Judge Dismisses Letitia James' Lawsuit Against Treasury Over Trump-Era DOGE Access

A federal judge has dismissed a lawsuit led by New York Attorney General Letitia James that challenged the Trump administration's executive order establishing the Department of Government Efficiency (DOGE) and subsequent access granted to sensitive Treasury systems.

U.S. District Judge Jeannette Vargas, appointed by President Biden, ruled Wednesday that the claims related to DOGE-affiliated employees accessing Treasury information were moot because the Treasury's DOGE team has been disbanded and no such employees remain. Vargas also dismissed the states' claims regarding an automated payment-review system, stating that the plaintiffs had not alleged any specific federal payment was frozen or canceled.

The lawsuit, filed in February 2025 by James and a coalition of 18 other states, stemmed from a January 2025 executive order by then-President Trump. The order established DOGE teams within executive agencies to identify fraud, waste, and abuse, with a termination date set for July 4, 2026.

Treasury's decision to grant DOGE-affiliated employees access to Bureau of the Fiscal Service systems, which handle federal payments and sensitive financial data, prompted the legal challenge. The states argued that this access was unlawful and exceeded the administration's authority, potentially putting state financial information and federal payments at risk.

In February 2025, Vargas had granted the states a preliminary injunction to bar the Treasury's DOGE team from the payment systems. However, she later modified the order to allow access under specific conditions, including vetting, training, and reporting procedures.

Letitia James has been a prominent critic and legal adversary of Donald Trump, previously launching a civil fraud lawsuit against him and the Trump Organization in 2022. That case, which initially resulted in significant financial penalties, saw Trump's liability upheld on appeal, though the financial penalty was voided.