NEW YORK, Feb 13 (Reuters) - A coalition of state attorneys general has launched a legal challenge against Elon Musk's involvement in federal spending reduction efforts as head of President Donald Trump's new government efficiency agency. This action marks an escalation in the ongoing legal battles concerning the billionaire's influence within the White House.
The lawsuit, presented in Washington, D.C., federal court by the attorneys general of New Mexico and 13 other states, claims that President Trump has granted Musk unchecked legal authority without the approval of the U.S. Congress. Musk, appointed to lead the newly established Department of Government Efficiency (DOGE), has undertaken a significant overhaul of government operations since Trump's presidency began last month.
Musk and the DOGE have faced several privacy lawsuits regarding their access to government computer systems. The recent lawsuit challenges Musk's appointment as illegal, seeking a court order to prevent him from further government actions. The states voiced concern over Musk's unchecked authority, describing him as an "agent of chaos" within the government.
The White House has yet to comment on the issue. Meanwhile, two federal judges are set to deliberate on Friday whether the DOGE will gain access to Treasury Department payment systems and potentially sensitive data housed within U.S. health, consumer protection, and labor agencies.
In Manhattan, U.S. District Judge Paul Engelmayer will evaluate a request by Democratic state attorneys general to extend a temporary block preventing Musk's team from accessing Treasury systems, which manage trillions of dollars in payments. The states argue that Musk's team lacks legal authority to access these systems, which contain sensitive personal information of millions of Americans.
The lawsuit further suggests Musk's involvement could disrupt federal funding for essential services such as health clinics, preschools, and climate initiatives, with concerns that President Trump might leverage this information for political gain.
In Washington, U.S. District Judge John Bates will review a request from unions to block the DOGE team from accessing sensitive records at the Departments of Health and Human Services, the Labor Department, and the Consumer Financial Protection Bureau.
While many of Trump's initiatives have faced legal challenges and been halted by the courts, the administration continues to push forward with significant workforce reductions and cuts to foreign aid programs, primarily targeting programs opposed by political conservatives.
Despite opposition, Trump has complied with court orders, although Musk and other allies have called for the impeachment of judges blocking their initiatives.
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Reporting by Tom Hals and Jack Queen; editing by Nick Zieminski and Nia Williams
