US judge declines to block Elon Musk's DOGE from Labor Department systems

A federal judge on Friday declined to block billionaire Elon Musk’s access to the U.S. Department of Labor’s systems, delivering an early setback to government unions challenging his influence over federal agencies.

The ruling by U.S. District Judge John Bates marks the first legal decision in a lawsuit by the AFL-CIO, one of the largest labor unions in the country.

The union argues that Musk’s Department of Government Efficiency, or DOGE, could gain access to sensitive information about investigations into his own companies and competitors.

Bates said the AFL-CIO had not demonstrated harm from the government’s actions, though he acknowledged concerns about the potential impact of Musk’s role.

AFL-CIO President Liz Shuler called the ruling “a setback, but not a defeat” and vowed to present more evidence to support the union’s case. A spokesperson for the Labor Department did not immediately respond to a request for comment.

Musk, the world’s richest person, has been tasked by President Donald Trump with leading DOGE, a controversial initiative aimed at cutting government costs and identifying fraud.

The program has drawn criticism from lawmakers and advocacy groups, who accuse Musk of overstepping his authority by attempting to dismantle key government agencies and push mass layoffs of federal employees.

DOGE has already targeted the U.S. Agency for International Development, leading to sweeping layoffs and the cancellation of government consulting contracts.

The rapid restructuring of federal agencies has prompted multiple legal challenges, including a lawsuit from federal employee unions accusing the Treasury Department of unlawfully sharing financial data with Musk’s team.

The Treasury Department agreed this week to temporarily halt further data transfers while the case proceeds.

The AFL-CIO’s lawsuit focuses on concerns that Musk’s team could obtain non-public information from the Labor Department’s Occupational Safety and Health Administration, which oversees workplace safety investigations into Tesla, SpaceX, and The Boring Company.

The union also fears DOGE could access confidential data from the Bureau of Labor Statistics, as well as sensitive details about federal employees, including records of those who have filed labor complaints or sought protections for workplace violations.

The White House has insisted that Musk will recuse himself from decisions where he has a conflict of interest. As a special government employee, he is subject to some ethics regulations but is not bound by all federal conflict-of-interest rules.

The legal battle comes as Musk’s influence over federal agencies continues to grow, giving him unprecedented power over the 2.2-million-member federal workforce.

With more lawsuits and potential court rulings ahead, his rapid overhaul of government operations remains far from settled.