US Judge Rejects Labor Department Request to Ban Elon Musk’s DOGE
A Washington, D.C., federal court allowed Elon Musk’s Department of Government Efficiency (D.O.G.E) to access US Department of Labor data. The AFL-CIO sued Elon on Saturday, prompting the judgment.
Summary
A US court refused a labor union’s plea to prohibit Elon Musk’s D.O.G.E. from Labor Department networks, finding no damage.
Elon has access to sensitive government data, including Tesla, SpaceX, and rival probes, under Trump’s D.O.G.E.
Elon’s access to labor data might provide him inside knowledge regarding investigations against his firms (Tesla, SpaceX, X, and The Boring Company), the AFL-CIO argued in its court petition. Judge John Bates expressed worry about Elon’s behavior but decided that the AFL-CIO had failed to establish damage.
Bates’s decision temporarily benefits Elon and his cost-cutting quest but hurts labor unions. After the verdict, AFL-CIO President Liz Shuler called it “a setback, but not a defeat” and said that the union will submit additional evidence to the court to “save America from Elon.”
Elon Musk’s D.O.G.E critics reaction
According to court records, the AFL-CIO alleges Elon’s team wants sensitive information on government personnel, including labor complaint and safety inquiry filers. The union fears this may reveal whistleblowers and give Elon an unfair edge over rivals under OSHA investigation.
Elon Musk’s access to BLS economic information is another key problem. These sensitive reports may impact governmental and commercial plans. Critics worry Elon may exploit such information for personal advantage, but the White House says he will recuse himself from financial conflicts.
Elon Musk isn’t subject to several federal employment restrictions. As a “special government employee,” he avoids ethical and conflict-of-interest rules. Unions are suing because Elon has “unchecked power” over America’s 2.2-million-member federal workforce due to this loophole.
In another lawsuit, federal employee unions and Democratic state attorneys general are suing the Treasury Department to limit Elon Musk’s payment record access. This matter intensified when New York Judge Paul Engelmayer temporarily blocked D.O.G.E access to Treasury data.
Engelmayer cautioned that granting Elon and his associates payment system access would increase data breaches.
His Saturday morning directive instructed all special government workers and political appointees outside the Treasury Department to delete any material they acquired since Trump‘s inauguration. Treasury authorities will not provide any data until a February 14 court hearing.
Union, politicians, and states oppose D.O.G.E.
One of Elon’s most vocal opponents is New York Attorney General Letitia James. “We’re suing over the unfettered reign Donald Trump provided Elon Musk and D.O.G.E to access Americans’ private information,” she added. James accused Elon of using government data to reduce education and healthcare. “This is wrong and illegal,” she said.
Elon criticized the Democrats for their “ironically UNDEMOCRATIC tactics.” He noted earlier scandals, stating, “They banned Bernie from running, insulted RFK unjustly, and replaced Kamala for Biden without a primary!” Now they’re persistently assaulting D.O.G.E, which is fighting taxpayer fraud, waste, and abuse!”
Treasury case hearings resume February 14. Elon’s team can access Labor Department data but not Treasury systems until then.
Liquidity shortage as Fed’s RRP facility consumes $2.5 trillion
Elon Musk has another issue when the Fed’s Reverse Repo Facility (RRP) runs empty. Since its December 2022 peak, the RRP, which manages financial system liquidity, has lost $2.5 trillion, reaching its lowest level in 1,386 days.
How it works: The Fed sells Treasury securities to financial firms to purchase them back later at a better price. The Fed reports that the RRP’s liquidity is rapidly dwindling as the US government floods bond markets to cover its deficit.
Over the last 18 months, RRP and US Treasury liquidity has surpassed Fed balance sheet contraction by $417 billion. The Fed doesn’t need to inject extra cash to balance the bond market, but it’s losing one of its major instruments to calm the market.
Deficit spending is the issue. The US owes $36.2 trillion, and $9.2 trillion will mature or require refinancing in 2025. This 25.4% of debt is a tremendous load on the bond market. President Trump started D.O.G.E to restrict federal spending by $1 billion every day.
This may reduce the deficit by 20% in year one by saving $365 billion by January 2026. The present calculations suggest reducing $5 billion each day to reduce the deficit.
Also Read: Polish Central Bank Rejects to Add Bitcoin to Reserves for Security Reasons