"Google will not have to hand over any user's search queries to the government. That's what a federal judge ruled today when he decided to drastically limit a subpoena issued to Google by the Department of Justice."
The federal Government demanded billions of URL's and two months worth of users search engine queries and plans use the data for a study in another case in Pennsylvania, worked the Bush administration is trying to revive a law meant to shield children from online photography.
In a 21-page ruling, Judge James Ware of the US District Court Northern District of California said the privacy considerations of Google users leading to deny part of the justice department request.
link to entire ruling
link to governments original subpoena