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.

Marko Elez, the DOGE staffer who resigned after racist social media posts including a call to "normalize Indian hate" surfaced, will return to work for Musk, the billionaire announced.

A federal judge early Saturday blocked Elon Musk’s Department of Government Efficiency from accessing Treasury Department records that contain sensitive personal data such as Social Security and bank account numbers for millions of Americans.

One of the people working with billionaire Elon Musk in his efforts to overhaul the U.S. government is a Berkeley-educated computer scientist who has boosted white supremacists and misogynists online.

Marko Elez, 25, resigned Thursday from DOGE, after his controversial tweets promoting racism and eugenics were exposed.

Marko Elez, the 25-year-old staffer Department of Government Efficiency staffer linked to a social media profile with racist posts, “will be brought back,” shortly after he resigned, Elon Musk announced on X.

DOGE’s earlier actions at the Treasury have become a focus of congressional scrutiny and a federal court battle in recent days. Musk’s team initially tried to halt money going to the U.S. Agency for International Development from the Treasury’s payment system.

Angry and confused constituents have flooded the phone lines at the US Capitol this week, many of them asking questions about billionaire Elon Musk’s plans.

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