A federal watchdog is launching an investigation into security measures surrounding the U.S. Treasury’s payments system, as a federal judge weighs whether Elon Musk’s Department of Government Efficiency (DOGE) gaining access to the system was unconstitutional.
Amid a growing wave of legal challenges against DOGE, the Treasury Department’s Inspector General has announced an audit, following Democratic lawmakers’ concerns over access granted to Marko Elez, a longtime Musk associate. Elez, who had temporary edit privileges, could have altered payment entries before access was revoked by an interim court ruling.
The Treasury payment system holds personal data on millions of Americans and manages trillions of dollars in federal funds for government programs.
Musk, who has been tasked by Trump with eliminating wasteful spending, has already disrupted multiple federal agencies, halting programs, canceling contracts, and laying off thousands of government employees.
Treasury Deputy Inspector General Loren Sciurba said the audit will examine two years of transactions to assess Musk’s claims that his team uncovered billions in fraudulent payments.
The review—requested by Senators Elizabeth Warren and Ron Wyden—will begin immediately and is expected to conclude by August.
The audit coincides with a Washington court case in which Democratic attorneys general from 14 states are challenging the legality of DOGE. The lawsuit argues that Trump violated the U.S. Constitution by creating a federal agency without congressional approval.
The attorneys general claim Musk has exercised “virtually unchecked power”, making unilateral cuts across federal agencies without oversight.
One of the most significant controversies involves USAID, the U.S. government’s foreign aid agency, which Musk’s team shut down and placed its workforce on leave. However, a judge ruled Thursday that the Trump administration must temporarily lift the funding freeze on USAID’s humanitarian programs.
New Mexico’s Justice Department, leading the suit, alleges that DOGE has “unraveled federal agencies, accessed sensitive data, and caused widespread disruption” for state governments, federal employees, and the public.
The plaintiffs are asking the court to:
The hearing follows Musk’s recent call for the U.S. government to ‘delete entire agencies’ in an effort to reduce waste.
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