Michaela
Union Groups have filed a lawsuit against the U.S. Treasury, alleging that the latter violated federal laws by allowing the Department of Government Efficiency (DOGE) to access Americans’ sensitive financial and personal information.
According to a February 3 filing, the Alliance for Retired Americans, the American Federation of Government Employees, and the Service Employees International Union filed a lawsuit against the U.S. Treasury and Secretary Scott Bessent in federal court in Washington, D.C.
The lawsuit seeks to halt what the union alleges is an “unlawful, ongoing, systematic, and continuous disclosure of personal and financial information” to the organization and its head, Elon Musk. It claims that the personal data at risk includes names, Social Security numbers, birth dates, birthplaces, home addresses, telephone numbers, email addresses, and bank account details.
“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, federal employees, companies, and other individuals from all walks of life have no assurance that their information will receive the protection that federal law affords,” the lawsuit stated.
The complaint referenced a February 1 post on Bluesky by U.S. Senator Ron Wyden, revealing that sources had informed his office that “Bessent has granted DOGE full access” to the Treasury’s payment system. The day prior, Wyden had called for clarification from Bessent regarding DOGE’s access.
Initially, access to the records was restricted to DOGE workers by a Treasury employee within the Bureau of the Fiscal Service. However, the lawsuit asserts that following Bessent’s confirmation, the employee was placed on leave, and DOGE personnel were granted “full access to the Bureau’s data and the computer systems that house them.”
The suit also alleges that Bessent granted access “without any public announcemеnt, legal justification, or explanation for his decision, nor did he follow the required legal process to amend the agency’s disclosure policies.”
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Democrats Fight Back
The legal action was filed concurrently with a press conference held by top Democratic leaders, including Senate Mаjority Leader Chuck Schumer and Senator Elizabeth Warren, who voiced concerns over Musk and DOGE’s access to Treasury systems.
Schumer announced plans to introduce legislation aimed at preventing “unlawful meddling in the Treasury Department’s payments systems.”
“DOGE is not a real government agency,” Schumer stated. “It has no authority to make spending decisiоns. It has no authority to shut programs down or ignore federal law,” he added.
Additionally, Warren expressed concerns over the system’s security, stating that it “is now at the mercy of Elon Musk” and warning that he “has the power to suck out all that information for his own use.”
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Bessent Clarifies
According to Politico, Bessent assured Republican lawmakers during a closed-door meeting on Capitol Hill that Musk and his DOGE team do not have control over the Treasury Department’s payment systems.
Politico also reported that Bessent authorized “read-only” access to the system for a team led by a Treasury liaison to DOGE. However, Wired later revealed that a 25-year-old engineer with connections to Musk allegedly has direct access to Treasury Department systems that manage nearly all U.S. government payments.
The lawsuit marks the latest legal challenge to President Donald Trump’s efforts to reduce federal spending. Critics argue that the administration’s approach lacks transparency and could jeopardize sensitive financial data.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
