Musk-led DOGE’s access to US treasury data raises alarms over security, financial stability

“Any hint of the selective suspension of congressionally authorised payments will be a breach of trust and ultimately, a form of default,” they wrote in an op-ed for The New York Times, as cited by AP. “Our credibility, once lost, will prove difficult to regain,” they added, stressing the dangers of “arbitrary and politically motivated control over federal payments,” which they argue could severely damage US democracy.

In response, Musk downplayed the concerns on his social media platform X, stating, “We need to stop government spending like a drunken sailor on fraud and waste, or America is going to go bankrupt. That does mean a lot of grifters will lose their grift and complain loudly about it. Too bad. Deal with it.”

However, financial experts argue that DOGE’s aggressive approach could destabilise the US economy.

Andrew Metrick, director of the Yale Program on Financial Stability, told AP, “DOGE’s actions as a ‘go fast and break things’ group pose a danger to the US financial system and the dollar’s status as the world’s reserve currency.”

Metrick further warned, “They may not care about undermining government programmes, but they should care about the damage to the dollar and the safety of US government debt.” He added that “crossing the line into what could be seen as a default event, especially as the US approaches its debt limit, would be disastrous.”

Cybersecurity experts are equally alarmed. John Davisson, senior counsel at the Electronic Privacy Information Center, described DOGE’s access as “the largest and most consequential data breach in US history,” in comments to AP. He explained that the Treasury’s databases contain sensitive personal information, including tax records, Social Security numbers, medical details, and military data.

Davisson criticised the argument that DOGE’s access was about improving efficiency. “This is about control,” he told AP. “There are legitimate ways to improve government efficiency—through legislation, regulation, and trained personnel. This is about gaining control over databases, and by extension, federal agencies.”

Amid growing legal battles, a US District Court judge recently limited DOGE’s access to Treasury payment systems, restricting it to just two individuals, including Tom Krause, who now holds a key role as fiscal assistant secretary at the Treasury.

Lisa Gilbert, co-president of Public Citizen, one of the groups suing to block DOGE’s access, said the courts are taking the matter seriously.

“Our federal records contain protected personal information,” she told AP. “They are moving fast and doing things that normal governments wouldn’t attempt, but the courts are responding appropriately.”

Trump, defending Musk’s role, claimed on Fox News, “Musk is not gaining anything from this. We’re going to find hundreds of billions of dollars in fraud and abuse—that’s what people elected me to do.”

Summing up the concerns, Metrick told AP, “I am nervous they have a hammer, and the whole government looks like a nail to them. But the Treasury is a thumb.”