Treasury Department Sued Over Disclosure of Sensitive Financial Data
The Department of Government Efficiency's access to sensitive U.S. Treasury data has sparked controversy. This action, spearheaded by Elon Musk, has led to a lawsuit from labor unions and an advocacy group. They argue that the data transfer violates the Privacy Act of 1974 and the Internal Revenue Code, raising significant privacy concerns.
In response to the lawsuit, late on January 5, the Department of Justice agreed to limit access to sensitive financial data to two DOGE workers with "read only" access to Social Security numbers and banking data.
DOGE's Role
Since inauguration day tech billionaire Elon Musk has been a key player associated with the Trump administration. He’s referred to as a special government employee, meaning he’ll spend 130 days or less working for the government in a year. Musk has been given office space at the White House.
President Donald Trump has put Musk in charge of the Department of Government Efficiency (DOGE), which Trump established through an executive order. This order states that DOGE will modernize “federal technology and software to maximize governmental efficiency and productivity.”
DOGE and the Treasury
The U.S. Treasury is the part of the government that manages the country’s money. It’s responsible for Social Security benefits and tax refunds. It’s like a national bank. Within the Department of the Treasury is the Bureau of the Fiscal Service. It helps manage the government’s finances by overseeing the collection of revenue, paying bills, and managing federal borrowing. It’s referred to as “The Nation’s Checkbook.” In the same way that a checkbook helps you track your finances, the treasury operates the payment system of the federal government.
Musk recently spearheaded the effort to get DOGE access to the Treasury’s federal payment system. He has suggested that gaining access to this information may help DOGE discover and thwart incidents of fraud or illicit payments. DOGE did get access, and concerns and lawsuits have arisen in response.
The sensitive information and financial data that DOGE team has purportedly gained access to in the Treasury Department’s payment system includes taxpayer personal data such as their:
- Names
- Phone numbers
- Social security numbers
- Birthplaces
- Home addresses
- Email addresses
- Bank account information
A Lawsuit With an Impact
This incident of data sharing has resulted in labor unions and an advocacy group choosing to sue treasury officials. Plaintiffs include:
- The American Federation of Government Employees
- The Alliance for Retired Americans
- The Service Employees International Union
Plaintiffs claim that federal law has been violated by this financial information transfer. They argue that the Privacy Act of 1974 and the Internal Revenue Code have been violated.
The Privacy Act of 1974 was created by lawmakers to protect personal information held by the U.S. government. It ensures that federal agencies collect, maintain, and use personal data responsibly.
The Internal Revenue Code (IRC) is a comprehensive set of tax laws in the United States that governs the collection and management of federal taxes. It includes provisions designed to protect the confidentiality of taxpayer information. Specifically, Section 6103 of the IRC outlines the rules regarding the confidentiality and disclosure of tax return information. It restricts the sharing of this information to specific circumstances and authorized entities.
In response to the lawsuit, the Justice Department has agreed to temporarily halt access by DOGE workers from obtaining Americans' sensitive financial information.
Meanwhile, on February 6, DOGE gained access to key records within the Health and Human Services department, including Medicare and Medicaid records. Musk said in a post on X regarding Medicare and Medicaid that "“Yeah, this is where the big money fraud is happening.”
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