As Musk, Trump administration target CFPB, Democrats defend consumer watchdog’s impact

As Musk, Trump administration target CFPB, Democrats defend consumer watchdog’s impact
As Musk, Trump administration target CFPB, Democrats defend consumer watchdog’s impact
Saul Loeb/AFP via Getty Images

(WASHINGTON) — The Consumer Financial Protection Bureau, an independent agency formed in the wake of the 2008 financial crisis to safeguard Americans against unfair business practices, is the newest target of Elon Musk and the Trump administration.

The agency is at a virtual standstill after Musk’s Department of Government Efficiency and Russell Vought, the leader of the White House budget office and now acting director of the CFPB, took control.

They and congressional Republicans have accused the agency of overreach and not being politically accountable.

Internal emails obtained by ABC News show Vought advised the agency’s headquarters in Washington will be closed all week and told employees, “Please do not perform any work tasks.”

In a post on X Saturday night, Vought said the CFPB’s funding, which comes through the Federal Reserve, is “now being turned off.”

Democratic Sen. Elizabeth Warren, who helped create the CFBP, posted a video on Monday “ringing the alarm bell” on what the impact will be if its gutted.

Warren highlighted what she said the agency does for average Americans, including finding fraud in payment apps, stepping in if a bank tries to repossess your car and working to cut credit card fees. She argued that only Congress can dismantle the CFPB, and that Trump and Musk do not have the authority to do so unilaterally.

“So, why are these two guys trying to gut the CFPB? It’s not rocket science: Trump campaigned on helping working people, but now that he’s in charge, this is the payoff to the rich guys who invested in his campaign and who want to cheat families — and not have anybody around to stop them. Yeah, it’s another scam,” she said.

Congressional Democrats and others protested outside the agency on Monday afternoon.

Here is what to know about the agency and its work.

What is the Consumer Financial Protection Bureau?

The CFPB is an independent agency established by Congress after the 2008 financial crisis under the Dodd-Frank Wall Street Reform and Consumer Protection Act. It’s a consumer watchdog aimed at protecting American households from unfair and deceptive practices across the financial services industry.

Its oversight applies to everything from mortgages to credit cards to bank fees to student loans. By law, the CFPB has the rare ability to issue new rules — and impose fines against companies who break them.

Since its establishment in 2011, the CFPB says it has clawed back $20.7 billion for American consumers.

Unlike many federal agencies that are beholden to appropriations battles in Congress, the CFPB’s funding comes through the Federal Reserve system. This has made it a frequent target by Republicans and industry groups. Last summer, the Supreme Court ruled the CFPB’s source of funding is constitutional.

Key actions under the Biden administration

Under the Biden administration, the CFPB took aggressive steps to take on big players in the banking and financial services industries — issuing regulations that aimed to put money back in the pockets of tens of millions of Americans.

In December, it finalized a rule that would cap most bank overdraft fees at $5 (right now those fees can be as high as $35 per transaction). The agency said that would save the typical household $225 per year, or about $5 billion in total. That rule was set to take effect October 1, 2025 — but its fate is now in limbo given the work stoppage order from acting director Vought.

The CFPB also finalized a rule in January that would wipe medical debt from Americans’ credit reports. The agency estimated that would affect roughly 15 million Americans with $49 billion in unpaid medical bills on their credit reports. The change, set to take effect in March, is currently on hold as it faces legal challenges. A similar rule capping credit card late fees is also in legal limbo.

Beyond issuing new rules, the CFPB also addresses direct complaints from consumers who might have been scammed on everything from credit cards to cryptocurrency to car loans.

Overseeing mortgages and banks

The 2008 recession exposed how many Americans were left vulnerable in the unregulated subprime mortgage market. One of the key goals of the CFPB was to oversee the “nonbank mortgage market.” In other words, this applies to homebuyers who take out mortgages through independent lenders that aren’t banks.

According to the CFPB, nonbank lenders account for 65% of all mortgages in the U.S. in a market worth $13 trillion.

In practice, what this means is that the CFPB monitors and keeps tabs on nonbank lenders to try to ensure they aren’t deceiving or ripping off customers.

The agency also supervises banks and credit unions holding more than $10 billion in assets, accounting for more than 80% of the banking industry’s total assets. This includes banks like JPMorgan, Citigroup and Bank of America. Other federal agencies like the Fed, FDIC and Office of the Comptroller also regulate banks.

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Chances of asteroid striking Earth in the next decade has nearly doubled, NASA says

Chances of asteroid striking Earth in the next decade has nearly doubled, NASA says
Chances of asteroid striking Earth in the next decade has nearly doubled, NASA says
NASA/jPL-Caltech/Getty Images

(NEW YORK) — The chances of an asteroid striking Earth within the next decade has doubled in a matter of weeks, according to NASA astronomers.

The asteroid, discovered just after Christmas and named 2024 YR4, could strike the planet in December 2032 as it approaches during another journey around its orbit, according to NASA’s Center for Near Earth Object Studies.

When the detection of the asteroid was announced last month, NASA predicted just a 1.3% probability of it hitting Earth. The likelihood has increased to 2.1%.

The overall probability may be low, but a 2% chance of an asteroid strike is “uncommon,” Davide Farnocchia, navigation engineer with NASA’s Jet Propulsion Laboratory, told ABC News.

“Getting something with a probability this high, like 2%, which is high for us,” he said.

On the Torino scale — the method for categorizing the impact hazard associated with near-Earth objects — 2024 YR4 is ranking at three out of 10, Farnocchia said, adding that most space objects rank at a zero.

The object was discovered in late December as it made a close approach towards Earth, but it is now moving away, Farnocchia said.

The elongated shape of the orbit takes the asteroid around the sun and into Earth’s vicinity before it ventures far out between the orbits of Mars and Jupiter.

Because of the unusual orbit, the asteroid will disappear starting in April until 2028, according to NASA.

The uncertainty surrounding this space rock is still prominent as astronomers race to find out as much as they can about the asteroid before they lose sight of it.

“We don’t want to take any chances,” he said.

The asteroid measures between 130 feet and 330 feet in diameter and large enough to potentially cause localized damage were it to strike a populated city, according to NASA.

In 1908, the Tunguska asteroid, which was a similar size, flattened trees over an area of about 1,250 miles after it exploded in the skies over Siberia.

The worldwide astronomy community is paying close attention to this asteroid and any others that could potentially impact the planet using multiple telescopes as well as measurements to detail the objects’ positions in space, Farnocchia said.

“We are tracking this object every night,” he said.

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2 Americans injured in suspected shark attack in the Bahamas: Police

2 Americans injured in suspected shark attack in the Bahamas: Police
2 Americans injured in suspected shark attack in the Bahamas: Police
Mary Baratto/Getty Images

(BAHAMAS) — Two Americans were injured, one seriously, in a suspected shark attack in the Bahamas, police said.

The two female tourists were swimming in Bimini Bay on Friday around 6:30 p.m. when the incident occurred, the Royal Bahamas Police Force said over the weekend.

“Initial reports indicate that the victims, both U.S.A. residents, sustained injuries while swimming in the waters at Bimini Bay,” police said.

Both women sustained injuries to their lower bodies, with one of the victims injured seriously, police said.

They both were initially treated at a local clinic before being airlifted to New Providence for further medical attention, police said.

Both have since returned to the U.S., Bahamian officials said Monday.

One of the victims will require a third surgery to repair the damage to her leg, her family told ABC News. She will undergo the surgery in the Orlando, Florida, area, her family said.

The incident remains under investigation.

Shark attacks are exceedingly rare. There were 69 unprovoked shark bites recorded around the world in 2023, according to the most recent yearly research conducted by the Florida Museum of Natural History’s International Shark Attack File.

Of those, one of them occurred in the Bahamas and was deadly, according to the report. In that incident, a 44-year-old woman from Massachusetts was killed by a shark while paddleboarding near the back of the Sandals resort, according to the Royal Bahamas Police Force.

ABC News’ Anselm Gibbs and Alondra Valle contributed to this report.

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Hegseth orders immediate pause on gender-affirming medical care for transgender service members

Hegseth orders immediate pause on gender-affirming medical care for transgender service members
Hegseth orders immediate pause on gender-affirming medical care for transgender service members
Alex Wong/Getty Images

(WASHINGTON) — Defense Secretary Pete Hegseth ordered an immediate pause on gender-affirming medical care procedures for all active-duty service members in a memo that was addressed to senior Pentagon leadership and military command.

The Feb. 7, 2025, memo, which was obtained today by ABC News, also ordered an immediate pause on all new promotions in the military for individuals “with a history of gender dysphoria.”

“Effective immediately, all new accessions for individuals with a history of gender dysphoria are paused, and all unscheduled, scheduled, or planned medical procedures associated with affirming or facilitating a gender transition for Service members are paused,” the memo says.

“Individuals with gender dysphoria have volunteered to serve our country and will be treated with dignity and respect,” the memo continued, adding that the Department of Defense would provide “additional policy and implementation guidance” to service members “with a current diagnosis or history of gender dysphoria.”

The memo came after President Donald Trump signed an executive order on Jan. 28 rescinding Biden administration policies that permitted transgender service members to serve openly in the military based on their gender identity. The executive order is being challenged in federal court by prominent LGBTQ+ advocacy groups, including Human Rights Campaign, which filed a pair of lawsuits against the Trump administration on behalf of active-duty transgender service members.

The executive order directed the Department of Defense to revise the Pentagon’s policy on transgender service members and stated that “expressing a false “gender identity” divergent from an individual’s sex cannot satisfy the rigorous standards necessary for military service.”

The order further argued that receiving gender-affirming medical care is one of the conditions that is physically and mentally “incompatible with active duty.”

“Consistent with the military mission and longstanding DoD policy, expressing a false ‘gender identity’ divergent from an individual’s sex cannot satisfy the rigorous standards necessary for military service,” the order continued.

Hegseth echoed this sentiment in the Feb. 7 memo, saying that “efforts to split our troops along lines of identity weaken our Force and make us vulnerable. Such efforts must not be tolerated or accommodated.”

Human Rights Campaign and Lambda Legal filed a federal lawsuit on Thursday on behalf of six active-duty transgender service members, challenging the Trump administration over the president’s ban on transgender service members.

“By categorically excluding transgender people, the 2025 Military Ban and related federal policy and directives violate the equal protection and due process guarantees of the Fifth Amendment and the free speech guarantee of the First Amendment,” the lawsuit said. “They lack any legitimate or rational justification, let alone the compelling and exceedingly persuasive ones required. Accordingly, Plaintiffs seek declaratory, and preliminary and permanent injunctive, relief.”

A similar lawsuit against the Trump administration was filed on Jan. 28 in the U.S. District Court for the District of Columbia by advocacy groups GLAD Law and the National Center for Lesbian Rights (NCLR) on behalf of six additional active duty service members.

“By categorically excluding transgender people, the 2025 Military Ban and related federal policy and directives violate the equal protection and due process guarantees of the Fifth Amendment and the free speech guarantee of the First Amendment,” the lawsuit said. “They lack any legitimate or rational justification, let alone the compelling and exceedingly persuasive ones required. Accordingly, Plaintiffs seek declaratory, and preliminary and permanent injunctive, relief.”

A similar lawsuit against the Trump administration was filed on Jan. 28 in the U.S. District Court for the District of Columbia by advocacy groups GLAD Law and the National Center for Lesbian Rights (NCLR) on behalf of six additional active duty service members.

ABC News reached out to the White House regarding the lawsuits but requests for comment were not returned.

The immediate impact of the memo on transgender service members is unclear, but ABC News has reached out to the plaintiffs in each of those lawsuits for comment.

Shannon Minter, lead counsel of NCLR, told ABC News in a statement on Monday that Hegseth’s memo “underscores the urgency of the need for court intervention.”

“The administration is already taking steps to implement the ban even before the stated deadlines in the original executive order,” Minter said. “Transgender applicants are already being turned away and transgender service members are being targeted and denied medically necessary care.”

Court records show that a hearing in this case is scheduled on February 18 in the D.C. district court, where Judge Ana Reyes is presiding over the case.

ABC News’ Briana Stewart contributed to this report.

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Judge says he will continue to pause Trump’s federal buyout offer

Judge says he will continue to pause Trump’s federal buyout offer
Judge says he will continue to pause Trump’s federal buyout offer
Kevin Dietsch/Getty Images

(BOSTON) — A federal judge in Boston said Monday he will continue to pause the Trump administration’s plan to offer a deferred resignation buyout to tens of thousands of federal employees until he issues a ruling on a preliminary injunction.

Three federal employee unions — with the support of 20 Democratic attorneys general — have argued that the Office of Personnel Management’s deferred resignation offer is an “unlawful ultimatum” to force the resignation of government workers under the “threat of mass termination.”

The pause, ordered by U.S. District Judge George A. O’Toole Jr., came just hours ahead of the program’s midnight deadline, which itself was extended by four days following a temporary restraining order that continues to remain in effect.

During an hour-long hearing Monday, a lawyer for the Department of Justice framed the deferred resignation offer as a “humane off-ramp” for federal employees before President Donald Trump enacts sweeping changes to “rebalance and reorganize the federal workforce.”

“President Trump campaigned on a promise to reform the federal workforce,” DOJ attorney Eric Hamilton said, outlining Trump’s plan to reduce the size of the federal government and his return-to-office executive order. “We understand these announcements may have come as a disappointment for some in the federal workforce.”

Hamilton argued that any further delay of the buyout would cause irreparable harm because the Trump administration plans to enact the next steps of reshaping the federal government as soon as the buyout window closes.

Elena Goldstein, a lawyer representing the unions that brought the challenge, hammered the Trump administration for attempting to enforce an “unprecedented program” with a “slapdash exploding deadline”

“For the last two weeks, confusion has rained for millions of career civil servants,” Goldstein said. “This is a program of unprecedented magnitude that raises questions about the rationality of OPM’s decision-making.”

The buyout offer, part of Trump’s effort to trim the size of government through billionaire Elon Musk’s newly formed Department of Government Efficiency, was sent out two weeks ago in an email with the subject line “Fork in the Road” — the same language Musk used when he slashed jobs at Twitter after taking over that company in 2022.

The offer, from the Office of Personnel Management, offered full pay and benefits until September for any federal employee who accepted a deferred resignation by Feb. 6, with no obligation to work after they accepted the agreement.

While Goldstein acknowledged that Trump has the right to downsize the federal government, she emphasized that OPM has not gone through any of the steps necessary to carry out such a sweeping move — including analyzing the cost and benefits of their approach, evaluating its impact on the government’s function, and accessing potential conflicts of interest for Musk. She added that the exact terms of the buyout are “shifting” for thousands of employees who have gotten inconsistent guidance from their agency.

“OPM appears to be making this up as they are going along,” she said. “When the government wants to decide, there are ways to do this correctly … none of that happened here in the two weeks since they enacted this program.”

Arguing for the government, Hamilton criticized the plaintiffs’ argument as “legally incoherent and at odds with their theory of the case,” because a further delay of the buyout would “insert more uncertainty” into the lives of federal employees.

While the plaintiffs raised concerns that the buyout program violates federal law by using money that Congress never appropriated, Hamilton attempted to push back on the claim that the buyout changes the government’s financial obligations.

“Nothing about the voluntary resignation changes anything about the federal government’s financial obligations. It just changes what employees are expected to do and not do during their period of employment,” Hamilton said.

Goldstein argued that a preliminary injunction is necessary to prevent what she said was an unlawful offer to reshape the federal government while the Trump administration continues to “put additional pressure on employees.”

“This is an unprecedented action taken on an unprecedented timeline,” she said.

Just hours ahead of Thursday’s original deadline for employees to accept the offer, Judge O’Toole — who was nominated to the bench by President Bill Clinton — temporarily blocked the offer until Monday so he could consider issuing a temporary restraining offer pausing the order.

“I enjoined the defendants from taking any action to implement the so-called ‘Fork Directive’ pending the completion of briefing and oral argument on the issues,” Judge O’Toole said in his ruling. “I believe that’s as far as I want to go today.”

The Trump administration, in response, “extended” the deadline for the offer, which more than 65,000 federal employees have already taken.

“We are grateful to the judge for extending the deadline so more federal workers who refuse to show up to the office can take the Administration up on this very generous, once-in-a-lifetime offer,” press secretary Karoline Leavitt said last week.

The unions who brought the lawsuit argued that Trump exceeded his authority as president with the offer, which they described as a “slapdash resignation program.”

According to the plaintiffs, Trump’s offer violates federal law, lacks congressionally appropriated funding, and does not offer employees reassurance that the president would follow through with the offer. Their claim in part relies on a federal law from the 1940s called the Administrative Procedure Act that governs how federal agencies create and enforce rules.

“In the tech universe, ‘move fast and break things’ is a fine motto in part because they’re not playing with the public’s money, and it’s expected that most initiatives are going to fail,” Loyola Marymount law professor Justin Leavitt told ABC News. “Congress knows that, so in 1946 they basically said, ‘When agencies do stuff … they have to be careful about it. They’ve got to consider all aspects of the problem.”

The plaintiffs also argued that the buyout is unlawful because it relies on funding that Congress has yet to appropriate, violating the Antideficiency Act.

“Defendants’ ultimatum divides federal workers into two groups: (1) those who submit their resignations to OPM for a promised period of pay without the requirement to work, and (2) those who have not and are therefore subject to threat of mass termination,” the lawsuit said.

Lawyers for the federal government have pushed back on those claims, arguing that Trump has the legal authority to provide the buyout for employees within the federal branch, and that any further delay would do more harm than good.

“Extending the deadline for the acceptance of deferred resignation on its very last day will markedly disrupt the expectations of the federal workforce, inject tremendous uncertainty into a program that scores of federal employees have already availed themselves of, and hinder the Administration’s efforts to reform the federal workforce,” DOJ attorney Joshua E. Gardner wrote in a filing last week.

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Billions of NIH scientific research dollars set to be cut by federal government

Billions of NIH scientific research dollars set to be cut by federal government
Billions of NIH scientific research dollars set to be cut by federal government
Scott J. Ferrell/CQ-Roll Call, Inc via Getty Images

(WASHINGTON) — The federal government has drastically lowered some of the funding that universities and research institutions receive from medical and scientific grants.

News of the cuts rattled the scientific community with many scientific institutions set to lose millions of dollars in funding annually.

The National Institutes of Health (NIH), the country’s primary agency responsible for conducting and supporting medical research, provides federal research grants to universities and research institutions in two separate buckets – direct and indirect costs.

Direct costs are expenses related to conducting research, such as paying for researchers’ salaries or travel as well as funding the equipment and supplies necessary for experiments. Indirect costs, also known as facilities and administrative (F&A) costs, include other expenses such as student services and paying for building expenses like utilities.

Previously, most universities had negotiated indirect cost funds with the federal government, with some acquiring as much as 70% or more. Now, those rates will be capped at 15%.

Attorneys general from 22 states immediately sued to block the NIH from enacting the rate change, arguing the policy would result in “catastrophic financial consequences.”

The lawsuit alleged that the policy would likely result in the closure of research programs, layoffs and furloughs, disruptions to clinical trips and “potentially [jeopardize] people’s lives and health.”

“Indirect costs are the backbone of IHEs’ research programs and cover everything from utilities to facilities and equipment maintenance to payroll for faculty and staff to compliance programs, hazardous waste disposal, and more,” the lawsuit said. “They quite literally keep the lights on.”

The lawsuit asked the Massachusetts District Court to immediately issue a temporary restraining order blocking the policy, arguing the policy would cause irreparable harm and is a clear violation of Administrative Procedure Act, which governs how the federal agencies create and enforce regulations.

In a social media post, the NIH noted that $9 billion of the $35 billion for research that was granted last year were for indirect costs. The agency anticipates that the rate cap will save more than $4 billion annually.

Funding from the NIH supports roughly 412,000 jobs and $92 billion in economic activity, according to a report from United for Medical Research, a coalition of top research universities, medical associations, and biomedical and pharmaceutical companies.

The report argues that NIH funding is not just responsible for university jobs – but also supports local industry and economic activity that bring additional benefits to their communities and states.

In a letter to students and faculty, Harvard University addressed the rate cuts noting, “the discovery of new treatments would slow, opportunities to train the next generation of scientific leaders would shrink, and our nation’s science and engineering prowess would be severely compromised.”

In a similar letter, Stanford University noted that, “a cut of this magnitude would potentially have deep impacts on medical care, human health, and America’s place in the world as the leader of biomedical research.”

Research funding isn’t limited to institutions in the Northeast or California. Florida, Tennessee, Missouri, Ohio and Georgia all received roughly $1 billion in funding from the institutes, according to active funding data from NIH.

The University of Alabama-Birmingham, the state’s largest employer, is among the top recipients of NIH funding, and received more than $413 million in NIH awards in 2023.

North Carolina, with more than 3,000 active projects and $3 billion in active NIH funding, and Texas, with more than 4,400 active projects and $2.5 billion in active NIH funding, are also among the GOP-leaning states that received NIH grants and support.

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Trump, Vance and Musk take aim at the courts as judges halt some of 2nd term agenda

Trump, Vance and Musk take aim at the courts as judges halt some of 2nd term agenda
Trump, Vance and Musk take aim at the courts as judges halt some of 2nd term agenda
Roberto Schmidt/AFP via Getty Images

(WASHINGTON) — President Donald Trump and key members of his administration are lashing out at judges who have halted some of his second-term agenda, suggesting they don’t have the authority to question his executive power.

So far, the courts have pushed back on Trump’s attempts to end birthright citizenship, freeze federal grants, and the overhaul of federal agencies like USAID and the Consumer Financial Protection Bureau.

Over the weekend, the administration hit another roadblock when a federal judge temporarily restricted Elon Musk’s Department of Government Efficiency from accessing the Treasury Department’s vast federal payment system, which contains sensitive information of millions of Americans.

Musk accused the judge of being “corrupt” and called for him to be immediately impeached.

Vice President JD Vance, as he’s done before, questioned judicial oversight of the executive branch. In an interview with ABC News’ George Stephanopoulos last year, Vance suggested a president can ignore a court’s order — even a Supreme Court order — he considers illegitimate.

“If a judge tried to tell a general how to conduct a military operation, that would be illegal. If a judge tried to command the attorney general in how to use her discretion as a prosecutor, that’s also illegal. Judges aren’t allowed to control the executive’s legitimate power,” Vance said over the weekend.

Trump was asked on Sunday about Vance’s comments and some of his setbacks in court.

“When a president can’t look for fraud and waste and abuse, we don’t have a country anymore,” Trump told reporters. “So, we’re very disappointed, but with the judges that would make such a ruling. But we have a long way to go.”

“No judge should, frankly, be allowed to make that kind of a decision,” the president added. “It’s a disgrace.”

Their pushback against the judiciary comes as Trump and his allies assert a sweeping theory of presidential power, one they say gives him sole control of the executive branch. Legal experts told ABC News they believe the Trump administration is trying to set up cases to test that theory before the Supreme Court.

Democrats say Trump is trying to subvert checks and balances under the U.S. Constitution, including the role of Congress in setting the scope of federal agencies and conducting oversight.

“I think this is the most serious constitutional crisis the country has faced certainly since Watergate,” Connecticut Sen. Chris Murphy said on ABC’s “This Week” on Sunday. “The president is attempting to seize control of power, and for corrupt purposes.”

California Democratic Sen. Adam Schiff responded directly to Vance’s suggestion judges aren’t “allowed to control” Trump’s executive power on X, writing: “JD, we both went to law school. But we don’t have to be lawyers to know that ignoring court decisions we don’t like puts us on a dangerous path to lawlessness.”

Republicans are largely aligned behind the president. Arkansas Sen. Tom Cotton slammed the judge who blocked DOGE’s access to Treasury data as an “outlaw.” Rep. Jim Jordan, chairman of the House Judiciary Committee, largely defended Musk’s actions as “carrying out the will” of Trump on CNN on Sunday.

Michael Gerhardt, a constitutional law expert at the University of North Carolina, told ABC News Trump’s rhetoric is largely “bravado” as “judges are entitled to review the constitutionality of presidential actions.”

“The conflict between the Trump administration and the courts is not just brewing; it is likely to persist throughout his second term,” Gerhardt said, noting Trump has a long history of criticizing judges with whom he disagrees even if they were appointed by Republican presidents.

“I think this battle will define Trump’s presidency,” Gerhardt added.

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Judge to consider order to keep DOGE from accessing student loan databases

Judge to consider order to keep DOGE from accessing student loan databases
Judge to consider order to keep DOGE from accessing student loan databases
Smith Collection/Gado/Getty Images

(WASHINGTON) — A federal judge will hear arguments Monday on efforts by a group of California public university students to block Elon Musk’s Department of Government Efficiency from accessing highly sensitive federal student loan records maintained by the Department of Education.

An organization representing more than 200,000 students enrolled in California’s public universities has brought suit seeking a temporary restraining order to block DOGE from accessing the student loan records as part of its effort to slash government spending.

The lawsuit, one of several that DOGE is facing, alleges that individuals associated with DOGE are illegally attempting to access the personal and financial information of the more than 42 million borrowers — accounting for more than 12% of the U.S. population — who have federal student loans.

A handful of people working with DOGE were spotted at the Department of Education last week and some now have access to the agency’s records and files, according to sources familiar with the matter.

“The scale of the intrusion into individuals’ privacy is enormous and unprecedented,” the lawsuit said, alleging that Musk’s team could access the bank account numbers, income information, dates of birth, and social security numbers of millions through the Education Department’s Office of Federal Student Aid.

DOGE workers are now listed in the Department of Education’s email directory, meaning they were hired as employees, sources also told ABC News.

The Department of Education is the smallest cabinet-level agency, with 4,400 employees. Some 1,400 employees work in the department’s FSA office, which distributes money — including loans and grants — for students to pursue higher education.

The University of California Student Association lawsuit, filed against Acting Secretary of Education Denise Carter, alleged that DOGE has engaged in a “systematic, continuous, and ongoing violation of federal laws” meant to protect the security of data held by the federal government.

“People who take out federal student loans to afford higher education should not be forced to share their sensitive information with ‘DOGE.’ And federal law says they do not have to,” the lawsuit said. The lawsuit also raised concerns with the lack of transparency surrounding DOGE, which they alleged might share the sensitive information with third parties.

“Because Defendants’ actions and decisions are shrouded in secrecy, individuals do not have even basic information about what personal or financial information Defendants are sharing with outside parties or how their information is being used,” the lawsuit said.

Last week, Sens. Elizabeth Warren and Minority Leader Chuck Schumer wrote a letter to Carter requesting information about whether Musk and his team have been provided access to National Student Loan data, among other sensitive borrower information.

“There are over 40 million federal student loan borrowers in the United States,” the senators, along with 14 others, wrote. “It is not at all clear that DOGE officials meet the strict criteria that would allow them to access this sensitive information protected by federal law–or whether DOGE officials have gained access to other sensitive ED databases as part of their efforts to “reform” the agency,”

The senators also asked Carter to describe what safeguards are in place to ensure that student loan data is not misused. The letter urged Carter to ensure that Musk and his team have not been provided access to any other databases managed by the department.

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At least 51 killed as bus plunges into ravine in Guatemala

At least 51 killed as bus plunges into ravine in Guatemala
At least 51 killed as bus plunges into ravine in Guatemala
Omar Havana/Getty Images

(GUATEMALA CITY) — At least 51 people were killed as a bus plunged into a ravine early Monday in Guatemala City, officials said.

At least 20 more were seriously injured, they said.

City officials said the incident occurred when the bus veered off a highway and went into a ravine.

Photos released by fire officials showed the bus upside-down in the ravine as they pulled passengers from the wreckage.

In a statement, Guatemalan President Bernardo Arevalo said the country’s army and disaster relief agency would aid in the response.

Arevalo also said he would declare a period of national mourning.

“I stand in solidarity with the families of the victims who today woke up to heartbreaking news. Their pain is my pain,” he said.

ABC News’ Aicha El Hammar Castano and Will Gretsky contributed to this report.

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DeepSeek banned from government devices in New York state

DeepSeek banned from government devices in New York state
DeepSeek banned from government devices in New York state
Faisal Bashir/SOPA Images/LightRocket via Getty Images

(ALBANY, N.Y.) — New York government employees are barred from downloading DeepSeek’s artificial intelligence application onto state devices due to security concerns, Gov. Kathy Hochul announced Monday.

The DeepSeek chatbot, known as R1, responds to user queries just like its U.S.-based counterparts, such as the popular ChatGPT. But the China-based DeepSeek has code hidden in its programming that has the built-in capability to send user data directly to the Chinese government, experts told ABC News.

“Public safety is my top priority,” Hochul said in a statement. “New York will continue fighting to combat cyber threats, ensure the privacy and safety of our data, and safeguard against state-sponsored censorship.”

Last year, Hochul issued guidance for the “responsible use of AI” in New York’s government to help improve operations while “protecting privacy, managing risk and promoting accountability, safety and equity,” according to the governor’s office.

Rep. Josh Gottheimer, D-N.J., who serves on the House Intelligence Committee, told ABC News he thinks DeepSeek should be banned “from all government devices immediately.”

“No one should be allowed to download it onto their device. And I think we have to inform the public,” he said.

Gottheimer and Darin LaHood, R-Ill., introduced a bipartisan bill to ban DeepSeek from all government devices last week.

“The Chinese Communist Party has made it abundantly clear that it will exploit any tool at its disposal to undermine our national security, spew harmful disinformation, and collect data on Americans. Now, we have deeply disturbing evidence that they are using DeepSeek to steal the sensitive data of U.S. citizens. This is a five alarm national security fire,” Gottheimer said in a statement.

Texas Gov. Greg Abbott banned DeepSeek on government devices, the first states to do so, on Jan. 31.

President Donald Trump was asked on Friday whether he believed DeepSeek was a national security threat, to which he replied, “No, I mean, I think it’s happening. It’s a technology that’s happening. … It’ll be a lot less expensive, the AI, we’re talking about, will be a lot less expensive that people originally thought. That’s a good thing. I view that as a very good development, not a bad development.”

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