New York Attorney General Letitia James is suing to stop the Treasury Department from sharing private personal information with DOGE, the Trump administration's new efficiency task force.
The ruling came hours before the midnight deadline for workers to apply for the deferred resignation program, which has been commonly described as a buyout.
More than 2 million employees have until Thursday at 11:59 p.m. EST to decide. Officials have been increasing pressure on workers to leave, saying furloughs or layoffs could come next.