Democratic representatives are calling for an investigation by the Treasury Department regarding the level of access granted to Elon Musk’s team over the government’s payment systems. Their concerns hinge on potential threats to both the economy and national security, along with possible breaches of laws designed to protect Americans’ privacy and tax information.
On Friday, lawmakers dispatched letters to both the deputy inspector general of the Treasury and the acting inspector general for tax administration. Senator Elizabeth Warren from Massachusetts also directed a letter to Treasury Secretary Scott Bessent, detailing apprehensions about the opacity and lack of accountability surrounding the access the Musk-led team has been afforded to federal financial systems.
The payment system in question is responsible for managing trillions of dollars annually, encompassing tax refunds, Social Security payments, and various other expenditures. This situation brings up serious questions regarding the legal standing of the review initiated by Musk’s Department of Government Efficiency.
Warren and fellow Democratic Senator Ron Wyden from Oregon, who are the primary authors of the inspectors general letter, have raised numerous alarms about a review that remains largely hidden from public view. As the Democrats work to counteract the spending reductions proposed by former President Donald Trump, especially those linked to DOGE, a contentious standoff in Washington appears imminent, which could have wider ramifications. Should there be any disruption in these systems, it could result in delayed payments for citizens or potentially lead to unauthorized sharing of sensitive personal data.
In her correspondence to Bessent, Warren criticized the secretary, stating that he has “deflected and avoided key questions” and “provided information that appears to be flatly contradicted by new public reports.” She emphasized the need for transparency, noting that the American populace, especially families worried about their Social Security, Medicare, and other local programs, deserve clear and honest information about the situation.
Typically, requests for investigations are directed toward Treasury’s inspector general; however, recent actions by Trump leading to the dismissal of about 17 independent inspectors general across various government sectors have created a gap in oversight. The Treasury Department has asserted that the review’s intent is solely to evaluate system integrity without making any changes. Nevertheless, sources conversant with the matter indicate that Musk’s team initially sought ways to halt payments from the U.S. Agency for International Development, an agency that both Trump and Musk reportedly wish to eliminate.
Additionally, several labor unions and advocacy organizations have taken legal action to block the review of the payment system over concerns regarding its legality. On Thursday, U.S. District Judge Colleen Kollar-Kotelly imposed restrictions on DOGE’s access to the Treasury’s payment systems, limiting it to read-only capabilities. Among the signatories of the letters were Democratic Senators Ruben Gallego of Arizona, Jack Reed of Rhode Island, Raphael Warnock of Georgia, and Sheldon Whitehouse of Rhode Island.
