Department of Government Efficiency from accessing Treasury Department records that contain sensitive personal data such as Social Security and bank account numbers for millions of Americans.
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The case, filed in federal court in New York City, alleges the Trump administration allowed Musk's team access to the Treasury Department's central payment system in violation of federal law.
The payment system handles tax refunds, Social Security benefits, veterans' benefits and much more, sending out trillions of dollars every year while containing an expansive network of Americans' personal and financial data.
The White House did not immediately respond to a request for comment.
Musk's Department of Government Efficiency, also known as DOGE, was created to discover and eliminate what the Trump administration has deemed to be wasteful government spending. DOGE's access to Treasury records, as well as its inspection of various government agencies, has ignited widespread concern among critics over the increasing power of Musk, while supporters have cheered at the idea of reining in bloated government finances.
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