Musk’s Team Sought Treasury Access to Halt USAID Funding

Musk’s Team Sought Treasury Access to Halt USAID Funding \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Officials linked to Elon Musk’s Department of Government Efficiency (DOGE) attempted to gain access to the U.S. Treasury payment system to block funds from reaching the U.S. Agency for International Development (USAID), sources say. The move contradicts previous assurances that DOGE only had “read-only access” for auditing purposes. A federal judge has now restricted their access, as concerns grow over Musk and the Trump administration’s attempts to reshape federal spending.

Musk’s DOGE and USAID Funding Freeze: Quick Looks

• Treasury System Access Attempted: Musk’s team sought control over USAID payments despite claiming only to be auditing.
• Federal Judge Restricts Access: U.S. District Judge Colleen Kollar-Kotelly limited DOGE’s Treasury access to two individuals.
• USAID Targeted by Trump & Musk: Both claim the agency’s spending is wasteful, while supporters argue it’s crucial for U.S. interests.
• Treasury Official Resigned: Acting Deputy Secretary David Lebryk stepped down amid DOGE’s push for sensitive data access.
• Massive Funding Freeze: Trump halted USAID operations, shuttering billions of dollars in foreign aid projects.
• Musk’s Public Attacks: Musk has posted criticisms of USAID, calling it a “foreign aid industry not aligned with American interests.”

Deep Look

Musk’s Team Moves to Halt Foreign Aid Payments

Officials associated with Elon Musk’s Department of Government Efficiency (DOGE) attempted to gain access to the U.S. Treasury payment system in an effort to stop funds from flowing to the U.S. Agency for International Development (USAID), according to two sources familiar with the matter.

The attempted intervention raises new concerns about DOGE’s influence over federal funding, particularly given previous assurances that the department was merely conducting an audit of government transactions. In a letter to lawmakers earlier this week, DOGE officials stated that they had “read-only access” to the Treasury system, meant only for reviewing payments. However, insiders now say the department actively sought control to block aid disbursements—prompting swift legal action.

Judge Limits DOGE’s Treasury Access

On Thursday, U.S. District Judge Colleen Kollar-Kotelly ruled in favor of advocates and federal workers’ unions, restricting DOGE’s access to Treasury payment systems. Under the ruling, only two individuals—software executive Tom Krause and his former subordinate Marko Elez—are allowed limited read-only access.

The decision comes amid increasing alarm among civil servants and Democratic lawmakers, who accuse Musk and the Trump administration of deliberately withholding Congressionally-approved funds to advance political goals.

The Treasury Department’s Bureau of the Fiscal Service processes over 1.2 billion transactions annually, handling 90% of federal disbursements, including Social Security and Medicare payments. The potential for outside interference in such a critical system has further fueled concerns about DOGE’s growing power.

USAID: A Target of Trump & Musk’s Government Overhaul

USAID, a federal agency responsible for delivering humanitarian assistance worldwide, has been a frequent target of both President Donald Trump and Elon Musk. Trump has long criticized the agency as wasteful, while Musk has made unverified accusations against its operations on social media.

Trump ordered a funding freeze on USAID on his first day in office, stating that the “United States foreign aid industry” was “not aligned with American interests.” The freeze, which affects billions of dollars in aid across more than 100 countries, has already shuttered most U.S. assistance programs abroad.

Although the administration claims the freeze will last just 90 days, aid workers warn that the disruption could have lasting consequences. Many programs—including those addressing famine, disease prevention, and disaster relief—could take years and billions of dollars to rebuild.

Treasury Official Resigns Amid DOGE’s Push for Access

The growing tension over DOGE’s role in federal finances has also led to significant personnel changes. According to sources, David Lebryk, the acting deputy secretary of the Treasury, resigned after more than 30 years of service when DOGE officials—including Krause—requested access to sensitive payment data.

Krause, who is listed as the CEO of Cloud Software Group, works at the Treasury Department as a special government employee, a designation that allows him to bypass some of the stricter ethics and financial disclosure rules that apply to full-time federal workers. His subordinate, Elez, has since left his role at Treasury but was still included in the judge’s ruling.

Musk’s Public Attacks on USAID & Foreign Aid Spending

While the court ruling limits DOGE’s immediate power over Treasury operations, Musk has continued his campaign against USAID on social media.

“Spent the weekend feeding USAID into the wood chipper,” Musk tweeted earlier this week, referring to his team’s efforts to dismantle the agency’s funding.

Musk and his allies argue that USAID mismanages taxpayer money and that its foreign aid programs benefit global elites rather than everyday Americans. However, national security experts and bipartisan lawmakers counter that USAID plays a critical role in countering Russian and Chinese influence while providing crucial humanitarian assistance.

What Happens Next?

For now, the federal judge’s ruling restricts DOGE’s ability to interfere with Treasury payments, but the legal battle is far from over. With Trump and Musk committed to reshaping the federal government, USAID remains a primary target, and further attempts to withhold funding may arise.

Congressional Democrats and advocacy groups are expected to escalate their legal and political efforts to prevent what they see as an unconstitutional overreach of executive power. Meanwhile, federal employees and international aid organizations continue to assess the long-term damage caused by the funding freeze.

As the battle over government spending intensifies, the coming weeks could determine whether USAID—and other federally funded programs—can continue their operations or whether Musk’s vision for a radically downsized federal government will move forward.

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