Controversial Data Sharing Deemed Illegal by Federal Judge
A federal judge has delivered a scathing indictment against the Office of Personnel Management (OPM), ruling that the agency illegally shared sensitive government data with the Elon Musk-led Department of Government Efficiency (DOGE). The decision highlights significant breaches of privacy law and raises serious questions about data security within federal operations.
Violation of the Privacy Act of 1974
In a detailed 39-page ruling issued on Tuesday, Judge Denise Cote found that OPM not only violated the Privacy Act of 1974—a critical post-Watergate statute designed to protect personal records and mandate stringent safeguarding protocols—but also disregarded its own established cybersecurity practices. Critically, OPM failed to offer any credible justification for granting DOGE access to the personally identifiable information (PII) of millions of federal employees, applicants, and retirees.
Judge Cote’s ruling noted, “The defendants barely defend its legality, relying instead on what has happened since to argue that the case is moot and that prospective relief is unnecessary.” This statement underscores the government’s weak defense in the face of such a significant data breach.
The Genesis and Controversies of DOGE
Elon Musk established DOGE early in President Donald Trump’s second term, with the stated mission of eradicating waste, fraud, and abuse across federal agencies. While DOGE claims impressive savings of $215 billion from canceled contracts and a reduction of approximately 300,000 government positions, these sweeping cuts have drawn criticism. Former federal officials, including ex-IRS acting Commissioner Douglas O’Donnell, have voiced concerns that such drastic measures could severely impede the government’s long-term ability to modernize and enhance efficiency through technological advancements.
Unjustified Access to Sensitive Information
The Department of Justice (DOJ), representing OPM, previously argued in court filings that DOGE agents required access to highly sensitive data—including employee records, background checks, medical files, and banking information—as part of their workforce modernization initiatives. However, Judge Cote pointed out that previous government modernization efforts have never necessitated such extensive data access. Furthermore, the administration failed to establish a clear link between the requested data access and the actual responsibilities of DOGE agents.
The government’s attempt to dismiss the lawsuit as moot, arguing that DOGE is no longer a centralized entity, was also rejected by Judge Cote. She confirmed that while DOGE agents have had access to OPM’s sensitive data since September 2025, at least one former agent is no longer employed by OPM, leaving the data’s fate uncertain. A final remedy for the case has yet to be offered, and both OPM and DOJ declined to comment on Fortune’s inquiries.
Widespread Privacy and Cybersecurity Concerns
The decision comes amidst ongoing and widespread concerns from policy experts and federal workers regarding the privacy implications of DOGE’s data access. A coalition of unions, including the AFL-CIO, initiated a lawsuit against DOGE and the Department of Labor in February 2025, specifically challenging the advisory group’s access to private information.
Musk had publicly defended the expanded access, asserting that it was crucial for reconciling disparate government databases to combat fraud. “These databases don’t talk to each other,” Musk explained in a Fox News interview last February. “And that’s really the source of, that’s the biggest vulnerability for fraud, is the fact that these databases don’t talk to each other. So we need to reconcile the databases. It’s a, frankly, painful homework, but it has to be done, and will greatly improve the efficiency of the government systems.”
The Perils of Centralized Data
Despite Musk’s rationale, policy experts have consistently warned that DOGE’s access to vast government data poses significant cybersecurity and privacy risks. These include the potential for private-sector engineers without proper clearances to store sensitive information on personal devices, and the inherent increased vulnerability of a centralized database to sophisticated cyberattacks.
Elizabeth Laird, director of equity in civic technology at the Center for Democracy and Technology, a technology policy nonprofit, articulated these concerns to Fortune last year: “Being able to amass all of that information will give the federal government unprecedented power and control to do with that information a number of things that we just haven’t experienced as a country before.”
Laird further emphasized that even if the data dissemination were legally permissible, it would still represent a substantial threat to information security. “Something can be private, and something can be secure, and it can be legal,” she added. “And it can still be a bad idea.”
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