&w=3840&q=100)
Elon Musk must face lawsuit over power as Trump's aide, says judge
Elon Musk will have to face a lawsuit that claims the billionaire wielded illegal power by orchestrating President Donald Trump's dramatic cuts in federal government jobs and spending, a judge ruled.
US District Judge Tanya Chutkan on Tuesday denied a request by the Justice Department to toss the case filed by Democratic state attorneys general against Musk and the Department of Government Efficiency. But she dismissed a claim against Trump, saying courts can't limit the actions of a president performing his official duties.
Chutkan ruled the states presented specific enough allegations and preliminary evidence to proceed with claims that Musk was granted the same authority as Trump's Senate-confirmed cabinet. While Musk has been the public face of DOGE, he's denied he holds a formal position or has any authority to direct agencies to carry out the president's cost-cutting agenda. Musk said last month he'll significantly scale back his DOGE work to be 'super focused' on his businesses, including Tesla Inc. and SpaceX.
The judge found that the Trump administration had adopted a 'perverse reading' of the US Constitution's system of checks and balances and appeared 'to sanction unlimited executive power.'
'Under this reasoning, the President could authorize an individual to act as a Prime Minister who vetoes, amends, or adopts legislation enacted by Congress, as an Ultimate Justice who unilaterally overrules any decision by the Supreme Court, as a King who exercises preeminent authority over the entire nation, or allow a foreign leader to direct American armed forces,' Chutkan wrote.
A White House spokesperson and representative of the New Mexico attorney general's office, which is leading the 14-state coalition that sued, did not immediately respond to requests for comment.
Musk and his US DOGE Service have faced a slew of legal challenges since Trump took office in January. In addition to questioning the role of Musk and his DOGE-affiliated staff, some suits are seeking to block their access to agency systems and records that contain vast troves of Americans' financial and personal information.
While rulings to deny motions to dismiss normally can't be appealed, the Justice Department could argue for an exception because the case presents significant questions about presidential power and interpreting the US Constitution.
The lawsuit accuses Musk of violating the Constitution's Appointments Clause, which limits high-level decisions about US agency operations and personnel to officials who are nominated by the president and confirmed by the Senate. The states argued Trump 'bypassed' Congress and 'unilaterally granted massive, unchecked executive authority to Elon Musk and DOGE to destabilise the government.'
In court papers, the Democratic officials highlighted public statements Trump made about putting Musk in charge and Musk's comments appearing to take ownership of moves to shutter USAID and carry out a barrage of federal funding cuts, among other things. They argued that he wasn't simply making recommendations to Senate-confirmed agency heads, but rather was 'compelling' and 'directing' them to act or 'overruling' decisions they'd made.
No 'Formal Power'
In urging Chutkan to dismiss the case, Justice Department lawyers argued that even if they conceded Musk had 'massive' or even 'decisive' influence over US domestic policy, he didn't have the 'formal power to act.' As long as a Senate-confirmed official 'takes formal responsibility' for decisions that Musk recommended, there couldn't be a constitutional violation, the government said.
Chutkan wrote that Musk's title of 'special government employee' might be his 'formal classification' but 'not necessarily the position he holds.' She said the government had unsuccessfully tried to 'minimize' Musk's role and that the states put forward enough evidence at this stage that he was directing the actions of DOGE-affiliated staff at 17 federal agencies.
The government argued the states lacked standing to file the suit because they couldn't prove they faced imminent and concrete injuries from Musk and DOGE's efforts to carry out Trump's directive to identify waste, fraud and abuse at federal agencies.
But Chutkan again concluded that the states put forward enough evidence for now that their government offices and public institutions were affected by cuts to federal funding and programs that they allege Musk spearheaded. The attorneys general also argued that DOGE staff 'created a substantial risk of cybersecurity breaches' by improperly getting access to 'sensitive' state data.
Chutkan's decision comes after the US Court of Appeals for the DC Circuit in March paused her earlier ruling allowing the state attorneys general to demand records and information from Musk and the US DOGE Service. The appeals court had delayed that fight until Chutkan ruled on whether to let the case go forward.
The case is New Mexico v. Musk, 25-cv-429, US District Court, District of Columbia (Washington).
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mint
28 minutes ago
- Mint
Oil Surges as US Orders Partial Evacuation of Iraqi Embassy
Oil surged as the US government ordered a partial evacuation of its embassy in Iraq amid rising security risks. West Texas Intermediate futures jumped 4.9% to settle above $68 a barrel, the largest gain since October, as the Trump administration reduced embassy staff in Iraq and permitted military service-members' families to leave the region in response to ongoing security concerns. The UK Navy also issued a rare warning to mariners that higher tensions in the Middle East could affect shipping. The developments compounded speculation about possible supply disruptions in the Middle East after AFP reported that Iran threatened to target US military bases in the region if conflict breaks out. 'Iranian rhetoric has turned notably more hostile, and these threats are being substantiated by real-world developments,' said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. 'While geopolitical rallies are often seen as selling opportunities, this situation carries the added complexity of potential Israeli military action if negotiations break down, which is keeping traders more cautious about selling into the rally.' Elsewhere, President Donald Trump told the New York Post he's 'less confident' about whether he can convince Tehran to agree on shutting down its nuclear program. He also posted on social media that a trade deal with China was 'done,' subject to the approval of President Xi Jinping. Oil had been weighed down by expectations that a trade war between the world's two largest economies would hurt demand and that a deal with Iran would bring back sanctioned barrels, adding to rising OPEC supplies. Prices have recovered in recent sessions, supported by easing trade tensions and the outlook for summer demand. A monthly report from the US Energy Information Administration underscored the oil market's current uncertainties. While the agency expects supply to eclipse demand by 800,000 barrels a day this year, the most since it began publishing a forecast for 2025, it also doesn't see US crude production topping last month's levels before the end of next year, a sign that lower prices are curbing some supply. Signs of market tightness have also appeared along the futures curve. Earlier this week, the February-March WTI spread flipped to backwardation — where near-term prices are higher than longer-dated ones — for the first time since April, with several subsequent months following suit earlier today, signaling concerns about oversupply are easing. To get Bloomberg's Energy Daily newsletter in your inbox, click here. This article was generated from an automated news agency feed without modifications to text.


Indian Express
31 minutes ago
- Indian Express
Trump says China trade deal ‘done': 55% tariff, supply of rare earth minerals
President Donald Trump said Wednesday that the United States has reached a trade agreement with China, including an easing of curbs imposed by Beijing on export of rare earth minerals and magnets that are key inputs for industries ranging from automobiles to electronics. 'Our deal with China is done, subject to final approval with President Xi and me,' Trump said in a post on Truth Social. He said China would supply 'any necessary rare earths' and magnets, while the US would make concessions on allowing Chinese students to attend American universities. The Trump administration had recently begun to clamp down on the presence of Chinese nationals on US college campuses. 'We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!' Trump wrote, without elaborating. Bloomberg quoted a White House official as saying that the agreement allows the US to charge a 55 per cent tariff on imported Chinese goods, which, crucially, includes a 10 per cent baseline 'reciprocal' tariff, a 20 per cent tariff for fentanyl trafficking, and a 25 per cent tariff reflecting pre-existing tariffs (imposed by Trump in his first term, that the Biden administration persisted with). China would charge a 10 per cent tariff on American imports, the official said. Though the details of the deal were still unclear, analysts predicted that China seems to have gained the upper-hand after its rare earth restrictions prompted US carmakers, including Ford Motor and Chrysler, to cut production. Significantly, Trump said a final deal is subject to approval from him and Chinese President Xi Jinping. Chinese state media said earlier Wednesday that Beijing had reached a 'framework' for an agreement with the US during talks in London, but there was no official response from China on Trump's subsequent claims on Truth Social. Earlier, both the negotiating sides said they had agreed in principle to a framework for dialling down trade tensions between the world's two biggest economies. After the meeting in London — the second time the two sides have met in the last couple of months, since Trump's sweeping tariff onslaught — there were indications of a reconciliation. What is beginning to get clearer after the second meeting is that this is perhaps not how the US imagined the trade war to unfold. China is beginning to dictate the direction of the bilateral talks, with the US almost seen as requesting for much-needed concessions on the resumption of supplies of critical inputs. In the first round of talks in Geneva, the US delegation led by Treasury Secretary Scott Bessent had asked the Chinese to cut its tariffs in tandem with theirs, primarily because the Americans were facing the heat back home from the early fallout of the high tariffs, including empty shelves at grocery stories and surging prices of daily use commodities. In London, the US side is learnt to have specifically asked the Chinese to 'suspend or remove' restrictions on rare earths magnets, which had forced a supply-chain crunch. The London meeting follows a call between Trump and Xi on June 5, which was initiated by the White House — the first call since Trump's reciprocal tariff announcement. After the London talks, US Commerce Secretary Howard Lutnick said the deal should result in restrictions on rare earth minerals and magnets 'being resolved'. 'We have reached a framework to implement the Geneva consensus… Once the Presidents approve it, we will then seek to implement it,' he said. 'The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5 and the consensus reached at the Geneva meeting,' the BBC quoted China's Vice Commerce Minister Li Chenggang as saying. Chinese export controls over rare earth minerals were high on the agenda of the meetings. While Beijing has not imposed an outright ban on the export of rare earth magnets, the process has been made very difficult; it could take a long time to source, posing shortage risks. Rare earth magnets, especially neodymium-iron-boron (NdFeB) magnets, are crucial for EV manufacturing. They provide the strong magnetic fields needed for efficient and powerful electric motors, including traction motors that drive EVs. These magnets also play a major role in other EV components like power steering systems, wiper motors and braking systems. China has a virtual stranglehold over these rare earth magnets. In May, talks held in Geneva led to a temporary truce after the tit-for-tat tariff increases by both sides, which led to duties that peaked at 145 per cent. Trump called the outcome of the talks in Switzerland a 'total reset', which brought US tariffs on Chinese products down to 30 per cent, while Beijing cut duties on US imports to 10 per cent. Both sides also agreed to a 90-day deadline to try to reach a trade deal. However, the US and China have since accused each other of breaching the deal. The US has said that Beijing has been dragging its feet on opening up exports of rare earth metals and magnets while the Chinese claim that Washington has restricted its access to American goods such as semiconductors and other related technologies linked to artificial intelligence. US Trade Representative Jamieson Greer had said China had failed to roll back restrictions on exports of rare earth magnets. In the run-up to this week's talks, the Chinese Ministry of Commerce said on Saturday that it had approved some applications for rare earth export licences. The problem for the US is that the Chinese side has wrested some advantage, especially by leveraging its strategy of weaponing its dominance in key sectors. Rare earth minerals and magnets is one such area, where the US is now desperate for concessions. Both sides have since claimed breaches on non-tariff pledges, but the Americans clearly seem more eager for a reconciliation, given the impact of the Chinese blockade on its key manufacturing sectors. These Chinese trade blockades are already impacting companies in other geographies. Hamamatsu-based small car maker Suzuki Motors, for instance, said last week it plans to suspend the production of its flagship Swift compact hatchback due to China's rare earth restrictions, becoming the first Japanese automaker to be impacted. There are similar worries among other manufacturing entities across the world, including in the US. Anil Sasi is National Business Editor with the Indian Express and writes on business and finance issues. He has worked with The Hindu Business Line and Business Standard and is an alumnus of Delhi University. ... Read More

Hindustan Times
an hour ago
- Hindustan Times
US orders departure of non-essential personnel in Middle East as tensions rise
The United States is drawing down the presence of people who are not deemed essential to operations in the Middle East due to the potential for regional unrest, the State Department and military said Wednesday. The State Department said it has ordered the departure of all nonessential personnel from the U.S. Embassy in Baghdad based on its latest review and a commitment 'to keeping Americans safe, both at home and abroad.' The embassy already had been on limited staffing, and the order will not affect a large number of personnel. The department, however, also is authorizing the departure of nonessential personnel and family members from Bahrain and Kuwait. That gives them an option on whether to leave those countries. Defense Secretary Pete Hegseth also 'has authorized the voluntary departure of military dependents from locations' across the region, U.S. Central Command said in a statement. The command 'is monitoring the developing tension in the Middle East.' White House spokeswoman Anna Kelly confirmed the moves. 'The State Department regularly reviews American personnel abroad, and this decision was made as a result of a recent review,' Kelly said. Tensions in the region have been rising in recent days as talks between the U.S. and Iran over its rapidly advancing nuclear program appear to have hit an impasse. The talks seek to limit Iran's nuclear program in exchange for the lifting of some of the crushing economic sanctions that the U.S. has imposed on the Islamic Republic. Iran insists its nuclear program is peaceful. Also Read: Donald Trump wearing a Foley catheter? POTUS' latest appearance sparks health concerns The next round of talks — the sixth — had been tentatively scheduled for this weekend in Oman, according to two U.S. officials, who spoke on condition of anonymity to discuss diplomatic matters. However, those officials said Wednesday that it looked increasingly unlikely that the talks would happen. President Donald Trump, who has previously threatened to use military force against Iran if negotiations failed, gave a less-than-optimistic view about reaching a deal with Iran, telling the New York Post's 'Pod Force One' podcast that he was "getting more and more less confident about' a deal. Also Read: Trump says he would 'certainly invoke' Insurrection Act if needed amid Los Angeles protests 'They seem to be delaying, and I think that's a shame. I'm less confident now than I would have been a couple of months ago. Something happened to them," he said in the interview, which was recorded on Monday. Also Read: Donald Trump accepts Elon Musk's apology: 'Very nice that he did that' Iran's mission to the U.N. posted on social media that 'threats of overwhelming force won't change the facts.' 'Iran is not seeking a nuclear weapon, and U.S. militarism only fuels instability,' the Iranian mission wrote. Iranian Defense Minister Gen. Aziz Nasirzadeh separately told journalists Wednesday that he hoped talks with the U.S. would yield results, though Tehran stood ready to respond. 'If conflict is imposed on us, the opponent's casualties will certainly be more than ours, and in that case, America must leave the region, because all its bases are within our reach,' he said. 'We have access to them, and we will target all of them in the host countries without hesitation.' Meanwhile, the Board of Governors at the International Atomic Energy Agency was potentially set to vote on a measure to censure Iran. That could set in motion an effort to snap back United Nations sanctions on Iran via a measure in Tehran's 2015 nuclear deal with world powers that's still active until October. Trump withdrew from that deal in his first term. Earlier Wednesday, a statement from the United Kingdom Maritime Trade Operations center, a Mideast-based effort overseen by the British navy, issued a warning to ships in the region that it 'has been made aware of increased tensions within the region which could lead to an escalation of military activity having a direct impact on mariners.' It urged caution in the Persian Gulf, the Gulf of Oman and the Strait of Hormuz. It did not name Iran, though those waterways have seen Iranian ship seizures and attacks in the past.