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letitia james
'No One Is Above the Law': Judge Blocks Musk Wrecking Crew From Treasury Payment System
New York Attorney General Letitia James, who led 19 state AGs in filing a suit, said the emergency order will keep "the world’s richest man... from accessing Americans' private data."
Feb 08, 2025
A federal judge early Saturday morning blocked Elon Musk's highly controversial Department of Government Efficiency, or DOGE, from further access to a sensitive and closely guarded Treasury Department payment system, warning of "irreparable harm" presented by the threat to the personal and financial data of millions of Americans.
In an emergency order that followed from a lawsuit filed by 19 state attorneys general on Friday, U.S. District Judge Paul A. Engelmayer said the Treasury Dept., in addition to suspending Musk and his team from access, must "immediately destroy any and all copies of material downloaded from the Treasury Department's records and systems, if any."
In the coalition's lawsuit, led by New York Attorney General Letitia James, the states argued that allowing DOGE personnel—who have been characterized as far-right libertarian "goons" and a "demolition crew" intent on gutting federal agencies from the inside out—access to the Treasury system was unlawful in the first place and could give them the ability "to block federal funds to states and programs providing health care, childcare, and other critical services"—none of which they are authorized to do.
Judge Engelmayer, in his decision, said the named defendants in the suit—President Donald Trump, his Treasury Secretary Scott Bessent, and the Treasury Department—will be compelled to show cause at a hearing on Feb. 14 before a separate judge presiding over an existing challenge to DOGE's access to the system.
In a statement following the ruling, James said: "This morning, we won a court order blocking Elon Musk, the world’s richest man, from accessing Americans' private data. Musk and his DOGE employees must destroy all records they've obtained. I've said it before, and I'll say it again: no one is above the law."
Under the order, as the Washington Postreports, "the Trump administration is prohibited from giving access to political appointees, special government employees or government employees that are not assigned to the Treasury Department."
On Friday, Wiredreported that an internal agency at Treasury had assessed the DOGE personnel place inside the department as "an insider threat."
"There is ongoing litigation, congressional legislation, and widespread protests relating to DOGE's access to Treasury and the Bureau of the Fiscal Service," reads a section of an email from the internal agency reviewed by the news outlet.
"If DOGE members have any access to payment systems," the email continued, "we recommend suspending that access immediately and conducting a comprehensive review of all actions they may have taken on these systems."
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Another Federal Judge Temporarily Blocks Trump's Funding Freeze
"This administration's reckless plan to block federal funding has already caused chaos, confusion, and conflict throughout our country," said New York's attorney general, who is leading the legal challenge.
Jan 31, 2025
A federal judge in Rhode Island on Friday delivered another blow to U.S. President Donald Trump's effort to dramatically overhaul the government, temporarily blocking the Republican's funding freeze that sparked chaos and confusion this week.
U.S. District Judge John J. McConnell Jr. granted a temporary restraining order in response to a lawsuit filed by the attorneys general of the District of Columbia and 22 states. His move came after Washington, D.C.-based District Judge Loren AliKhan issued an administrative stay that blocked Trump's funding freeze until a Monday hearing, in a case launched by nonprofits.
After AliKhan's Tuesday decision, the Trump administration rescinded the relevant memo from Matthew Vaeth, acting director of the Office of Management and Budget (OMB). However, White House Press Secretary Karoline Leavitt said on social media Wednseday: "This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo."
"Why? To end any confusion created by the court's injunction," Leavitt wrote, stressing the president's executive orders "on federal funding remain in full force and effect, and will be rigorously implemented."
Citing Leavitt's post in a 13-page order, McConnell explained that the administration tried to claim "that this matter is moot because it rescinded the OMB directive. But the evidence shows that the alleged rescission of the OMB directive was in name only and may have been issued simply to defeat the jurisdiction of the courts. The substantive effect of the directive carries on."
The temporary restraining order is in effect until further action from McConnell, an appointee of former Democratic President Barack Obama. Although the Trump administration can move forward with its review of federal funds, it cannot "pause, freeze, impede, block, cancel, or terminate" funding to the states or D.C. The judge also prohibited "reissuing, adopting, implementing, or otherwise giving effect to the OMB directive under any other name or title or through any other defendants."
"McConnell's order was expected, as he had signaled following a hearing Wednesday that he was inclined to issue the temporary pause of the Trump administration's directive," CBS Newsnoted Friday.
Still, the Democrats behind the legal challenge celebrated their win. New York Attorney General Letitia James said in a statement that "this administration's reckless plan to block federal funding has already caused chaos, confusion, and conflict throughout our country. In the short time since this policy was announced, families have been cut off from childcare services, essential Medicaid funds were disrupted, and critical law enforcement efforts were put in jeopardy."
"I led a coalition of attorneys general in suing to stop this cruel policy, and today we won a court order to stop it," she continued.
"The president cannot unilaterally halt congressional spending commitments. I will continue to fight against these illegal cuts and protect essential services that New Yorkers and millions of Americans across the country depend on."
Rhode Island Attorney General Peter Neronha said that "I am grateful for Judge McConnell's careful consideration of this matter and for seeing the irreparable harm that this directive would cause, and frankly has already caused, Americans across the country."
"As we allege in our complaint, the executive branch does not have the authority to intercept crucially important federal funding that the Congress has already allocated to the states, and on which Americans rely," he emphasized. "This directive targets public safety, healthcare, veterans' services, childcare, disaster relief, and countless other cornerstones of American life."
"Make no mistake: This federal funding pause was implemented to inspire fear and chaos, and it was successful in that respect," he added. "These tactics are intended to wear us down, but with each legal victory we reaffirm that these significant and unlawful disruptions won't be tolerated, and will certainly be met with swift and immediate action now and in the future."
As The New York Timesreported:
Judge McConnell's Friday order does not block the Trump administration from continuing its review, only from defunding those programs that fail its tests in the states that sued—New York, California, Illinois, Rhode Island, New Jersey, Massachusetts, Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Mexico, Oregon, Vermont, Washington and Wisconsin, along with the District of Columbia.
In that sense, it may create a divide between Democratic states that will continue to have funds flowing and Republican states that will still face uncertainty.
The judge's decision came as Trump and billionaire Elon Musk—the richest person on Earth and chair of the president's Department of Government Efficiency (DOGE)—attack the federal government in various ways, including by trying to purge the federal workforce.
As
The Washington Post reported Friday that the U.S. Treasury Department's highest-ranking career official, David Lebryk, is leaving his post after clashing with Musk allies over access to payment systems that the agency uses to distribute over $6 trillion, Reuters revealed the DOGE leader's said have "locked career civil servants out of computer systems that contain the personal data of millions of federal employees."
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16 AGs Push Congress to Pass Federal Ban on Price Gouging
"During and after a crisis, it is unfair—and harmful to our economy—for companies to reap higher profits for selling goods and services that families need to survive."
Oct 30, 2024
The attorneys general of 15 states and the District of Columbia on Wednesday wrote to the top Democrats and Republicans in Congress to advocate for a federal prohibition on price gouging.
"Businesses should never be able to hike prices during an emergency just to increase their profits," said New York Attorney General Letitia James, who led the letter. "When companies take advantage of major disruptions and raise prices of food and supplies that New Yorkers rely on, my office holds them accountable, getting people their money back and protecting their wallets."
"Our federal government should have the same power to protect Americans when disaster strikes and stop price gouging at the national level that threatens both hardworking families and small businesses," asserted James, a Democrat.
The letter points out that "over 40 states across the country make price gouging unlawful, reflecting the widespread national consensus that exists, across ideological and regional differences, that in the immediate run-up to and aftermath of a crisis, it is unfair—and harmful to our economy long-term—to reap higher profits for selling goods and services people need to survive."
"As crises, whether natural or human in origin, become more common... now is the time to work constructively in a bipartisan fashion to create federal price gouging protections."
"Despite that consensus, there is currently no federal price gouging prohibition—and individual states face heightened challenges when protecting consumers from price gouging when so many product supply chains are nationwide," it continues. "A federal price gouging prohibition would provide critical partnership to state enforcement and protect consumers and small businesses alike."
The letter—addressed to House Speaker Mike Johnson (R-La.) and Minority Leader Hakeem Jeffries (D-N.Y.) as well as Senate Majority Leader Chuck Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.)—lays out how price gouging bans address market failures and strengthen the economy, explaining that "they act like 'circuit breakers' in a stock market: They put a pause on panic-driven price changes and give everyone a chance to make sure they are making the right pricing choices for the long-term."
Price gouging prohibitions also "prevent inefficient pricing overreactions in the heat of a crisis" and "help to prevent hoarding," the letter adds. Further, they "can restrain inefficiently high prices for products where there is very little competition."
"A federal price gouging prohibition that complemented state prohibitions would allow federal enforcement agencies, such as the Federal Trade Commission, to identify and restrain unjustified and irrational price increases throughout the entire supply chain, unconstrained by the complications of state-by-state enforcement," the attorneys general wrote. "Such a prohibition should not preempt state laws, but complement and strengthen them by focusing federal enforcement on price gouging that cannot practicably be stopped by a single state."
"Our states provide many different models for how such a price gouging statute might be framed," the coalition noted. "But as crises, whether natural or human in origin, become more common and the cost of living continues to be too high for working families, we believe now is the time to work constructively in a bipartisan fashion to create federal price gouging protections to complement price gouging protections that already exist in almost every state."
In addition to the D.C. attorney general, James was joined by the AGs in Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Oregon, New Jersey, New Mexico, New York, Pennsylvania, and Vermont.
"During and after a crisis, it is unfair—and harmful to our economy—for companies to reap higher profits for selling goods and services that families need to survive," said California Attorney General Rob Bonta. "That is why California's price gouging law protects Californians during and after wildfires, severe weather storms, and other emergencies."
"A federal price gouging prohibition that complements state law would build on successful partnerships between states and the federal government to protect consumers by making it easier to enforce price gouging prohibitions nationally, up the supply chain," the Democrat added. "This would benefit California consumers and small businesses who currently bear the brunt of their suppliers' price setting."
The letter comes amid a fossil fuel-driven climate emergency featuring extreme weather that is increasingly impacting U.S. communities and less than a week away from Election Day, when Americans will choose the next Congress and President. In the race for the White House, former Republican President Donald Trump faces Democratic Vice President Kamala Harris. In August, the Democrat proposed a federal ban on price gouging by food supplies and grocery stores.
"I still remember our mother sitting at that yellow formica table late at night, cup of tea in hand, a pile of bills in front of her, trying to make it all work. And I've heard from so many of you who are facing even greater financial pressures," Harris said in a Tuesday campaign speech. "I will enact the first-ever federal ban on price gouging on groceries, cap the price of insulin, and limit out-of-pocket prescription costs for all Americans. I will fight to make sure that hardworking Americans can actually afford a place to live."
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