A coalition of three unions has filed a lawsuit against the United States Treasury, alleging that it breached federal laws when it granted Elon Musk’s Department of Government Efficiency (DOGE) access to Treasury data.
On February 3, the US Treasury Department and its Secretary, Scott Bessent, were criticised for granting DOGE-affiliated individuals access to sensitive financial records.
The lawsuit was filed by two of America’s largest labour unions—the American Federation of Government Employees (AFGE) and the Service Employees International Union (SEIU)—along with the Alliance for Retired Americans.
DOGE, an idea initially proposed by Musk during an X space discussion with US President Donald Trump, was officially established through an executive order on his first day back in office.
The goal of this unofficial initiative is to streamline federal operations by reducing wasteful spending and eliminating unnecessary regulations.
As part of its efforts to cut federal spending, DOGE was granted full access to the Treasury’s payment system on January 31, 2025, after Treasury Secretary Scott Bessent authorised the move.
Now, the plaintiffs argue that the Treasury’s actions violate federal privacy and put millions of taxpayers, retirees, and federal employees at risk, leaving them with “no assurance that their information will receive the protection that federal law affords.”
The information in question includes Social Security and Medicare benefits, tax refunds, veterans’ benefits, federal employee salaries, and payments to government contractors.
According to the plaintiffs, access to such a wide array of sensitive data goes far beyond standard auditing measures and effectively allows DOGE insiders to view, track, and potentially influence financial transactions involving millions of Americans.
By “granting DOGE-affiliated individuals full, continuous, and ongoing access” to these records without consent or legal justification, the Treasury has “systematically, continuously, and unlawfully” disclosed private data in violation of the Privacy Act and Internal Revenue Code, the lawsuit noted.
The lawsuit has urged the court to immediately revoke DOGE’s access to federal payment records and declare the Treasury’s actions unlawful. It also demands strict safeguards to ensure that any future disclosures of financial data comply with federal privacy laws, preventing similar breaches.
DOGE faces criticism
Musk, along with DOGE, have been criticised by privacy advocates, lawmakers, and legal experts who warn that the lack of transparency and oversight could set a dangerous precedent for government data access.
Senator Ron Wyden, a vocal critic of the initiative, described DOGE’s access to Treasury records as “an absolute nightmare for privacy and civil liberties”, calling for an immediate congressional investigation.
On February 3, Democrat lawmakers, including Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren, publicly condemned DOGE’s access to Treasury systems, warning that it poses serious privacy and security risks.
Schumer announced plans to introduce legislation that would prevent unauthorised meddling in federal payment systems while stressing that DOGE is not a real government agency and has no legal authority over spending decisions.
Meanwhile, Trump has yet to make an official statement regarding this.
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