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A federal judge has sided with the Trump administration, resolving a dispute with New York Attorney General Letitia James about the expansive scope of cost-cutters to examine U.S. Treasury payments that they claim are laden with wasteful spending.
James was among 18 Democratic attorneys general who filed suit to block an investigation by the U.S. Department of Government Efficiency into the Treasury payment system. The coterie was dealt a severe setback on Tuesday when U.S. District Judge Jeannette Vargas, for the Southern District of New York, lifted the last legal hurdle for the four DOGE employees tasked with carrying out the investigation.
An earlier order was also relaxed after the Trump administration showed evidence that it appropriately trained the four employees to safeguard sensitive taxpayer information during the probe. In April, Vargas granted access to one DOGE employee after they completed a similar training program.
Prior to those decisions, the judge, a Biden appointee, was mostly siding with the state prosecutors who argued that Treasury’s processes for granting access were poorly established, a likely violation of law.
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