On February 2, 2025, three federal employee unions filed a lawsuit against the Treasury Department, alleging that Treasury Secretary Scott Bessent unlawfully shared sensitive data with Elon Musk's Department of Government Efficiency (DOGE).

The lawsuit, brought by the Alliance for Retired Americans, American Federation of Government Employees, and Service Employees International Union, describes the data access as a 'massive' intrusion into privacy.

Warren warned that Musk's involvement threatens the integrity of systems essential for disbursing Social Security, tax refunds, and Medicare benefits.

U.S. Senator Elizabeth Warren has criticized Bessent for granting Musk's team access to Treasury systems, raising alarms about the security of sensitive financial data.

It contends that federal law restricts taxpayer information disclosure to authorized Treasury employees, arguing that DOGE's access violates the Privacy Act of 1974.

During a press conference on February 3, 2025, Warren and other Democratic leaders expressed concerns about Musk's access to Treasury systems and requested clarification on the safeguards protecting private information.

Republican members of Congress reported that Bessent assured them in a private meeting that DOGE did not control payment systems, although other sources suggest DOGE has some access to sensitive data.

Historian Heather Cox Richardson described Musk's actions as a 'coup,' noting that DOGE lacks legal authority since it was not established by Congress.

These developments occur amid broader challenges to Trump's commitment to reducing federal spending, with Musk's involvement in Treasury operations raising significant concerns.

On February 5, 2025, Trump stated that Musk would not be allowed to take unsanctioned actions without the administration's approval, emphasizing the need for oversight.

The Treasury Department has not publicly commented on the lawsuit, which has overshadowed Bessent's initial week in office.

Musk has claimed that DOGE is working to shut down illegal federal payments, further intensifying fears about the misuse of sensitive information.