A federal judge has temporarily blocked Elon Musk's Department of Government Efficiency (DOGE) from accessing sensitive Treasury Department records, which contain personal financial data for millions of Americans, in response to a lawsuit filed by 19 Democratic attorneys general.

U.S. District Judge Paul A. Engelmayer issued the preliminary injunction early Saturday, citing substantial risks of disclosing sensitive data and potential cybersecurity threats. This decision halts access to the Treasury’s central payment systems, which handle trillions of dollars in federal transactions, including Social Security and benefits for veterans and families.

Engelmayer's ruling comes in the wake of legal actions initiated by the offices of state attorneys general, who argue that Musk's team unlawfully gained access to critical financial data housed within the U.S. Department of Treasury. The complaint contends that this access jeopardizes funding for essential services and allows the Trump administration to exploit such information for political gain, further claiming that the operation compromises Americans' privacy and security.

According to the BBC, the judge acknowledged the "irreparable harm" the states would face if Musk’s DOGE continued to access confidential data, emphasizing the "heightened risk" posed by such unfettered access.

“This unelected group, led by the world’s richest man, is not authorized to have this information,” stated New York Attorney General Letitia James, whose office spearheaded the lawsuit. Her assertion aligns with the lawsuit’s claims, which also highlight how DOGE's activities could disrupt federal operations and service availability for millions of Americans reliant on government funding.

The order issued by Engelmayer forbids any political appointees, special government employees, or anyone outside the Treasury Department from gaining access to these sensitive records. Furthermore, individuals found to have accessed Treasury records without authorization since January 20 must destroy any copies of the material they obtained.

The White House and Treasury Department did not immediately comment on the ruling, while Musk took to his social media platform to publicly deride the decision, calling it “absolutely insane,” claiming that it hampers efforts to root out fraud and mismanagement within government programs.

As legal scrutiny begins to mount against Musk's initiatives, especially around his ambitious plans to cut federal spending tied to perceived wasteful programs, this court ruling may signal a significant setback for the goals of DOGE amid mounting concerns over data privacy and governmental transparency.

For further details, refer to the original articles from The Guardian and HuffPost.