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US court indirectly sanctions Elon Musk

The agency led by Elon Musk has been blocked from accessing the government's payment system

Feb 8, 2025 18:00 35

US court indirectly sanctions Elon Musk  - 1

A federal court in the US has temporarily blocked access to the administrative body led by billionaire Elon Musk to a payment system used by US authorities to process trillions of dollars in payments, Reuters reported.

The court cited the risk of sensitive and confidential information being improperly disclosed, BTA reports.

The ruling was issued after a group of 19 US states, mostly dominated by Democrats, filed a lawsuit yesterday, claiming that the Department of Government Efficiency (DGE) led by Musk does not have the legal authority to access the Treasury Department's systems.

The lawsuit alleges that Musk and his team could disrupt federal funding for health care facilities, daycare centers, climate initiatives and other programs, and Republican President Donald Trump could use the information to further his political agenda.

The Department of Government Efficiency’s access to the systems also “poses a significant cybersecurity risk that puts large amounts of funding at risk for states and their residents,” prosecutors said. They are also seeking a temporary restraining order to block the department’s access.

Trump appointed Musk to head the Department of Government Efficiency, tasked with identifying fraud and waste in government. The eccentric billionaire's efforts have alarmed Democrats and lobbying groups, who say he is overstepping his authority by trying to dismantle agencies responsible for key government programs and mass layoffs of federal employees.

Trump's Treasury Secretary nominee, Scott Besant, said this week that Musk would have no say in the department's payment system, and any decision to suspend payments would be made by other agencies.