A federal court has ruled in favor of the Trump administration, allowing four members of the Department of Government Efficiency (DOGE) to access sensitive Treasury Department payment systems.

U.S. District Judge Jeannette Vargas determined that the Trump administration had implemented sufficient vetting and training protocols for the DOGE staffers, lifting previous restrictions. This decision follows a lawsuit filed by 19 Democratic state attorneys general, led by New York Attorney General Letitia James, who had raised concerns about data privacy and potential misuse of personal information. The ruling permits DOGE staff access without the need for further court approval, provided they adhere to established security measures.

In a related development, the Trump administration has referred New York Attorney General Letitia James for potential federal prosecution over allegations of mortgage fraud. The referral, made by William Pulte of the Federal Housing Finance Agency, accuses James of misrepresenting financial information to obtain favorable loan terms. James has retained defense attorney Abbe Lowell, who has dismissed the allegations as politically motivated retaliation. The Justice Department is currently reviewing the claims, which could involve violations of federal fraud statutes.

Additionally, a provision in New York’s 2025 operations budget bill allows up to $10 million to be used for legal fees of current and former state employees, including instances not directly related to their official duties. While James is not mentioned by name, the bill applies to legal actions initiated by the federal government after January 1, 2025. Critics argue that this measure serves as a partisan shield for James, who faces DOJ scrutiny over alleged mortgage fraud