The Treasury Department is facing a lawsuit over Elon Musk's alleged "massive and unprecedented" intrusion into the American government's payment systems. The suit, filed by the advocacy group Public Citizen, demands that the court stop the "unlawful, ongoing, systematic, and continuous disclosure of personal and financial information … to Elon Musk and other members of the so-called ‘Department of Government Efficiency (DOGE), or to any other person."

The lawsuit, filed on behalf of the Alliance for Retired Americans, American Federation of Government Employees, and the Service Employees International Union, claims that the Treasury Department, led by recently appointed Secretary Scott Bessent, violated the Privacy Act of 1974 and the Internal Revenue Code's regulations surrounding taxpayer information by letting Musk and DOGE access these systems. This alleged access includes millions of Americans' Social Security numbers.

The lawsuit comes days after reports emerged that Musk and DOGE had gained access to federal payment systems. Lawmakers have also called for investigations into Musk's apparent takeover of the Treasury Department. Senators Ron Wyden (D-WA) and Elizabeth Warren (D-MA) wrote to Bessent demanding to know whether he had given Musk "full access" to the federal government's payment systems.

Wyden, the ranking member of the Senate Committee on Finance, expressed concerns about the potential risks of Musk's access, stating that "these payment systems simply cannot fail, and any politically-motivated meddling in them risks severe damage to our country and the economy." Wyden also asked about what information security measures were taken to ensure that Musk and DOGE's access to government payment systems "does not result in hackers and foreign spies breaching or otherwise gaining access to the Fiscal Service's payment systems."

Warren, in a separate letter, asked what safeguards are in place to ensure access to these systems isn't abused, as well as what measures are being taken to protect Americans' sensitive data, including Social Security numbers. Warren asked that Bessent respond to her questions by February 7th, while Wyden requested a response by February 12th.

National security lawyer Bradley Moss believes that the administration could face other legal challenges to DOGE's attempts to gut the federal bureaucracy. Organizations whose funding is cut due to the freeze in USAID payments could sue, as could federal employees who get purged by DOGE. Congress, too, could challenge DOGE's efforts to "impound funds that Congress appropriated to particular agencies, contracts, or programs," Moss said.

Moss also criticized President Trump's actions, stating that "he is pushing all the boundaries to see what he can accomplish before anyone can legally stop him, if ever. It remains to be seen if the courts will check his authoritarian actions, as it is clear Republican majorities in Congress will not."

The lawsuit and lawmakers' concerns highlight the growing controversy surrounding Musk's alleged takeover of the federal budget. As the situation unfolds, it remains to be seen how the courts and Congress will respond to these allegations and what implications they may have for the American people and the economy.