Skip to main content

Market Overview

Elon Musk 'Occupies A Continuing Position' And 'Exercises Significant Authority' In Trump Administration, Judge Says: Allows Lawsuit To Proceed

Share:
Elon Musk 'Occupies A Continuing Position' And 'Exercises Significant Authority' In Trump Administration, Judge Says: Allows Lawsuit To Proceed

Elon Musk's influence on the Trump administration will encounter further legal scrutiny after a federal judge allowed a constitutional challenge against him to move forward.

The case, brought by 14 states, focuses on Musk's leadership of the Department of Government Efficiency (DOGE), which has administered major changes to the federal workforce and digital infrastructure.

What Happened: On Tuesday, U.S. District Judge Tanya Chutkan rejected the federal government's attempt to dismiss the lawsuit against Musk and DOGE, according to CNBC.

The plaintiffs, led by New Mexico, claim that Musk is exercising federal authority without a proper appointment and that DOGE has no legislative foundation.

Attorneys for the White House tried to portray Musk as occupying a temporary and advisory role. The judge disagreed, noting that Musk's responsibilities "extend throughout the executive branch without any known limits," despite attempts to "minimize Musk's role, framing him as a mere advisor without any formal authority."

See Also: Trump’s Tariffs Won’t Bring Back Manufacturing Jobs, Says Wells Fargo, Citing Labor Shortages And Rising Costs

Why It Matters: Judge Chutkan wrote that Musk "occupies a continuing position" and "exercises significant authority," even though he was not confirmed by the Senate or appointed via formal procedures The court also found that the states' claims about DOGE obtaining "unauthorized access" to "private and proprietary information" were "sufficient to allege an injury."

Although Trump was initially named in the lawsuit, Chutkan dismissed him from the case. She clarified that the judiciary "may not enjoin the President in the performance of his official duties," and stressed that the president has "highly discretionary" power to nominate officials under the Appointments Clause of the Constitution.

This ruling comes just as Musk publicly expressed disappointment with President Donald Trump's "big, beautiful bill", claiming it "undermines the work" DOGE has been doing.

Read Next:

Photo courtesy: Joshua Sukoff / Shutterstock.com

 

Related Articles

View Comments and Join the Discussion!

Posted-In: Doge Donald Trump Elon MuskNews Politics

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com