Judge rules Trump administration's cancellation of $100M+ humanities grants unconstitutional

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A federal judge permanently blocked the Trump administration's cancellation of over $100 million in humanities grants, ruling that DOGE lacked authority and violated constitutional rights. The decision scrutinized how officials used ChatGPT to identify and terminate more than 1,400 grants based on perceived DEI content, calling it unconstitutional viewpoint discrimination.

Federal Judge Blocks Cancellation of Humanities Grants

U.S. District Judge Colleen McMahon in Manhattan delivered a decisive blow to the Trump administration's effort to cancel more than $100 million in humanities grants, ruling the cancellation of humanities grants unconstitutional and permanently barring officials from terminating the funding

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. The decision sided with The Authors Guild, several other organizations, and individuals who sued the Department of Government Efficiency and the National Endowment for the Humanities after their grants were abruptly terminated

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Source: AP

Source: AP

The unconstitutional ruling found that DOGE lacked lawful authority to end the funding and that government officials violated both First and Fifth Amendments by engaging in viewpoint discrimination. More than 1,400 grants of congressionally approved funds were cut, affecting scholars, writers, research groups, and cultural organizations across the country

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ChatGPT's Role in Identifying DEI Content Draws Scrutiny

Judge McMahon sharply criticized the government's use of artificial intelligence to target projects for funding cuts. Officials deployed ChatGPT to classify grant projects as related to Diversity, Equity, and Inclusion (DEI), then canceled them based on that classification

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. In one striking example, the AI platform labeled an anthology titled "In the Shadow of the Holocaust: Short Fiction by Jewish Writers from the Soviet Union" as DEI content

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The judge rejected the government's argument that ChatGPT bore responsibility for any viewpoint classification, writing that "ChatGPT was the Government's chosen instrument for purposes of this project, and DOGE's use of AI to identify DEI-related material neither excuses presumptively unconstitutional conduct nor gives the Government carte blanche to engage in it"

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. This marks a significant legal precedent for government accountability when deploying AI tools for policy decisions.

Constitutional Violations and Unconstitutional Viewpoint Discrimination

McMahon's ruling identified the grant terminations as "a textbook example of unconstitutional viewpoint discrimination," finding that officials canceled funding based on recipients' perceived viewpoints in an effort to suppress disfavored ideas

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. The decision emphasized that while new administrations may pursue lawful funding priorities, they have "no license to suppress disfavored ideas."

The grant cancellations followed two executive order directives from the Trump administration: one titled "Ending Radical and Wasteful Government DEI Programs and Preferencing" issued in January 2025, and another implementing DOGE's "cost efficiency initiative" in February 2025

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. Michael McDonald, then acting chairman of the National Endowment for the Humanities, notified grant recipients in April 2025 that their funding was terminated to pursue "the President's agenda"

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Implications for Academic Freedom and AI Governance

Yinka Ezekiel Onayemi, an attorney for the Authors Guild, called the grant cancellations "a direct assault on constitutional free speech and equal protection," adding that the decision "reaffirms that Congress's 60 year old commitment to the humanities cannot be dismantled by an overreaching executive"

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. Sarah Weicksel, executive director of the American Historical Association, described the ruling as critical to restoring the NEH's mission of creating "a climate encouraging freedom of thought, imagination, and inquiry"

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The case raises urgent questions about how AI systems like ChatGPT should be deployed in government decision-making, particularly when constitutional rights are at stake. Scholars and legal experts will likely watch for whether the administration appeals and how future policies address the use of AI in evaluating federally funded research. The ruling also tests the boundaries of executive authority over congressionally appropriated funds, setting potential precedent for similar disputes across federal agencies.

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