In a major win for the Trump administration, a federal judge has cleared the way for a broad investigation into Treasury Department spending, rejecting efforts by New York Attorney General Letitia James and 17 other Democratic attorneys general to block the audit.
The ruling, issued Tuesday by U.S. District Judge Jeannette Vargas of the Southern District of New York, lifts the last legal barrier preventing auditors from the Department of Government Efficiency (DOGE) from examining Treasury payment systems, which the administration claims are riddled with wasteful expenditures.
Legal Battle Ends With a Shift
James and her counterparts filed the lawsuit in an effort to stop DOGE’s sweeping review, arguing the agency was operating beyond legal bounds and lacked adequate safeguards for handling sensitive taxpayer data.
Judge Vargas—appointed by President Biden—had initially been sympathetic to the Democratic coalition’s concerns about vague access protocols. However, her stance shifted after the Trump administration presented evidence that DOGE team members had completed extensive training to meet federal data-handling standards.
Key Ruling Highlights
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Vargas ruled that new DOGE employees can now be granted access to Treasury systems without additional court approval, streamlining future audits.
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She emphasized the court should not serve as a “de facto human resources officer” for Treasury.
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The ruling removes the requirement for individual court orders for staff additions, potentially speeding up DOGE’s oversight efforts.
Investigation Team Cleared to Proceed
DOGE’s lead investigator Tom Krause, along with Linda Whitridge, Samuel Corcos, and Todd Newman, submitted detailed documentation proving all required compliance training had been completed. This evidence proved critical in convincing the court to allow the investigation to move forward.
Letitia James Pushes Back
Letitia James, who is currently under federal criminal investigation herself, had previously condemned the DOGE audit as an “illegal power grab” and accused the Trump administration of using the audit to undermine federal social safety net programs like Social Security and Medicaid.
James framed her lawsuit as a defense of those programs, arguing that the Treasury probe could jeopardize their stability and funding.
What’s Next?
With legal obstacles removed, DOGE is expected to accelerate its review of federal spending, focusing on uncovering inefficiencies and mismanagement within the Treasury’s Bureau of the Fiscal Service. The ruling could also embolden the Trump administration to expand similar audits across other agencies as part of its broader cost-cutting strategy.
Summary of Key Developments:
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Judge Vargas ruled in favor of Trump’s Treasury audit team, overruling Democratic efforts to block it.
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The DOGE team, once criticized for lack of oversight, has now met all compliance requirements.
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Letitia James, a key opponent of the probe, faces her own legal scrutiny.
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The ruling removes bureaucratic hurdles, potentially setting a precedent for broader executive oversight of federal finances.
As scrutiny intensifies over government spending, this decision marks a pivotal moment in the Trump administration’s renewed push for austerity and accountability.
