A divided panel of the U.S. 4th Circuit Court of Appeals has ruled that the Department of Government Efficiency (DOGE) may retain access to sensitive federal agency data. The 3-judge panel handed down its 2-to-1 verdict in favor of DOGE on Tuesday (12th August) after a months-long legal battle against Trump’s controversial cost-cutting agency.

This ruling means that DOGE may retain and obtain information from the Office of Personnel Management (OPM), the Treasury Department, and the Department of Education, among others. It involves highly sensitive data as well, like Social Security numbers, citizenship records, educator and employee files, and taxpayer data.

The legal challenges began with multiple lawsuits filed against DOGE in February 2025, aimed at its access to information from the Treasury, Department of Labor, HHS, CFPB, Department of Education, and Office of Personnel Management.

A lower court had previously temporarily barred DOGE’s access during ongoing proceedings and the appeals process. However, the 4th Circuit asserted that the challengers, consisting of unions, Veterans Affairs, and the State of New York, had failed to demonstrate “harm or legal standing” as the data was not considered a “final agency action.”

Simply put, this means that the court sided with DOGE, citing the fact that no actual misuse or individual harm has been proven as of yet. And that it’s not under the court’s purview to rule on potential future misuse or consequences.

Still, legal experts claim that access to this data, especially from the IRS, may lead to misuse or violations of the Privacy Act of 1974 as well as statutes like FISMA and the Internal Revenue Code. There are also valid concerns from the public and political opposition that it could lead to a broadening of state mass surveillance and control.

The case could still be escalated to the Supreme Court (SCOTUS), but there’s no guarantee that it will be accepted for review.

This is another major blow to the US public’s right to privacy in 2025, with the White House also withdrawing a potential rule change that would limit the power of data brokers.