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Federal Judge Blocks Elon Musk’s Probe into Treasury Department

A federal judge issued a temporary injunction on Saturday, preventing Elon Musk’s initiative aimed at enhancing government efficiency from accessing the Treasury Department’s systems that handle tax returns, federal employee compensation, and benefits like Social Security. The judge expressed concerns over potential “irreparable harm” to individual privacy and mandated the destruction of any data collected to date.

U.S. District Judge Paul Engelmayer determined that the efforts associated with the probe could lead to the exposure of sensitive information and increase the risk of system vulnerabilities, making them more susceptible to cyberattacks. In his ruling, he set a date for a hearing on the matter for February 14 and specified that any information retrieved must be destroyed as of January 20.

This ruling stems from a lawsuit initiated by 18 state attorneys general, including Letitia James from New York, who previously secured 34 convictions related to the falsification of business documents. The situation prompted a statement from the White House, which characterized the judicial action as an overreach.

“Government efficiency should not be obstructed by legal maneuvers that delay essential reforms,” stated Harrison Fields, a spokesperson for the White House. His comments reflect a broader frustration with what the administration perceives as unnecessary challenges to its agenda focused on eliminating waste and abuse in government operations.

Such legal challenges have arisen from various factions of the federal workforce aiming to impede the initiatives of the Department of Government Efficiency, a branch established by Trump and headed by Musk. Nonetheless, Musk expressed optimism on Saturday via X, announcing that he had reached an agreement with the Treasury Department to incorporate tracking metadata, such as categorization codes and expense justification comments, into their systems—details he claimed were initially instructed to be left blank.

However, Musk’s efforts in reforming government spending faced further obstacles last week when a federal judge postponed a deadline for federal employees to accept buyouts, as multiple legal challenges continue to emerge. In another setback, a federal court intervened to halt a comprehensive freeze on federal spending.

Source
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