Elon Musk and his associates have taken charge of the US Treasury Department’s payments system, prompting a lawsuit that accuses him of unlawfully accessing the private financial data of millions of Americans. The billionaire entrepreneur is leading President Donald Trump’s cost-cutting drive under the newly established Department of Government Efficiency (DOGE).
The lawsuit, filed in Washington by labour unions and a grassroots advocacy group, demands a federal judge rule that it is illegal for Musk or DOGE representatives to access taxpayers’ personal information. It also seeks to prevent the Treasury Department from granting such access in the future.
Musk defended the move on Monday in a post on X, the social media platform he owns, arguing that the only way to prevent fraud and waste was to track payment flows and flag suspicious transactions for review.
The Treasury’s payments system is among the most tightly controlled in government, processing around $6 trillion annually for Social Security, Medicare, federal salaries, and other essential expenditures. The lawsuit claims that Musk was granted control after incoming Treasury Secretary Scott Bessent approved his access, following the removal of a career official who refused to comply. The official was placed on administrative leave last Friday and later resigned, a source familiar with the matter confirmed to AFP.
The legal complaint argues that by allowing DOGE-affiliated individuals to access sensitive financial data, “Americans from all backgrounds have no guarantee that their information will be protected under federal law.”
Wired magazine reported that Musk has embedded young operatives from DOGE into influential government roles, giving his team an unprecedented level of access to the Treasury’s payment systems—previously restricted to experienced civil servants. These staff members, aged between 19 and 24, have also been positioned at the federal Office of Personnel Management, which oversees human resources for government employees.
Last week, the office sent an email offering most federal employees the option to leave immediately with around nine months’ severance pay. However, legal experts have warned workers to carefully consider the offer, suggesting potential risks.
President Trump has publicly praised Musk as “a big cost-cutter,” saying on Sunday, “Sometimes we won’t agree with it, and we won’t always follow his lead, but I think he’s doing a great job.”
However, Democratic lawmakers have voiced alarm over what they see as a dangerous overreach. Critics argue that allowing political operatives to control the Treasury’s financial infrastructure is an illegal seizure of power.
“They are taking control of the tools needed for a coup,” warned Senator Ron Wyden, the top Democrat on the Senate Finance Committee. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, described the move as “extraordinarily dangerous,” arguing it poses a systemic risk to the economy.
In a letter to Treasury Secretary Bessent, Warren expressed outrage at what she described as the handover of a vital government function to an “unelected billionaire and an unknown number of unqualified associates.” She also warned that sidelining experienced civil servants in such a critical department “increases the likelihood of the US defaulting on its debt, which could trigger a global financial crisis.”
Meanwhile, Musk appeared to relish the controversy. In response to a post on X suggesting DOGE would expose widespread fraud within government agencies, he simply wrote: “Excitement guaranteed.”
