Judge rules DOGE used ChatGPT in a way that was both dumb and illegal

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FollowSee All LawJudge rules DOGE used ChatGPT in a way that was both dumb and illegalThe ruling restores federal grants that were shut down for ‘DEI’ prejudice. The ruling restores federal grants that were shut down for ‘DEI’ prejudice. by Emma Roth Emma RothNews WriterPosts from this author will be added to your daily email digest and your homepage feed.

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FollowSee All by Emma RothMay 8, 2026, 6:02 PM UTC Image: Cath Virginia / The Verge Emma Roth Emma RothPosts from this author will be added to your daily email digest and your homepage feed. FollowSee All by Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.

The Department of Government Efficiency’s cancellation of over $100 million in grants was unconstitutional, according to a ruling on Thursday. In the 143-page decision, US District Judge Colleen McMahon cites DOGE’s process for eliminating grants, which involved using ChatGPT to determine if something is related to diversity, equity, and inclusion (DEI). The ruling, which stems from a 2025 lawsuit filed by humanities groups, says “it could not be more obvious that DOGE used the mere presence of particular, protected characteristics to disqualify grants from continued funding” from the National Endowment for the Humanities (NEH).

Judge McMahon cites several instances in which DOGE appeared to use ChatGPT to scan and eliminate grants using their relation to characteristics like race, national origin, religion, and sexuality. The filing mentions testimony from Justin Fox, a DOGE staffer who worked with his colleague Nate Cavanaugh to eliminate 97 percent of grants under the NEH, in part by relying on ChatGPT’s understanding of DEI:Fox testified that he used ChatGPT “o highlight why grant may relate to DEI” and “to pull out anything related to DEI. ” To do so, he submitted each cursory grant description from the NEH spreadsheet to ChatGPT using a standardized prompt: “Does the following relate at all to DEI?

Respond factually in less than 120 characters. ’ followed by a brief explanation. ” Fox testified that he did not define “DEI” for ChatGPT and that he did not have the slightest idea how ChatGPT understood the term.

This advance offers important signals about the future of the sector, and the tech world is watching closely.