Judge Halts AI Mass Termination of 1,400 NEH Grants
A federal judge ruled the AI-driven termination of over 1,400 NEH grants unlawful and unconstitutional.
Why it matters: The decision sets a precedent limiting federal agencies’ use of AI for major grant decisions. It highlights judicial scrutiny of automation in government when constitutional rights—including free expression—are affected.
- Federal judge Colleen McMahon on May 7, 2026, overturned April 2025’s blanket termination of NEH grants.
- The Department of Government Efficiency (DOGE) used ChatGPT to flag and cancel grants mentioning DEI, BIPOC, or gender terms.
- The court found DOGE’s action violated the First and Fifth Amendments and exceeded its legal authority.
- The ruling mandates restoration of all affected funding and permanently blocks similar future terminations.
U.S. District Judge Colleen McMahon ruled the Department of Government Efficiency’s (DOGE) mass termination of more than 1,400 National Endowment for the Humanities (NEH) grants unlawful and unconstitutional.
- In April 2025, DOGE relied on ChatGPT to review and revoke NEH grants by searching for keywords like “DEI,” “BIPOC,” and “gay.” Projects emphasizing diversity, equity, and inclusion, environmental justice, and gender studies were most affected, losing over $100 million in total grants.
- Judge McMahon found DOGE’s reliance on AI for viewpoint-based selection infringed recipients’ First Amendment rights and denied due process under the Fifth Amendment. She described in her opinion: “The defendants terminated the grants based on the recipients' perceived viewpoint, in an effort to drive such views out of the marketplace of ideas.”
- The court also held DOGE had acted outside its legal authority—"ultra vires"—because no statute authorized such broad, automated terminations.
- Restoration of the grants is ordered, and the government is permanently blocked from enforcing the terminations, though operational details are pending. Restoration logistics are still being developed.
Paula M. Krebs of the Modern Language Association said the ruling “confirms the illegality of DOGE’s termination of over 1,400 grants” and reaffirms the nation’s commitment to the humanities.
This case highlights fresh boundaries on the role of artificial intelligence in public administration, with direct implications for legal, compliance, and policy professionals. As detailed in recent analysis, the decision could become a reference point in future litigation around automated government decision-making and constitutional rights.
By the numbers:
- 1,400+ — Number of NEH grants terminated in April 2025
- $100M+ — Approximate total value of the canceled grants
What's next: Grant restoration procedures are pending; further agency guidance expected in coming weeks.