A US federal judge has ruled that grant cuts initiated by the Elon Musk-backed Department of Government Efficiency (DOGE) were unlawful. This decision followed reports that DOGE staff utilized ChatGPT and keyword searches — specifically those related to diversity, gender, and race — to identify and terminate funding programs across the National Endowment for the Humanities (NEH).
According to ABC News, US District Judge Colleen McMahon in New York issued the ruling on Thursday, effectively blocking the Trump administration from enforcing these disputed grant cancellations.
The Department of Government Efficiency, or DOGE, was reportedly established after Donald Trump's return to office in January 2025, with Elon Musk tasked to assist in federal spending reductions. Government agencies were promptly instructed to suspend DEI (Diversity, Equity, and Inclusion) programs and furlough diversity staff, aligning with a broader policy shift against equity and inclusion initiatives.
This latest ruling represents one of the strongest judicial condemnations regarding the execution of these cuts. Judge McMahon asserted that DOGE staff lacked the legal authority to terminate grants and criticized the process for its failure to adhere to, or even resemble, standard federal review systems. She explicitly stated, "There can be no serious dispute that the review process implemented by DOGE did not conform to, or even resemble, NEH's ordinary grant-review process."
Testimonies from former DOGE staff members Justin Fox and Nate Cavanaugh indicated that ChatGPT and specific keyword searches were employed to determine which federal grants should be cut. Court records confirm that terms such as 'DEI,' 'Equity,' 'Inclusion,' 'BIPAC,' and 'LGBTQ' were integral to this review process.
McMahon suggested that this methodology might violate the law, as it seemed to leverage protected groups and identities as criteria for defunding. She clarified, "Treating Black civil-rights history, Jewish testimony about the Holocaust, the oft-forgotten Asian American experience, the shameful treatment of the children of Native tribes, or the mere mention of a woman as a marker of lack of merit or wastefulness is not lawful."
The judge also voiced concerns regarding cuts impacting Holocaust-related projects and grants focused on Jewish history. She found it particularly alarming that projects about Jewish women who survived Nazi persecution were targeted, especially amid a resurgence of antisemitism in the US. McMahon wrote, "At a time when the specter of antisemitism has reemerged from the shadows, for our government to deem a project about Jewish women disfavored because it centered on Jewish cultures and female voices is deeply troubling."
The exact extent of AI's influence on the final decisions remains unclear. While testimonies suggest ChatGPT was used during the review, agency leaders reportedly retained ultimate authority over which grants were ultimately canceled.
The controversy surrounding DOGE's operations intensified as details emerged about the rapid pace of the cuts and the backgrounds of those involved. Fox and Cavanaugh, for instance, reportedly lacked prior government experience.
