A federal judge ruled on Friday to grant the U.S. Department of Justice's request to temporarily halt a lawsuit filed by SpaceX, owned by Elon Musk. The lawsuit challenges the Justice Department's ability to pursue allegations that SpaceX refused to hire certain immigrants.

U.S. Magistrate Judge Ignacio Torteya, based in Brownsville, Texas, made the decision following the Justice Department's request on January 19 to pause the lawsuit for 45 days. In its request, the DOJ suggested the possibility of dropping or settling the case.

This ruling comes shortly after the inauguration of Republican President Donald Trump on January 20, who brought in a new administration. Musk, a close adviser to Trump, is also leading a commission aimed at identifying inefficiencies and waste in the federal government.

SpaceX and the Justice Department have yet to comment on the decision.

The DOJ has accused SpaceX of discouraging asylum seekers and refugees from applying for jobs at the company between 2018 and 2022. They also claim SpaceX refused to hire such individuals. In response, SpaceX has denied any wrongdoing, asserting that federal export control laws only restrict its hiring to U.S. citizens and legal permanent residents.

In 2023, another judge had halted the Department of Justice (DOJ) from pursuing the case, deciding that the matter should be heard by an administrative judge instead, pending the lawsuit's resolution.

SpaceX took legal action to prevent the case, arguing that the U.S. attorney general improperly selects DOJ-appointed administrative judges. They contend that these judges are granted authority that should only be vested in officials appointed directly by the president.

Both Trump and Musk have voiced their concerns about the authority of federal agencies, including the DOJ, which handles in-house enforcement actions.

In his role leading the Department of Government Efficiency, Musk stated that the panel would suggest significant cuts to government spending, recommend layoffs of federal employees, and identify unnecessary or legally questionable regulations.

In addition, SpaceX is challenging the National Labour Relations Board (NLRB) structure in separate lawsuits, seeking to block the agency from handling cases related to alleged illegal labour practices at the company.