US appeals court pauses order forcing Musk's DOGE to turn over documents

(Reuters) -A federal appeals court on Wednesday paused an order that would have forced Elon Musk’s government cost-cutting initiative to turn over records and answer questions under oath about its efforts to slash bureaucracy under President Donald Trump.

The ruling by the U.S. Court of Appeals for the District of Columbia Circuit is a temporary reprieve for Musk and his Department of Government Efficiency, which faces judicial scrutiny over its lack of transparency. 

The underlying lawsuit in Washington, D.C. was filed by 14 Democratic state attorneys general, who say Musk violated the Constitution by wielding power that only officials confirmed by the U.S. Senate can exercise under the Appointments Clause.

U.S. District Judge Tanya Chutkan previously denied the states’ bid for a temporary restraining order barring Musk from taking further actions to cut spending while the case plays out, though she partially granted the states’ request for expedited discovery. 

Wednesday's appeals court ruling says the Trump administration is likely to prevail in its argument that Chutkan should have decided whether to dismiss the case before clearing the way for discovery, or the process where defendants must hand over documents and answer questions.    

Musk and DOGE have been a driving force behind the Trump administration's decision to fire tens of thousands of federal workers, though judges have held up those moves as they consider lawsuits. 

(Reporting by Jack Queen in New York; Editing by Stephen Coates)