Musk’s Takeover of Federal Agencies Sparks Lawsuits and Privacy Concerns

Politico reports that Elon Musk’s rapid takeover of federal agencies and databases has caused widespread concern and several lawsuits, including Alliance for Retired Americans. Government Employees, Service Employees International Union v. Scott Bessent, Secretary of the Treasury, Department of the Treasury, and Bureau of the Fiscal Service.

Musk’s Department of Government Efficiency (DOGE) has been accused of violating privacy and cybersecurity laws with its takeover of federal agencies, but their attempts to shut down the US Agency for International Development (USAID) and to gain access to the Treasury Department’s payment systems are causing the most alarm.

Experts warn these actions threaten national security, personal privacy, and the integrity of federal operations.

The background of this controversy lies in Trump’s long-standing efforts to reduce government bureaucracy. Established through legislation, USAID cannot be easily dismantled, and Musk’s process raises constitutional concerns.

Treasury’s payment systems hold vast amounts of taxpayer data, which is strictly protected under federal law. Similar security concerns emerged in 2013 when hackers—allegedly from China—breached Office of Personnel Management (OPM) databases, exposing federal employees’ sensitive information.

Given this history, experts argue that Musk’s sweeping access to critical systems lacks legal foundation and oversight.

Legal experts and unions have become plaintiffs in lawsuits arguing that DOGE’s actions violate the Privacy Act of 1974 and cybersecurity laws. Trump has downplayed concerns, while some lawmakers insist that any agency reorganization must go through Congress. The courts are likely to play a key role in resolving these disputes.

Attorneys advising clients on regulatory compliance should monitor how courts handle executive authority over federal agencies. These legal battles could redefine presidential powers and government restructuring processes.