The Trump administration is making an urgent push to end a court order barring top officials’ access to the federal government’s massive payment system operated by the Treasury Department, saying the “remarkable intrusion” is unconstitutional and should be “dissolved immediately.”
“Basic democratic accountability requires that every executive agency’s work be supervised by politically accountable leadership, who ultimately answer to the president,” Justice Department attorneys wrote in the 11-page filing, calling the order “impermissible” and “anti-constitutional.”
The attorneys are asking Manhattan-based U.S. District Judge Jeannette Vargas to quickly end or modify the order to ensure Treasury Secretary Scott Bessent and his top leadership can be briefed on the payment system and perform their legally required roles.
A different federal judge, U.S. District Judge Paul Engelmayer, issued the orderearly Saturday, barring system access to all but career employees who had taken proper trainings. That order came in response to states that sued over the access that Elon Musk allies embedded within Treasury had been given, arguing that the team from the so-called Department of Government Efficiency appeared to be putting the enormous database at risk of hacking or manipulation.
Justice Department lawyers say they are negotiating with the states to come up with a quick agreement to narrow Engelmayer’s order. Early Monday, Vargas said that if they failed to reach an agreement by 5 p.m. she would demand an expedited review of the matter by late Monday night.
The Engelmayer order set off a furor among Trump allies who suggested it was an improper incursion by a judge against the president’s ability to operate the Treasury that might even bar Bessent himself from fully running the department. Several Trump allies suggested the administration should consider ignoring the order.
But in the filing, the Justice Department emphasizes that Treasury officials have been adhering to the strict limits imposed by Engelmayer. Only one official covered by the order — Musk ally Thomas Krause — had access to the system prior to the judge’s restriction. In a seven-page statement,Krause emphasized he has discontinued access and said he had complied with the orders limits.
Prior to those limits, Krause said his access was considered “over the shoulder” — meaning he could view data accessed by other authorized Treasury employees as well as copies of “source code.” The Justice Department indicated that a second Musk ally — Marko Elez — who resigned last week amid a furor over racist social media posts, had previously had access to copies of the code in a “sandbox environment.” Though Musk has suggested rehiring Elez, the late Sunday filing from the Justice Department only mentions his departure and indicates he returned his equipment and credentials.
Krause emphasized that despite his adherence to the order, it’s urgent for Treasury leaders to resume access to the system to fulfill their responsibilities. In addition, the system is routinely accessed by outside agencies and organizations who make payments to the government.
The Justice Department is urging Vargas to end Engelmayer’s restrictions immediately or, short of that, postpone them until additional arguments can be made in court.
