A federal judge on Thursday restricted the handling of sensitive Department of Treasury data amid concerns over access granted to allies of Elon Musk leading a government review.

The decision follows a lawsuit filed by labor unions arguing that the Department of Government Efficiency (DOGE) led by Musk appointees could compromise financial records, The Wall Street Journal reports.

What Happened: The ruling, issued by U.S. District Judge Colleen Kollar-Kotelly in Washington, allows two Musk associates, Tom Krause and Marko Elez, to retain access to a Treasury payment system processing financial data of millions of Americans. However, they are now limited to “read-only” privileges and are prohibited from sharing information externally, according to WSJ.

This follows a lawsuit filed Monday by AFL-CIO and other labor organizations, represented by Public Citizen, seeking to block DOGE's access to the Bureau of the Fiscal Service, citing risks of exposing social security numbers and banking details. The court's order is temporary while Kollar-Kotelly considers a broader injunction.

Also Read: Tesla Sales Drop 60% In Germany: Are Elon Musk’s Politics Getting In The Way Of EV Growth?

DOGE, created under President Donald Trump's administration, was initially an advisory body but was formally integrated into the president’s Executive Office through a day-one executive order.

Musk's team has sought federal databases and spending records, drawing scrutiny from government officials and watchdog groups. The Department of Treasury confirmed Krause and Elez were given special employment status and access to financial records, though the Justice Department argued in court that neither had shared data with outside parties, including Musk, WSJ reports.

Why It Matters: The lawsuit signals growing resistance to DOGE's actions as it gains access to government agencies. According to a Wednesday report, DOGE representatives were granted access to Centers for Medicare and Medicaid Services (CMS) payment systems. Musk said on X that fraud within CMS represented “big money fraud,” aligning with DOGE's mission to cut government spending.

The ruling raises concerns about transparency, as Musk's appointees push forward with their mandate to cut $1 trillion from federal expenditures. Labor unions argue that DOGE's expanding influence threatens the privacy of millions who rely on federal programs.

While the judge's order limits immediate risks, the broader battle over DOGE's authority is ongoing.

Read Next:

• ‘Tariffs Are A Means To An End’: Bessent Defends Trade Strategy, Pushes Growth Plan

Photo: Shutterstock