On February 8, the U.S. SDNY temporarily blocked DOGE from accessing payment systems, payment records and other data systems operated by the Treasury Department’s Bureau of Fiscal Services (Treasury).
The judge issued the order in response to an emergency request filed by attorneys general from 19 states requesting a temporary restraining order against President Trump and the Secretary of the Treasury. The States alleged President Trump and the Treasury Secretary directed the Treasury to grant political appointees and “special government employees” access to the Treasury’s payment systems. According to the attorneys general, the Treasury payment systems allow federal agencies to disburse funds to “tens of millions of Americans” each year, including Social Security benefits, veterans’ benefits, and federal employee wages. Moreover, the states, who receive billions of dollars in funds directly from the Treasury, rely on certain federal programs “to provide vital services” including Medicaid, FEMA funds for disaster relief, and grants for Judge Advocate General’s Corps (i.e., JAG), among other items. The Treasury’s payment systems, which were previously accessible only to a limited number of career civil servants, contain sensitive personally identifiable information of millions of the states’ residents, including Social Security and bank account numbers, as well as federal tax information.
Pending a hearing of the states’ application for a preliminary injunction, the judge: (i) prohibited the President and the Treasury Secretary from granting access to civil servants with a need for access of Treasury Department payment record, payment systems, or any other data systems maintained by the Treasury; (ii) prohibited the President and Treasury Secretary from granting access to such systems to all political appointees, special government employees and government employees detailed from an agency outside the Treasury; and (iii) ordered the President and Treasury Secretary to direct any person who has had access to such information, records and systems since January 20, 2025, to destroy immediately all downloaded copies of the Treasury Department’s records and systems.
