Judge Grants Preliminary Injunction Blocking DOGE From Sensitive Treasury System

U.S. District Judge Jeannette Vargas said the injunction could be lifted if the Treasury Department is able to address procedural issues for data protection.

A federal judge on Friday upheld a previous restraining order banning the Department of Government Efficiency (DOGE) from accessing sensitive financial records kept by the Treasury Department.

U.S. District Judge Jeannette Vargas granted a preliminary injunction sought by 19 state attorneys general to block the Treasury Department from allowing DOGE access to its payment systems while the case is ongoing.

The injunction will substantially track the terms of the temporary restraining order issued on Feb. 8, which barred the Treasury Department from granting access to political appointees, special government employees, or any other employees outside the department. The White House has designated Elon Musk, head of the DOGE team, as a special government employee.

Under the order, only those working at the Bureau of Fiscal Services and who have passed background checks may access those records.

In a 64-page order on Feb. 21, Vargas stated that the court would allow the defendants a chance to address procedural issues relating to the protection of sensitive information at the Treasury Department.

The judge said the injunction could be lifted if the Treasury Department certifies by March 24 that DOGE members have received the required training for accessing the Bureau of the Fiscal Services, verifies the vetting and security clearance processes conducted by DOGE, and develops mitigation procedures to reduce potential threats arising from DOGE’s increased access to the systems.

“Indeed, taking the time to adequately mitigate potential security concerns and properly onboard members to engage in this work outweighs the defendants’ immediate need to access and redevelop [the] Treasury system,” Vargas stated. “Without addressing these issues, the potential consequences of a cybersecurity breach could be catastrophic.”

The judge also rejected the plaintiffs’ request for broader restrictions barring DOGE from developing processes to halt payments coming through the Treasury payment systems.

Vargas said the request would “far exceed” the scope of the temporary restraining order issued earlier this month and the plaintiffs had not demonstrated they are entitled to the sweeping relief against DOGE.

Nevada Attorney General Aaron Ford, one of the plaintiffs in the lawsuit, said in a statement that the injunction serves as a “victory for the rule of law and for Nevadans.”

“Our country has systems in place to ensure our government runs smoothly and our citizens are protected, and I will fight back against any effort to unlawfully skirt those protections or dismantle our system of checks and balances,” he stated.

Ford stated that President Donald Trump “endangered the private, personal information of Nevadans and Americans” by allowing DOGE access to the Treasury’s sensitive information.

The attorneys general who joined Ford in filing the Feb. 7 lawsuit include those from New York, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin.

Both the White House and the Treasury Department did not respond to a request for comment by publication time.

The restraining order was issued by U.S. District Judge Paul Engelmayer on Feb. 8, which was later extended by Vargas in a Feb. 11 ruling. Vargas stated at the time that Treasury Secretary Scott Bessent and other senior department officers confirmed by the Senate are not prohibited from accessing the Treasury payment systems.

Trump signed an executive order on Jan. 20 renaming the existing U.S. Digital Service as DOGE and tasked it with reviewing federal agencies for potential workforce downsizing and cost reductions. The order states that DOGE’s work is expected to be completed by July 4, 2026.

To conduct audits, DOGE has been granted access to federal systems, sparking legal challenges from some Democratic lawmakers and labor unions who argued the access is unconstitutional.

Justice Department attorneys issued a proposed order on Feb. 5 saying the federal government will temporarily restrict DOGE from accessing information in the Treasury payment system and allow special government employees “read-only” access to the data.

DOGE reported that its cost-cutting efforts across several federal agencies have saved an estimated $55 billion as of Feb. 17.

Bill Pan contributed to this report.