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DOGE Blockchain Blocked from Accessing US Education Department Data

Elite Personal Finance

Last Update: March 4, 2025 • Financial News •

With Elon Musk’s crusade to produce billions of dollars’ worth of cuts across public services in the name of saving Medicaid and critical federal programs, the U.S. Department of Education and a temporary judge ruling have prevented the Department of Government Efficiency (DOGE) from accessing its servers, raising security concerns and the need to safeguard student information.

As part of a larger conversation about agency sharing, the information in question is personal and pertains to student loan borrowers. Mandated by federal judge Deborah Broadman in Maryland, the recent ruling has highlighted significant concerns about DOGE’s ability to tap into private student data, including income and Social Security numbers, to prevent abuse and fraud.

Specifically, they are prohibited from sharing this information with Musk due to a recent order to maintain the mandate through 8:00 a.m. on March 10, 2025.

American Federation of Teachers president Randy Weingarten noted that one of the biggest proponents of the data blockage is one of the country’s most prominent educators, healthcare workers, and public employee unions.

“When people give their financial and other personal information to the federal government—namely to secure financial aid for their kids to go to college, or to get a student loan—they expect that data to be protected and used for the reasons it was intended.”

Cybersecurity expert Dr. Emily Carter has also said:

“The decision to block DOGE from accessing Education Department servers is a necessary step to protect sensitive student data. In an era where cyberattacks are increasingly sophisticated, federal agencies must prioritize data security over efficiency. The Privacy Act of 1974 exists for a reason—to ensure that personal information is handled with the utmost care and responsibility.”

Issues with Elon Musk, Data Sharing, and DOGE

This latest squabble between the Department of Education and DOGE marks Elon Musk’s latest disagreement over public policy and federal spending. As of now, significant budget cuts have been announced across countless federal departments to eliminate waste and fraud, threatening even critical services like Medicaid and Medicare.

For example, DOGE has already cut $3 billion from the Department of Transportation’s budget, leading to the cancellation of infrastructure projects, reductions in administrative overhead, and the redirection of funds into higher-priority projects. Of course, this has raised concerns among those who believe it hampers long-term economic growth—and they may be right. The cuts have already resulted in lost construction jobs.

Another area Elon Musk’s DOGE has heavily targeted is the Environmental Protection Agency, which has seen a roughly $1.5 billion budget cut. Primarily, this undercuts climate research programs, which many Democrats argue will hurt efforts to address climate change and reduce funding for state-led research initiatives.

What’s the Privacy Act of 1974 About?

The Privacy Act of 1974 is relevant when discussing the Department of Government Efficiency’s attempt to access Department of Education data.

For states, it governs how federal agencies manage personal information. Specifically, it mandates proper data collection practices and ensures accurate and up-to-date records. It also provides guidelines around data sharing and grants individuals the right to access and correct their records.

In the case of DOGE and the Education Department, the act highlights a clear violation, arguing that exposing student data subjects it to unnecessary risks. However, DOGE continues to push for access to this data under the guise of promoting the greater good.

ElitePersonalFinance’s Verdict

At ElitePersonalFinance, we’re conflicted about balancing government efficiency with sensitive data protection. While the U.S. Department of Education has long been criticized for its ineffectiveness (the United States’ educational system does not fare well on a global scale), streamlining federal operations can seem productive, albeit at the cost of countless job losses.

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