Musk Takes Control of US Treasury Payments Systems

Tesla and SpaceX CEO Elon Musk arrives to the inauguration of US President-elect Donald Trump in the Rotunda of the US Capitol on January 20, 2025 in Washington, DC. (Reuters)
Tesla and SpaceX CEO Elon Musk arrives to the inauguration of US President-elect Donald Trump in the Rotunda of the US Capitol on January 20, 2025 in Washington, DC. (Reuters)
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Musk Takes Control of US Treasury Payments Systems

Tesla and SpaceX CEO Elon Musk arrives to the inauguration of US President-elect Donald Trump in the Rotunda of the US Capitol on January 20, 2025 in Washington, DC. (Reuters)
Tesla and SpaceX CEO Elon Musk arrives to the inauguration of US President-elect Donald Trump in the Rotunda of the US Capitol on January 20, 2025 in Washington, DC. (Reuters)

Elon Musk's aides have taken control of the US Treasury Department's payments system -- which manages trillions of dollars of transactions each year -- sparking alarm among critics.

Musk, the world's richest person, is leading President Donald Trump's federal cost-cutting efforts under the so-called "Department of Government Efficiency" (DOGE).

"The corruption and waste is being rooted out in real-time," Musk posted Sunday on X, the platform he owns.

Later, replying to a post outlining alleged payments to Lutheran charities, Musk said DOGE was "rapidly shutting down these illegal payments."

The Treasury's closely guarded payments system handles the money flow of the US government, including $6 trillion annually for Social Security, Medicare, federal salaries, and other critical payments.

Musk's control of the payments system was approved by incoming Treasury Secretary Scott Bessent and was made possible when a career official was put on administrative leave on Friday after refusing to hand over access, The Washington Post first reported.

The official subsequently retired from the department, a source close to the matter told AFP.

Trump on Sunday praised Musk as "a big cost-cutter."

"Sometimes we won't agree with it and we'll not go where he wants to go. But I think he's doing a great job," he added.

News outlet Wired was first to report that Musk has placed young surrogates working for DOGE into key government positions, with his team gaining unprecedented access to the payment systems typically restricted to career employees.

The staff, reportedly aged between 19 and 24, were also placed at the federal Office of Personnel Management, the HR department for public workers that sent out an email last week offering most employees a chance to leave the government on immediate notice with about nine months' pay.

Democratic lawmakers have expressed deep concerns about political operators having access to the US government's money flow, pointing to possible systemic risks to the economy.

Elizabeth Warren, the top Democrat on the Senate Banking Committee, blasted the move in a letter to Bessent as "extraordinarily dangerous."

"I am alarmed that as one of your first acts as secretary, you appear to have handed over a highly sensitive system responsible for millions of Americans' private data -- and a key function of government -- to an unelected billionaire and an unknown number of his unqualified flunkies," wrote Warren.

She also said that sidelining experienced staff in this crucial corner of government "puts the country at greater risk of defaulting on our debt, which could trigger a global financial crisis."

On X, Musk predicted "Excitement guaranteed" in response to a post that said DOGE would uncover an "unprecedented amount of fraud and corruption in numerous government departments."



US Judge Orders Trump Administration to Reinstate Thousands of Fired Workers

US President Donald Trump speaks during his meeting with NATO Secretary General Mark Rutte, in the Oval Office of the White House in Washington, DC, USA, 13 March 2025. (EPA)
US President Donald Trump speaks during his meeting with NATO Secretary General Mark Rutte, in the Oval Office of the White House in Washington, DC, USA, 13 March 2025. (EPA)
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US Judge Orders Trump Administration to Reinstate Thousands of Fired Workers

US President Donald Trump speaks during his meeting with NATO Secretary General Mark Rutte, in the Oval Office of the White House in Washington, DC, USA, 13 March 2025. (EPA)
US President Donald Trump speaks during his meeting with NATO Secretary General Mark Rutte, in the Oval Office of the White House in Washington, DC, USA, 13 March 2025. (EPA)

A California federal judge on Thursday ordered six US agencies to reinstate thousands of recently-hired employees who lost their jobs as part of President Donald Trump's purge of the federal workforce.

The ruling by US District Judge William Alsup during a hearing in San Francisco is the most significant blow yet to the effort by Trump and top adviser Elon Musk to drastically shrink the federal bureaucracy. Government agencies are facing a Thursday deadline to submit plans for a second wave of mass layoffs and to slash their budgets.

Alsup's ruling applies to probationary employees at the US Department of Defense, Department of Veterans Affairs, Department of Agriculture, Department of Energy, Department of Interior and the Treasury Department.

The judge said the US Office of Personnel Management, the human resources department for federal agencies, had improperly ordered those agencies to fire workers en masse even though it lacked the power to do so.

“It is a sad day when our government would fire some good employee and say it was based on performance when they know good and well that’s a lie,” said Alsup, an appointee of Democratic President Bill Clinton.

Probationary workers typically have less than one year of service in their current roles, though some are longtime federal employees. They have fewer job protections than other government workers but in general can only be fired for performance issues.

Alsup ordered the agencies to reinstate workers who were fired over the last few weeks, pending the outcome of a lawsuit by unions, nonprofit groups, and the state of Washington.

He did not order the 16 other agencies named in the lawsuit to reinstate workers, but said he would promptly issue a written decision that could expand on Thursday's ruling.

A Veterans Affairs spokesperson declined to comment. A Department of Interior spokeswoman said the agency does not comment on litigation over personnel matters.

The White House and the other agencies did not immediately respond to requests for comment.

The plaintiffs include the American Federation of Government Employees, which represents 800,000 federal workers. The union's president, Everett Kelley, in a statement said the decision was an important victory against "an administration hellbent on crippling federal agencies and their work on behalf of the American public."

25,000 WORKERS

Alsup last month had temporarily blocked OPM from ordering agencies to fire probationary employees, but declined at the time to require that fired workers get their jobs back. The plaintiffs subsequently amended their lawsuit to include the agencies that fired probationary workers.

About 25,000 workers across the US government had been fired as of March 5, according to a Reuters tally, and another 75,000 have taken a buyout. The Trump administration has not released statistics on the firings, and it was not immediately clear how many employees could be affected by Thursday's decision.

In the lawsuit before Alsup, the plaintiffs claim the mass firings were unlawful because they were ordered by OPM rather than left to the discretion of individual agencies.

OPM has maintained that it merely asked agencies in a January 20 memo to identify probationary workers and decide which ones were not "mission critical" and could be fired, and did not order them to terminate anyone.

The agency on March 4 revised that memo, adding that it was not directing agencies to take any specific actions with respect to probationary employees.

OPM has pointed to the updated memo and to press releases by agencies as proof that it had no control over agencies' decisions.

Alsup on Thursday told the US Department of Justice lawyer representing OPM, Kelsey Helland, that he did not believe that was true, and scolded the government for not presenting OPM's acting director, Charles Ezell, to testify at the hearing.

“I’ve been practicing or serving in this court for over 50 years and I know how we get at the truth, and you’re not helping me get at the truth. You’re giving me press releases, sham documents,” Alsup said.

Helland said it was common for presidential administrations to prevent high-ranking agency officials from testifying in court, and that the information provided by OPM in court filings was enough to prove that it never ordered agencies to terminate workers.

Along with the lawsuit in California, several other challenges to the mass firings have been filed, including cases by 20 Democrat-led states and a proposed class action by a group of fired workers.

The Merit Systems Protection Board, which reviews federal employees' appeals when they are fired, earlier this month ordered the Agriculture Department to reinstate nearly 6,000 probationary workers at least temporarily.