
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
STATE OF NEW YORK; STATE OF ARIZONA, STATE OF CALIFORNIA, STATE OF COLORADO, STATE OF CONNECTICUT, STATE OF DELAWARE, STATE OF HAWAII, STATE OF ILLINOIS, STATE OF MAINE, STATE OF MARYLAND, COMMONWEALTH OF MASSACHUSETTS, STATE OF MINNESOTA, STATE OF NEVADA, STATE OF NEW JERSEY, STATE OF NORTH CAROLINA, STATE OF OREGON, STATE OF RHODE ISLAND, STATE OF VERMONT, and STATE OF WISCONSIN,
Plaintiffs,
-v-
DONALD J. TRUMP, IN HIS OFFICIAL CAPACITY AS PRESIDENT OF THE UNITED STATES; U.S. DEPARTMENT OF THE TREASURY; and SCOTT BESSENT, IN HIS OFFICIAL CAPACITY AS SECRETARY OF U.S. DEPARTMENT OF THE TREASURY,
Defendants.
25 Civ. 1144 (JAV)
ORDER
PAUL A. ENGELMAYER, District Judge:
This Court, sitting in its Part I capacity, this evening received an application for a temporary restraining order filed by the Attorneys General of the 19 States identified as plaintiffs above. The States’ lawsuit challenges a new policy by the United States Department of the Treasury, at the direction of the President and the Secretary of the Treasury, which, as alleged, expands access to the payment systems of the Bureau of Fiscal Services (BFS) to political appointees and “special government employees.” The States contend that this policy, inter alia, violates the Administrative Procedure Act (“APA”), 5 U.S.C. §§ 551 et seq., in multiple respects; exceeds the statutory authority of the Department of the Treasury; violates the separation of powers doctrine; and violates the Take Care Clause of the United States Constitution. The States seek declaratory and injunctive relief. Later this evening, upon the States’ successful filing of their submissions, this matter was assigned on a permanent basis to the Hon. Jeannette A. Vargas, United States District Judge.
The Court has reviewed the affirmation of Colleen K. Faherty, dated February 7, 2025, in support of the States’ motion for a temporary restraining order, the States’ memorandum of law in support of that motion, the States’ motion for a temporary restraining order, dated February 7, 2025, and the Complaint. The Court’s firm assessment is that, for the reasons stated by the States, they will face irreparable harm in the absence of injunctive relief. See Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 20 (2008). That is both because of the risk that the new policy presents of the disclosure of sensitive and confidential information and the heightened risk that the systems in question will be more vulnerable than before to hacking. The Court’s further assessment is that, again for the reasons given by the States, the States have shown a likelihood of success on the merits of their claims, with the States’ statutory claims presenting as particularly strong. The Court’s further assessment is that the balance of the equities, for the reasons stated by the States, favors the entry of emergency relief.
The Court accordingly:
ORDERS that the defendants show cause before the Hon. Jeannette A. Vargas, at Courtroom 14C, United States Courthouse, 500 Pearl Street, New York, New York, at 2 p.m. on Friday, February 14, 2025, why an order should not be issued pursuant to Rule 65 of the Federal Rules of Civil Procedure preliminarily enjoining the defendants during the pendency of this action from granting to political appointees, special government employees, and any government employee detailed from an agency outside the Treasury Department access to Treasury Department payment systems or any other data maintained by the Treasury Department containing personally identifiable information; and further
ORDERS that, sufficient reason having been shown therefor, pending the hearing of the States’ application for a preliminary injunction, pursuant to Rule 65 of the Federal Rules of Civil Procedure, the defendants are (i) restrained from granting access to any Treasury Department payment record, payment systems, or any other data systems maintained by the Treasury Department containing personally identifiable information and/or confidential financial information of payees, other than to civil servants with a need for access to perform their job duties within the Bureau of Fiscal Services who have passed all background checks and security clearances and taken all information security training called for in federal statutes and Treasury Department regulations; (ii) restrained from granting access to all political appointees, special government employees, and government employees detailed from an agency outside the Treasury Department, to any Treasury Department payment record, payment systems, or any other data systems maintained by the Treasury Department containing personally identifiable information and/or confidential financial information of payees; and (iii) ordered to direct any person prohibited above from having access to such information, records and systems but who has had access to such information, records, and systems since January 20, 2025, to immediately destroy any and all copies of material downloaded from the Treasury Department’s records and systems, if any; and further
ORDERS that any opposition submission by defendants be filed by 5 p.m. on Tuesday, February 11, 2025; and that any reply by the States be filed by 5 p.m. on Thursday, February 13, 2025; and further
ORDERS that personal service of a copy of this order and the States’ above-described affidavit, memorandum of law, and Complaint, be filed upon the defendants or their counsel on or before February 8, 2025, by 12 noon; and that the States forthwith serve these materials by email on Government counsel Bradley Humphreys and Jeffrey Oestericher, whom the Court understands have independently been emailed the States’ filings; and further
ORDERS that plaintiffs post security in the amount of $10,000 prior to Friday, February 14, 2025, at 2 p.m.
SO ORDERED.
PAUL A. ENGELMAYER
United States District Judge, sitting in Part I
Dated: February 8, 2025
New York, New York
*****************************
NY AG delivers MASSIVE BLOW to Trump in LATE NIGHT ORDER
by Michael Popok
MeidasTouch
Feb 8, 2025
Michael Popok reports on a win by NY AG Letitia James after a federal judge in Manhattan temporarily blocked Trump and Elon Musk’s associates from accessing the U.S. Treasury Department’s payment system as a result of a multi-state legal challenge she led.
Transcript
got breaking news a New York federal
judge on an emergency basis has blocked
by issuing a temporary restraining order
Elon Musk and others from rumaging
around the treasury Department servers
looking for our medical information our
most Private Financial information in
fact the judge has ordered that anyone
including Elon Musk the quote world's
richest man anyone who's already
obtained such information over the last
week or two has to destroy it until
there's a subsequent hearing this was
led by Leticia James the New York
attorney general who already took down
Donald Trump once for over $450 million
in a civil fraud case she's back and
she's joined with 18 other Attorneys
General to bring Justice and to stop
Donald Trump and Elon Musk dead in their
tracks I'm Michael popok you're on the
mest touch Network in legal AF let's
dive into the New Order on an emergency
basis by judge Paul Meer of the southern
district of New York which means
Manhattan on an emergency application
filed by 19 different states led by
Attorneys General uh attorney general
Leticia
James they argued that all of the access
given to Elon Musk as special
governmental employees by the treasury
Department and Trump violated the
violate the administrative procedures
act and violate the take care Clause of
the United States Constitution and
they're seeking temporary relief
because of how fast these things have
already been moving the judge was
concerned that before they could even
have a full-blown hearing on the
temporary restraining order which he has
assigned already to judge Janette Vargas
um on to take place on the 14th of
February on Friday he needed to put an
administrative temporary restraining
order in place now because of the nature
of the uh harm that's being presented
here and the likelihood of success on
the merits so here is the actual order
the court on this emergency application
orders that the defendants show cause
and the defendants here of course are
the Donald Trump in His official
capacity as the President of the United
States Scott bassent uh for the treasury
Department and the treasury Department
so all of those defendants have to
appear before judge Vargas on Friday to
show cause why a preliminary injunction
that's one step up from a temporary
restraining order should not be issued
so it's on they have the burden to show
why it shouldn't be issued um during the
pendency of this action concerning
political appointees special government
employees employees and any government
employee detailed from an agency outside
the treasury Department why they should
not be stopped from
accessing the treasury Department
payment systems or any other data
maintained by the treasury Department
containing personal identifiable
information the judge also ordered that
there has been sufficient cause being
shown that pending the the hearing of
the state's application for a
preliminary injunction on Friday that
the defendants Trump musk bent are
restrained from granting to any Treasury
Department payment record they're
restrained from granting access to any
Treasury Department payment record
payment system or any other Data Systems
maintained by the treasury Department
containing personally identifiable
information and or confidential
financial information of pay payes other
than to civil servants with a need for
access to perform their job within the
Bureau of fiscal Services who have
passed background checks and security
clearances and taken all information
security trading uh called for in
federal statutes and Treasury Department
regulations that means not you Elon Musk
they are restrained from granting access
to all political appointees special
government employees and government
employees detailed from an agency
outside the treasury Department that's
Doge that's musk um giving them access
to any payment record payment system or
any other data maintained by the
treasury Department including personally
identifiable information and
confidential financial information of
taxpayers and they are ordered to direct
any person prohibited from above from
having access to that information but
who has already accessed that
information records or systems since
January 20th of 2025 to immediately
destroy any and all copies of the
material downloaded from the from the
treasury Department's records and
systems and then they got a then he said
sets up a briefing schedule to get this
whole thing set up in front of Judge
Vargas for Friday and they'll have to
post a bond U the states will post the
bond for $10,000 to pay for some of this
stuff so that's a um in a two cases now
two uh injunctions that are now in place
on the Doge access through the treasury
Department of
recordkeeping um I'm going to show you
now a clip from attorney general uh
Laticia James so you know how serious
this all is is and here here's her post
now
[Leticia James]
In the past week Elon Musk and his so-called Department of government efficiency have accessed the personal private information of tens of millions of Americans and sensitive data about public and private entities Social Security numbers addresses tax returns and more this unelected group led by the world's richest man is not authorized to have this information and they explicitly sought this unauthorized access to illegally blocked payments that millions of Americans rely on payments for Health Care Child Care and other essential programs today Democratic Attorneys General are taking action to keep Americans personal data secure to keep sensitive information about Americans private and to hold our constitution we have filed a lawsuit against the Trump Administration for giving unauthorized individuals access to these immensely sensitive records in violation of the law president Trump does not have the power to give our private information away to whomever he wants and he does not have the power to cut federal spending that Congress approved much less to do so by giving the richest man in the world the keys to all Americans most sensitive information as Democratic Attorneys General we are suing to stop this unprecedented and unauthorized attack and to protect your personal information as I've said before no one is above the law and I will not hesitate to uphold the rule of law and protect New Yorkers. Thank you.
[Michael Popok] welcome back so um she takes
it one step further she said this
morning we want a court order blocking
Elon Musk the world's richest man from
accessing America's private data musk
and his doge employees must destroy all
records they've obtained I've said it
before I'll say it again no one is above
the law now Leticia James that's the one
that there's people on the Maga side who
literally said out loud during the
campaign that they wanted to put her
quote fat ass in jail she's back as I've
said there are 22 at least Attorneys
General around the country who are
Democrats who are going to be going
after Donald Trump twice a day three
times a day every day twice on Sunday
until his administration is over and
they have an over 80% winning percentage
from the first Trump Administration and
right now they are collectively in these
suits they are 9 and0 almost 10 and0 in
these cases that Donald Trump hasn't won
one of these Federal hearings nine
different injunctions two preliminary
injunctions already issued on various
things now there's two competing court
cases about Doge access of these servers
by the treasury Department you're in my
personal classified information
financial information healthc care
information and the rest think about all
the things you've had to submit in order
to get your benefits from the uh from
the government it's all there um there's
a case in front of Judge Kolar Catelli
who's in the district of Colombia
Federal bench she's forced the
Department of Justice and the government
to enter into a consent temporary
restraining order that covers uh many of
the same issues here but this new
temporary restraining order by judge
Angel Meer is even broader it's even
broader and they can exist parallel to
each other there was with some overlap
this is what happens when you file
multiple cases and multiple courts you
want to do that because in case you get
a bad ruling at least you've got three
or four different judges all looking at
the same thing right now the Attorneys
General the civil liberty groups the the
naacp's and ACLU of the world they don't
have to worry about conflicting
decisions because they're just winning
it's just winning they're not tired of
winning but it's all they're doing is
winning got 11 separate court
appearances they're 11 and0 Donald Trump
has a one one and the Trump Department
of Justice is in shreds and terms of its
credibility in front of these
judges so so that's where we are right
now in New York but this is a
effectively a nationwide bang it stops
the Trump Administration from doing this
now Steve bassent the treasury secretary
I saw his comments on uh on Bloomberg
recently where he he just said no no no
no there's there's no bad stuff going on
here with me giving complete and total
access to a stranger who doesn't have a
national security clearance or hasn't
been confirmed by the Senate to go
rooting around in your most personal
information no no no he's going to do
things about efficiency he's going to
make this work more efficient does
anybody believe this does anybody
believe Scott Scott bent sorry our
treasury secretary about about what he
thinks the um that Elon Musk is doing
there rooting around in our most private
information here's the quote from
bassent that almost I almost like fell
out of my chair when I read it um he
said must Doge isn't altering treasury
data he said it's an operational review
it's not an ideological review he told
Bloomberg television the ability to
change the system sits over at the
Federal Reserve we don't we don't even
run the system he said he said these are
highly trained professionals do the Doge
musk people this is not some roving ban
running around doing things this is
methodical and it's going to yield big
savings um so I mean not according to
this judge it's not and you're not going
to allow you're not allowed to do it
right now especially if it violates the
administrative procedures act because
the treasury Department is changing the
way that it it secures data without
telling the American people that they've
done that so that's inappropriate and
it's a improper delegation and savings
clause or takings Clause under the uh
under the um uh take care Clause sorry
under the US
Constitution we'll get to the bottom of
it but only in federal courts and right
here on Midas Touch and on legal AF
continue to follow all of these stories
we got 33 34 lawsuits that are out there
right this is they're already 0 and 11
at the Trump Administration they haven't
lost they haven't won yet because
they're on the wrong side of the law on
the wrong side of history in each one of
these cases Elon mus shut down and
congratulations to uh New York attorney
general Laticia James she's going to be
out there leading the way among these 22
I mean you know they're all kind of you
know their own Attorneys General but
look for her over and over and over
again beating the Trump Administration
with both ends of the stick and I I'm
here for it and I know you are here too
so until my next reporting I'm Michael
popuk in collaboration with the midest
touch Network we just launched the legal
AF YouTube channel help us build this
pro-democracy channel where I'll be
curating the top stories the
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[Music]