructure — is limited to a select group of career civil servants who hold special security clearances.

However, on Feb. 2, the Treasury Department adopted a new policy granting “special government employees” like Musk and members of DOGE access to the system.

The AGs contend the new policy violates the law, jeopardizes Americans’ most sensitive personal information, and would allow Musk and other unauthorized political appointees to access a system that could permit them to freeze federal funds in violation of the U.S. Constitution.  

“The people of Hawaii have the right to expect that their personal information held by the federal government will be strictly used only for its intended and lawful purpose and will otherwise be held secure,” Lopez said in a statement issued on Friday. “The state of Hawaii will stand up to ensure that the trust we put in our federal institutions is repaid in kind.”

The state is being represented in the suit by solicitor general Kalikoonalani Fernandes and special assistant to the attorney general Dave Day.

Joining Lopez in filing the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Rhode Island, Vermont and Wisconsin. 

The suit is the latest in a series of actions Lopez and her department have undertaken in response to the new administration’s numerous executive orders and policy changes.

Earlier in the week, Lopez today joined another coalition of 14 attorneys general to reaffirm their commitment to protecting access to gender-affirming care following a Trump executive order prohibiting the funding, sponsorship, promotion, assistance or support of “the so-called ‘transition’ of a child from one sex to another.”

“As state attorneys general, we stand firmly in support of health care policies that respect the dignity and rights of all people,” the AGs joint statement read. “Health care decisions should be made by patients, families and doctors, not by a politician trying to restrict freedoms. Gender-affirming care is essential, lifesaving medical treatment that supports individuals in living as their authentic selves.”

Trump said the order will protect children from

“Across the country today, medical professionals are maiming and sterilizing a growing number of impressionable children under the radical and false claim that adults can change a child’s sex through a series of irreversible medical interventions,” the order stated. “This dangerous trend will be a stain on our Nation’s history, and it must end.

“Countless children soon regret that they have been mutilated and begin to grasp the horrifying tragedy that they will never be able to conceive children of their own or nurture their children through breastfeeding,” it continued. “Moreover, these vulnerable youths’ medical bills may rise throughout their lifetimes, as they are often trapped with lifelong medical complications, a losing war with their own bodies, and, tragically, sterilization.

The AGs asserted that no federal law makes gender-affirming care unlawful and Trump thus cannot change that by executive order. 

Joining Lopez in the statement were the attorneys general of California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, New Jersey, New York, Nevada, Rhode Island, Vermont and Wisconsin. 

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at michael.tsai@charter.com.