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US Treasury Faces Lawsuit for Alleged Data Disclosure to Elon Musk’s DOGE

February 4, 2025

A lawsuit has been filed against the US Treasury, alleging it “unlawfully” granted Elon Musk’s Department of Government Efficiency (DOGE) access to sensitive financial and personal information.

Background:

  • The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), the largest union group in the US, filed a lawsuit on February 3 in a Washington, DC, federal court.
  • The lawsuit accuses the Treasury and Secretary Scott Bessent of illegally disclosing sensitive personal and financial data to Elon Musk’s DOGE.
  • The Department of Government Efficiency (DOGE), created by Musk under Donald Trump’s administration, has been given extensive oversight of federal spending.
  • The lawsuit highlights the scale of the privacy breach, describing it as “massive and unprecedented.”
  • DOGE allegedly has access to Social Security numbers, birth dates, addresses, banking details, and payment records of millions of individuals.

Why should you pay attention?

  • The lawsuit raises concerns about privacy violations and the unprecedented power granted to Musk’s department.
  • Reports suggest DOGE has access to government contractor payments, including those competing with Musk’s own companies.
  • The case fuels broader fears about Trump’s federal spending cuts and how they could impact government agencies.
  • Key Democrats have voiced alarm over potential misuse of sensitive data by Musk’s team.
  • If DOGE’s access is upheld, it could set a precedent for private individuals controlling public financial data.

Who said what?

  • AFL-CIO stated:
“People who must share information with the federal government should not be forced to share information with Elon Musk or his ‘DOGE.’”
  • US Senator Ron Wyden revealed on Feb. 1:
“Sources tell my office that Treasury Secretary Bessent has granted DOGE full access to this system... Social Security and Medicare benefits, grants, payments to government contractors—all of it.”
  • Senate Majority Leader Chuck Schumer announced legislative action
“[I will introduce a bill to] stop unlawful meddling in the Treasury Department’s payments systems.”
  • Schumer added::
“DOGE is not a real government agency. It has no authority to make spending decisions. The system is now at the mercy of Elon Musk.”

Zooming out:

  • This lawsuit is part of a growing political battle over government transparency and spending.
  • Democratic lawmakers are pushing back against Musk’s expanding influence in government operations.
  • The Treasury has yet to respond to the allegations, leaving uncertainty over the extent of DOGE’s authority.
  • With bipartisan scrutiny increasing, the case could lead to significant changes in who controls access to government financial data.
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