A federal court has ruled in favor of the Trump administration in a dispute with New York Attorney General Letitia James over the Treasury Department’s spending review.

Judge Jeannette Vargas lifted an injunction, allowing Department of Government Efficiency (DOGE) staff to proceed with auditing Treasury payments, which the administration claims are bloated with excessive spending. The court acknowledged that the DOGE team had received appropriate training to handle sensitive taxpayer data, dismissing the need for court oversight when adding new team members. This ruling enables DOGE to continue scrutinizing payments, including those to agencies like USAID. James, currently under criminal investigation, criticized the inquiry as a political overreach threatening key social programs. Meanwhile, she faces pressure over allegations of mortgage fraud and is fundraising for her 2026 reelection, with ticket prices up to $18,000. The case raises broader questions about executive power, fiscal oversight, and political accountability in government operations.