Lawsuit Claims AI Tool Led to Cancellation of Museum HVAC Grant

A federal lawsuit alleges that the Department of Government Efficiency (DOGE), established in January 2025, used ChatGPT to identify and cancel grants related to diversity, equity, and inclusion programs. The High Point Museum in North Carolina lost a $349,000 National Endowment for the Humanities grant for HVAC system upgrades after the AI flagged it as DEI-related, arguing improved climate control would increase access to diverse audiences. The American Council of Learned Societies and the American Historical Association filed the lawsuit, challenging broader humanities grant cancellations and arguing the process violated the First Amendment by replacing expert review with AI analysis. Other affected grants included a project from North Carolina Central University. The museum recovered about 70% of the funds through a termination clause.