Unions Take Legal Action Against Elon Musk’s ‘Unprecedented’ Access to Americans’ Federal Financial Secrets

WASHINGTON — The American Federation of Government Employees, Service Employees International Union, and Alliance for Retired Americans have initiated a lawsuit against Treasury Secretary Scott Bessent. They argue that his recent decision to hand over the department’s payment system to Elon Musk constitutes a significant violation of privacy laws, impacting millions of American citizens.

The lawsuit, filed in U.S. District Court for the District of Columbia, claims that Musk’s so-called Department of Government Efficiency has unlawfully accessed sensitive financial data related to federal payments, such as income taxes and Social Security benefits. The complaint emphasizes that many individuals have no choice but to engage in transactions with the federal government, thus subjecting their private information to potential risks.

The complaint outlines concerns over the lack of safeguards for personal and financial data, stating, “Secretary Bessent’s action granting DOGE-affiliated individuals full, continuous, and ongoing access to that information for an unspecified period of time means that retirees, taxpayers, and federal employees have no assurance that their information will receive the protection that federal law affords.”

The Department of Government Efficiency, referred to as DOGE, was established through an executive order by former President Trump on his first day in office. This order rebranded the U.S. Digital Service and initiated an 18-month plan aimed at enhancing government technology. Allegedly motivated by Musk’s campaign contributions, the creation of DOGE was marketed as a way to streamline operations and reduce government spending.

Reports indicate that staff members from DOGE, including young engineers with connections to Musk’s ventures, have been given access to sensitive Treasury systems. A report by WIRED revealed that a 25-year-old engineer now possesses the ability to interact with crucial financial systems, raising further alarm about data security.

The situation escalated when personnel from DOGE sought access to the U.S. Agency for International Development (USAID), leading to administrative leave for at least two security officials who initially resisted. Democratic lawmakers have voiced strong opposition, protesting outside USAID’s headquarters and pledging a legal challenge.

Compounding the dramatic events, USAID’s operations were disrupted, with employees instructed to refrain from coming to work. The agency’s digital presence also went dark over the weekend, further fueling concerns regarding the oversight and control of sensitive government information.

Last updated 10:27 a.m., Feb. 4, 2025