Trump’s Social Security Chief Reverses Shutdown Decision/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Social Security Commissioner Leland Dudek backed off a threat to shut down the agency after a federal judge clarified her ruling limiting Elon Musk’s access to sensitive data. The court found the Social Security Administration had improperly shared personal records with Musk’s DOGE team. The ruling is a major legal setback for the Trump-backed government efficiency initiative.
Social Security Shutdown Reversal: Quick Looks
- SSA Commissioner Leland Dudek threatened shutdown over data ruling
- Judge ruled against unrestricted Musk access to sensitive SSA data
- Dudek walked back shutdown plans after clarification from court
- DOGE team, led by Elon Musk, was reviewing SSA records
- Judge: access must exclude names, SSNs, and personal identifiers
- Ruling highlighted extent of data DOGE had viewed
- Agency employees still allowed access to full records
- Trump appointed Dudek as part of government downsizing push
Trump’s Social Security Chief Reverses Shutdown Decision
Deep Look
Social Security Chief Walks Back Shutdown Threat After Court Rebuke Over Musk Data Access
WASHINGTON — Leland Dudek, the acting commissioner of the Social Security Administration (SSA) appointed by President Donald Trump, reversed a threat to shut down the agency on Friday following a federal judge’s clarification over a major privacy ruling.
The drama began when U.S. District Judge Ellen Lipton Hollander ordered the SSA to halt its unrestricted data sharing with Elon Musk’s Department of Government Efficiency (DOGE), a Trump-backed initiative aimed at rooting out fraud and reducing federal spending.
Musk-Led Access Sparks Privacy Clash
The judge’s Thursday ruling accused the SSA of violating privacy laws by giving Musk’s aides “unbridled access” to the personal records of millions of Americans. The data included sensitive details such as:
- Social Security numbers
- Medical and mental health records
- Bank account and tax information
- Employment history and marriage records
Musk’s DOGE team, with Dudek’s cooperation, had been reviewing the data to identify what they allege is widespread fraud in benefits claims — a top priority of the Trump administration.
But Hollander’s ruling made it clear: DOGE staff must only access redacted records, free of personally identifiable information (PII). Unredacted data, the judge ruled, remains accessible only to SSA employees.
Shutdown Threat Meets Legal Pushback
In response to the ruling, Dudek initially told major outlets including Bloomberg and The Washington Post that the SSA would have to suspend nearly all operations because it couldn’t distinguish between DOGE and SSA staff access levels — a statement interpreted as a threat to “shut down” the agency.
That assertion was swiftly and sharply dismissed by Judge Hollander.
“Such assertions about the scope of the order are inaccurate,” she wrote Friday in a letter to government attorneys. She clarified that SSA staff could continue to access full records and that the order did not require suspending benefit payments.
“Any suggestion that the order may require the delay or suspension of benefit payments is incorrect,” the judge added.
Following the clarification, Dudek issued a statement backing away from his shutdown comments:
“Therefore, I am not shutting down the agency.”
Legal Setback for DOGE
The decision marks one of the most significant legal setbacks to date for DOGE, the Musk-led federal effort to slash waste and investigate government operations. While DOGE has already influenced numerous agencies — including overseeing massive layoffs — this court ruling sets new boundaries on how far its data access can go.
It also shines a spotlight on how extensively DOGE was embedded within the SSA’s operations — reviewing records filled with deeply personal information in a manner now deemed potentially unlawful.
Political Backdrop
Since his return to the White House, Trump has emphasized shrinking the federal government, and Musk has been central to that mission. Trump and Musk have both claimed that social security fraud is rampant and have defended DOGE’s access as a necessary step toward reform.
However, critics argue that granting non-government officials, even those advising the president, sweeping access to private citizen data is a clear overreach. Legal experts say the SSA’s cooperation with DOGE likely crossed a line protected by privacy statutes.
The controversy has already drawn attention from civil rights organizations and lawmakers concerned about data security and the political targeting of government agencies.
As of now, the SSA remains fully operational — but scrutiny over DOGE’s role and reach is only intensifying.
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