A federal judge on Friday declined to block Elon Musk's government cost-cutting department from accessing the U.S. Department of Labor's systems, an initial setback for the government employee unions resisting his efforts to shrink the federal bureaucracy.

A New York federal judge issued an order blocking DOGE's access to treasury payments after 19 Democratic state attorneys general sued the Trump administration.

The lawsuit alleged the breach of sensitive Treasury Department data "poses huge cybersecurity risks" and violates multiple federal laws.