State officials drop fight over Elon Musk's US government role

Zoe Tillman, Bloomberg News on Dec 15, 2025

By clicking submit, I authorize Arcamax and its affiliates to: (1) use, sell, and share my information for marketing purposes, including cross-context behavioral advertising, as described in our Privacy Policy , (2) add to information that I provide with other information like interests inferred from web page views, or data lawfully obtained from data brokers, such as past purchase or location data, or publicly available data, (3) contact me or enable others to contact me by email or other means with offers for different types of goods and services, and (4) retain my information while I am engaging with marketing messages that I receive and for a reasonable amount of time thereafter. I understand I can opt out at any time through an email that I receive, or by clicking here

A group of Democratic state attorneys general dropped one of the last remaining legal fights over whether President Donald Trump unlawfully delegated too much power to Elon Musk during the months the billionaire served within the administration.

The officials filed a notice on Monday evening in the federal district court in Washington notifying a judge that they were withdrawing their case, which was filed in February. They didn’t offer a reason, but the early flurry of court fights challenging Musk’s authority and his Department of Government Efficiency cost-slashing project largely petered out after he left in the spring.

A judge denied the government’s request to have the states’ lawsuit dismissed in late May, finding that the administration had appeared to endorse a “perverse reading” of the U.S. Constitution’s system of checks and balances and appeared “to sanction unlimited executive power.” But then the case lay largely dormant for months, until the judge asked for an update on whether there was any remaining “live controversy” for her to resolve.

A spokesperson for the New Mexico attorney general’s office, which led the group case, did not immediately respond to a request for comment. Spokespeople for Musk’s companies also did not immediately respond.

There are still two active cases that accuse Musk of taking on the powers of a Senate-confirmed official and playing an active role in directing firings and program cuts at U.S. agencies in violation of the U.S. Constitution’s Appointments Clause.

There’s another challenge to Musk’s authority still pending in Washington. The lawsuit was brought by advocacy groups that alleged Musk and DOGE staffers were instrumental in cutting federal programs that harmed their interests. On Monday, attorneys for those organizations told a judge that they wanted to proceed because DOGE’s formal status and the whereabouts of employees affiliated with the project were unknown.

The Justice Department contends any constitutional challenges related to Musk are now moot and expressed doubt that there were any other valid, live claims left.

In Maryland, a lawsuit brought by employees of the now-dissolved U.S. Agency for International Development has been moving forward after a judge denied the government’s bid to have it tossed out. In November, the Justice Department asked a judge to block lawyers for the challengers from deposing Musk and two former senior USAID officials. The judge hasn’t ruled yet.

The case is New Mexico v. Musk, 25-cv-429, US District Court, District of Columbia.