A legal battle is brewing over the US Treasury’s decision to grant Elon Musk’s Department of Government Efficiency (DOGE) access to sensitive financial and personal data.

The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) has reportedly sued the Treasury, alleging the department unlawfully shared confidential details of millions of Americans.

Government Oversight Concerns

The lawsuit raises concerns about privacy, government oversight, and Musk’s growing influence in federal operations. The AFL-CIO, the largest union group in the United States, filed the lawsuit in a Washington, DC, federal court, targeting the Treasury Department and Secretary Scott Bessent.

The complaint accuses the government of a “systematic and continuous disclosure” of personal financial records to Musk and DOGE. Union leaders argue that Americans who submit financial details to the government should not have their information exposed to private entities with no legal oversight.

The controversy has sparked a broader political debate, with top Democratic leaders, including Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren, reportedly condemning the data-sharing arrangement.

Schumer announced plans to introduce legislation that would curb unauthorized access to Treasury payment systems. Warren echoed concerns, stating that the system is now vulnerable to Musk’s influence.

The lawsuit referenced a post from Senator Ron Wyden on Bluesky, in which he claimed sources informed him that DOGE had been granted “full access” to the Treasury’s payments system.

This system contains the names, Social Security numbers, home addresses, email addresses, and bank account details of millions of Americans. Wyden had previously demanded an explanation from Bessent regarding Musk’s DOGE access.

DOGE Price Performance

The controversy has also rattled the cryptocurrency market. Dogecoin (DOGE), often associated with Musk, has recorded a nearly 15% decline in the weekly chart, trading at $0.2764 at the time of publication.

The sell-off coincided with broader crypto market turmoil, with Bitcoin, Ethereum, and XRP also attempting a recovery after a string of losses. Technical indicators suggest that DOGE remains in bearish territory.

Musk’s influence over Dogecoin’s price has long been a topic of debate, with his social media activity frequently driving price fluctuations. Now, his political role adds another layer of uncertainty, particularly as his team’s involvement in Treasury matters raises concerns about financial oversight.

Despite the Treasury’s assurances that no payments have been blocked, questions emerged about the extent of DOGE’s authority and its impact on federal financial operations.