Elon Musk's actions have alarmed Democrats and advocacy groups who say he is overstepping his authority. (Reuters: Benoit Tessie)
In short:
A US District Court judge has put a temporary block on Elon Musk and employees of his Department of Government Efficience (DOGE) accessing the US Treasury Department's payment and data systems.
The ruling was issued in response to a lawsuit from 19 states filed on Friday, alleging Mr Musk and his cost-cutting team could disrupt a number of vital government services and access sensitive data.
What's next?
The judge's order is only temporary — a further hearing before another judge is scheduled for next Friday, February 14.
An American federal judge has temporarily blocked billionaire Elon Musk's government efficiency team from accessing systems used to process trillions of dollars in government payments, citing a risk that sensitive information could be improperly disclosed.
US District Judge Paul Engelmayer issued the order in Manhattan on Saturday morning after a coalition of 19 mostly Democratic-led US states filed a lawsuit arguing Mr Musk's Department of Government Efficiency (DOGE) has no legal power to access the US Department of Treasury systems.
The lawsuit said Mr Musk and his team could disrupt federal funding for health clinics, preschools, climate initiatives, and other programs, and that President Donald Trump, a Republican, could use the information to further his political agenda.
Trump makes Elon Musk a 'special government employee'
Photo shows Elon Musk standing behind a podium, raising his fists in the air and shouting.
DOGE's access to the systems also "poses huge cybersecurity risks that put vast amounts of funding for the States and their residents in peril," the state attorneys-general said, seeking a temporary restraining order preventing Mr Musk's team from accessing the systems.
The judge, an appointee of Democratic former president Barack Obama, said the states' claims were "particularly strong" and warranted him acting on their request for emergency relief pending a further hearing before another judge on February 14.
"That is both because of the risk that the new policy presents of the disclosure of sensitive and confidential information and the heightened risk that the systems in question will be more vulnerable than before to hacking," Judge Engelmayer wrote.
His order bars political appointees, special government employees and government employees detailed from an agency outside the Treasury Department from being granted access to the department's payment and data systems.
The judge also directed anyone prohibited under his order from accessing those systems to immediately destroy anything they had previously copied or downloaded.
The states' case is being led by New York Attorney-General Letitia James. (Reuters: David Dee Delgado)
New York Attorney-General Letitia James, a Democrat whose office is leading the case, said the order prevents Mr Musk, the world's richest person, from accessing Americans' private data.
"I've said it before, and I'll say it again: no-one is above the law," Ms James said.
Judge Engelmayer's ruling came a day after another federal judge, this time a Trump appointee, paused Mr Musk's plans to place 2,200 USAID employees on leave.
The White House and Treasury Department did not immediately respond to requests for comment from news agency Reuters.
Mr Trump deputised Mr Musk to lead DOGE to identify fraud and waste in the government, however Mr Musk's efforts have alarmed Democrats and advocacy groups who say he is overstepping his authority by seeking to dismantle agencies responsible for critical government programs and fire federal workers en masse.
Reuters