Justice Department Limits Elon Musk’s Access to Treasury Payment System Amid Privacy Concerns

In a significant development, the Justice Department has reportedly agreed to temporarily limit billionaire Elon Musk’s Department of Government Efficiency (DOGE) from accessing the Treasury Department’s payment system. This move follows a lawsuit filed by union members and retirees who argue that such access would violate federal privacy laws.

According to NBC News, the lawsuit raises concerns over the vast amounts of Americans’ sensitive financial data within the Treasury Department’s payment and collections system. The Trump administration, in response, requested a court to enter a proposed order outlining the terms of Musk’s access.

“The Defendants will not provide access to any payment record or payment system of records maintained by or within the Bureau of the Fiscal Service,” the proposed order states. However, two special government employees will be granted exceptions, allowing them limited “read-only” access when necessary to perform their duties, the document further clarifies.

Experts have voiced significant concerns regarding Musk’s involvement with the system. Donald K. Sherman, executive director and chief counsel of Citizens for Responsibility and Ethics in Washington, told CBS MoneyWatch, “There is no community of Americans that this system does not touch, and so I think the concern is that access to this system including personally identifiable information has been ceded to the president’s billionaire friend for reasons that are passing understanding.”

Sherman warned of “quite real risks” that DOGE’s involvement could destabilize the system, potentially preventing millions of Americans from receiving payments they are entitled to. Democratic lawmakers have echoed these concerns.

Senator Elizabeth Warren (D-MA) issued a stark warning about the implications of Musk’s access to the Treasury system, suggesting it could enable politically motivated financial decisions. “Controlling the system could allow the Trump Administration to ‘unilaterally’ — and illegally — cut off payments for millions of Americans, putting at risk the financial security of families and businesses based on political favoritism or the whims of Mr. Musk and those on his team who have worked their way inside,” Warren wrote in a Feb. 2 letter addressed to new Treasury Secretary Scott Bessent.

As legal and political battles unfold, the question remains whether Musk’s Department of Government Efficiency will be permanently barred from handling the financial infrastructure of the U.S. government or if further measures will be taken to ensure the protection of citizens’ sensitive data.