This May Change Quickly

On Saturday, Manhattan-based District Judge Paul Engelmayer issued a sweeping emergency injunction essentially removing the authority of Secretary of Treasury Scott Bessett over the Treasury Department. The injunction blocks the Secretary and any political appointees from accessing records within the Treasury Department. The injunction also blocks any ‘special appointee’ of President Trump from having access records within the Treasury Department and demands that all information previously extracted be destroyed. What the judge is essentially saying is that the Treasury Secretary is not allow to look at the Treasury records nor is he or the President allowed to hire anyone to look at those records. This is an amazing combination of chutzpah, arrogance, ignorance of the U.S. Constitution, and stupid. I expect the ruling to be overturned quickly.

On Saturday, Legal Insurrection reported:

It was an unusual procedural context. I’ve reviewed the court’s electronic docket, and it appears to have been ex parte. There’s no indication of notice to the government and opportunity to be heard before the Judge ruled. The procedure was a Proposed Order To Show Cause including a Temporary Restraining Order. It’s the type of procedure used in only the most extreme emergencies (the OSC is not unusual, but including an ex parte TRO is unusual).

What was the emergency that couldn’t wait until the next day for the government to have a chance to be heard?

It was a Friday night move to deny access that, by the papers submitted, had been going on for over two weeks. The 60 page Complaint, and 40 Page Memorandum (plus a short Affirmation) obviously took a long time to prepare, arguing against an emergency so dire and time sensitive on a Friday night the court couldn’t even wait until the next morning for the government to be heard. It also reeks of judge shopping, because plaintiffs would have known who was the emergency duty judge so by going in on a Friday night they evaded the normal random assignment system for this purpose.

Whatever the ultimate merits, depriving the Secretary of Treasury of the ability to run the Department of Treasury as he deems proper is not something that should have been decided this way, even temporarily. I understand that litigants play these games, but it’s a bad look that damages faith in the judiciary when a court allows it.

The short version of the complaint and claims is that Secretary Bessent violated various procedural requirements and that there is a threat that sensitive private information could be exposed. Considering that the Chinese government thoroughly hacked the Treasury computer systems under Biden, it’s odd that the mere possibility that DOGE might mishandle the information required a Friday night court intervention. I think there are serious ‘standing’ issues with the states bringing the case as well as the harm being speculative.

The article also notes:

I can’t really assess the underlying merits on such short notice, other than it seems like what it is, a political objection in search of a legal theory. The Executive Branch gets to run the Executive Branch, and this seems like an overstep by a different branch of government.

This seems to be a repeat of 2017, where the Resistance had good luck with District Court Judges, less luck with Appeals Court Judges, and very little luck with Supreme Court Justices. But that’s besides the point, this is all about slowing down the Trump agenda, and wasting months or years before a final resolution is reached. Democrats don’t have to win in the end to achieve Democrats’ goals.

It is telling that there was less fuss when the Chinese hacked into the system.

Protecting The Pocketbook Of The American Taxpayer

On Saturday, Zero Hedge posted an article about Elon Musk’s efforts to cut government spending. David A. Lebryk, the acting Secretary of the Treasury has retired after refusing Elon Musk access to Treasury Department records.

The article reports:

David A. Lebryk, a decades-long Treasury official who President Trump named as acting secretary upon taking office last week, announced his retirement in a Friday email to colleagues. According to the report, Lebryk had a dispute with Musk surrogates over access to the US government’s payment system used to disburse trillions of dollars every year.

[Imagine Musk and team uncover decades of improper payments and shady dealings?]

The Musk surrogates are affiliated with the Department of Government Efficiency (DOGE), and have been asking since the election for access to the system, according to the report. The requests were reiterated after Trump’s inauguration.

After Trump pick Scott Bessent was confirmed as Treasury Secretary on Monday, Lebryk ceased to be acting agency head.

The payment system in question is run by a handful of career officials within the Bureau of the Fiscal Service – which controls the flow of more than $6 trillion annually to households, businesses, and other entities nationwide – and includes Social Security, Medicare, federal salaries, payments to government contractors, tax refunds, grant recipients, and more.

…Unfortunately for the career bureaucrats, Trump signed an executive order instructing all agencies to ensure DOGE has “full and prompt access to all unclassified agency records, software systems, and IT systems,” which appear to include the Treasury payment systems.

Musk has previously slammed rising national debt as an existential threat to the country, while DOGE has already made progress in rooting out bullshit programs established by Democrat administrations.

On Saturday, The New York Times reported:

Treasury Secretary Scott Bessent gave representatives of the so-called Department of Government Efficiency full access to the federal payment system late on Friday, according to three people familiar with the change, handing Elon Musk and the team he is leading a powerful tool to monitor and potentially limit government spending.

The new authority follows a standoff this week with a top Treasury official who had resisted allowing Mr. Musk’s lieutenants into the department’s payment system, which sends out money on behalf of the entire federal government. The official, a career civil servant named David Lebryk, was put on leave and then suddenly retired on Friday after the dispute, according to people familiar with his exit.

This is what America voted for.