Elon Musk has access to US Treasury federal payments: How much power is too much?

Elon Musk’s Department of Government Efficiency (DOGE) has gained access to the United States Treasury Department’s payment system, sparking concern among lawmakers, consumer advocates, and government officials.

The Bureau of the Fiscal Service, responsible for disbursing trillions of dollars annually, including Social Security benefits and federal salaries, is now partially under the oversight of DOGE.

This development has raised alarms regarding the security of taxpayer data and the Trump administration’s influence over federal financial operations.

The White House recently issued a broad freeze on federal grants and loans, which disrupted several assistance programs and state Medicaid payments.

Though the freeze was later lifted, DOGE’s access to the Treasury’s payment system has fuelled concerns that the administration could unilaterally halt or alter federal payments based on political considerations.

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What are the concerns?

Several Democratic lawmakers, including Senators Elizabeth Warren and Ron Wyden, have expressed concerns over DOGE’s control of the federal payment system. They argue that allowing an unelected task force to manage such a critical financial infrastructure could lead to misuse and breaches of privacy.

A lawsuit filed by two labour unions and the Alliance for Retired Americans alleges “unlawful ongoing, systematic, and continuous disclosure of personal and financial information” to Musk and DOGE. US Treasury Secretary Scott Bessent and the department itself have been named as defendants in the case.

“Controlling the system could allow the Trump Administration to unilaterally — and illegally — cut off payments for millions of Americans,” Warren wrote in a letter to Bessent, adding that the move puts the financial security of families and businesses at risk while giving DOGE access to millions of Americans’ protected financial data.

Senator Ron Wyden echoed these concerns, warning that Social Security payments could be impacted “whether intentional or unintentional.” He accused Musk of forcing out career public servants to advance his agenda, which aligns with the Trump administration’s broader push to cut federal spending.

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How did DOGE gain control of the payment system?

DOGE was established by Trump through an executive order, which granted it “full and prompt access to all unclassified agency records, software systems, and IT systems.”

Though it is not a federal department, DOGE has been tasked with cutting federal spending, a directive that now extends to financial disbursements from the Treasury.

Musk’s access to the system follows the resignation of Treasury’s acting Deputy Secretary, David Lebryk, who stepped down after DOGE requested access to sensitive Treasury data. His departure has fuelled concerns about political interference and the erosion of institutional safeguards within the Treasury.

A Treasury official clarified in a letter to Congress that DOGE personnel, specifically tech executive Tom Krause, have “read-only access” to the system. However, lawmakers remain sceptical, noting that Musk has publicly stated on social media that DOGE has actively halted payments to organisations, such as Lutheran Family Services, which provides social services to refugees.

“Some Republicans are trying to suggest that Musk only has ‘viewing access’ to Treasury’s highly sensitive payment system as if that’s acceptable either,” said Senator Patty Murray. “But why on earth should we believe that — particularly when he is saying the exact opposite loudly and repeatedly for everyone to see?”

How have the protests erupted?

Public outcry over DOGE’s role in the Treasury’s payment system has resulted in demonstrations outside the Treasury Department.

Protesters gathered under the banner of the “Nobody Elected Elon” rally, organised by left-leaning groups such as Indivisible, MoveOn, and the Working Families Party.

Chants of “Deport Musk” and “Down with Trump” were heard as Democratic lawmakers addressed the crowd. Rep. Maxwell Frost criticised the billionaire for exacerbating issues like healthcare costs and income inequality, while Senator Elizabeth Warren called the move a “blatant power grab.”

“This amounts to a coup,” said Montgomery County resident Maureen Jais-Mick, one of the demonstrators. “He’s here to seize power for himself, we are here to fight back.”

What is the potential risk?

The Bureau of the Fiscal Service plays a critical role in the federal government, managing payments totaling more than $5.4 trillion in fiscal 2023 alone. Nearly 97 per cent of these payments were made electronically, ensuring timely disbursement to beneficiaries, contractors, and federal employees.

The system also handles tax refunds and provides payroll services for over 21,000 government workers.

Access to such a vital financial network has historically been limited to non-political career officials. Critics argue that Musk’s involvement jeopardises the integrity of the system, particularly given his business ties with foreign entities such as China, where Tesla operates its largest factory.

The personal data within the system, including Social Security numbers and bank account details, could be exploited if not handled securely. Experts warn that unauthorised access could pose a national security risk, particularly if sensitive information about government employees or defence contractors is exposed.

While Trump has publicly pledged to protect Social Security, the involvement of DOGE raises concerns that payments could be delayed or used as leverage in political negotiations.

So far, neither Musk nor Trump has explicitly stated that Social Security is a target for budget cuts, but watchdog organisations remain wary of potential disruptions.

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In response to mounting criticism, the Treasury Department has maintained that DOGE’s role is limited to evaluating the efficiency of government spending.

However, given Musk’s repeated statements about cutting off payments and his organisation’s push for reduced federal expenditures, concerns about future disruptions persist.

Lawsuits and congressional investigations are likely to shape the next phase of this development.

With inputs from agencies