The American Federation of Government Employees (AFGE) and several other unions filed a lawsuit against the U.S. Treasury Department on Monday, challenging its decision to grant access to Treasury data to the Department of Government Efficiency (DOGE).
The lawsuit, filed in federal court in Washington, followed reports that Treasury Secretary Scott Bessent authorized the data-sharing arrangement with Elon Musk-led DOGE, last weekend.
The legal action accuses Bessent and the Treasury Department of unlawfully permitting DOGE to access sensitive data from the Bureau of the Fiscal Service, which manages federal payments and collections, Forbes reported.
According to the suit, DOGE was granted unrestricted entry into sensitive information, which should have been safeguarded. The lawsuit added that this move grants Musk's DOGE the ability to monitor and possibly control government spending.
The plaintiffs are calling for an immediate halt to what they describe as a "systematic, continuous, and ongoing violation of federal laws that protect the privacy of personal information contained in federal records."
In addition to the AFGE, the Service Employees International Union (SEIU) and the Alliance for Retired Americans are suing the Treasury Department. SEIU and the Alliance for Retired Americans represent over two million workers in government, healthcare, and public service sectors.
"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 alleges, according to Newsweek report.
The lawsuit also accuses Bessent of taking retaliatory actions against a civil servant who sought to protect the data from unauthorized access.
"Within a week of being sworn in as Treasury Secretary, Mr. Bessent placed that civil servant on leave and granted DOGE-affiliated individuals full access to the Bureau's data and the computer systems that house them," the suit stated.
Treasury's payment systems are typically highly restricted, due to the sensitive personal data they hold, such as information on U.S. citizens receiving tax refunds, Social Security benefits, and other federal payments.
Last Friday, Bessent approved granting access to Musk and his team to a system responsible for overseeing trillions of dollars in government payments, including Social Security checks and tax refunds.
The move expanded DOGE's mission, which originally focused on reducing the federal workforce and easing regulations, to now include monitoring taxpayer transactions.
Access to government payment systems could significantly advance DOGE's goal of reducing federal government spending.
Initially, President Donald Trump had directed the U.S. Office of Management and Budget to freeze federal grants and loans, only to reverse the order later, prompting the administration to seek alternative methods for curbing cash flow in the short term.
On Monday, a White House official confirmed that Musk was serving as a "special government employee," noting that he does not receive a salary for his role.
