NY Attorney General Letitia James Sues Trump Administration and Elon Musk Over Treasury Data Breach

On Valentine’s Day, New York State Attorney General Letitia James and Connecticut Attorney General William Tong intensified their legal battle against Elon Musk, accusing him and his associates at the Department of Government Efficiency (DOGE) of orchestrating the largest data breach in U.S. history.

CBS News reported that more than a dozen states have joined a lawsuit questioning the authority of DOGE and the Trump Administration to access sensitive records from the Treasury Department. These records include Social Security numbers, addresses, and biometric data.

At a press conference before their court appearance, Tong emphasized the severity of the breach. “We are talking about highly sensitive personal information. Together, we are determined to prevent Elon Musk and his group from compromising the integrity of the Treasury Department,” he stated.

In a joint statement released to BLACK ENTERPRISE, James, along with 11 other attorneys general, argued that President Trump and DOGE overstepped their bounds. “Elon Musk’s team recently accessed our national central payment system, exposing the personal data of millions of Americans. This prompted us to take immediate legal action to halt this breach,” the statement explained.

The attorneys general swiftly secured a court order that temporarily blocks Musk and his team from accessing further information and mandates the destruction of any records they had previously obtained.

The statement further clarified, “Despite Elon Musk’s status as one of the wealthiest individuals globally, he has no legal right to access private data. The U.S. Constitution reserves control over federal expenditures primarily to Congress, not the President.”

During the court proceedings, the Justice Department defended the actions of DOGE, arguing that the access granted was lawful and a legitimate execution of the new administration’s priorities.

However, the legal dispute continues to draw attention to the critical nature of the U.S. payment systems. Yesha Yadav, a law professor and associate dean at Vanderbilt University, emphasized the system’s importance, describing it as “the nerve center of our payment systems.” Yadav highlighted the unprecedented risk of default on domestic obligations posed by potential security lapses.

Jacob Leibenluft, a former senior official at the Treasury and the Office of Management and Budget under President Biden, echoed these concerns. In comments to the media, he cautioned that the security and operation of these systems require utmost care, expressing doubts about Musk’s team’s ability to manage these responsibilities effectively.

As the legal battle unfolds, with no immediate ruling expected, the case highlights the ongoing tensions and challenges in managing and protecting the nation’s critical financial infrastructure under changing administrations.