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DOGE Cancels $349,000 Museum Grant After ChatGPT Flags It as DEI

Trump administration's DEI cuts impact museum HVAC project funding.

Fortune | FORTUNE2 min

1DEI Funding Cuts

The Trump administration's Department of Government Efficiency (DOGE) canceled over $100 million in grants from the National Endowment for the Humanities (NEH), targeting projects related to diversity, equity, and inclusion (DEI). This decision was based on ChatGPT analyses, which flagged proposals as DEI-related. The cuts significantly impacted NEH's annual budget, reducing it by nearly half.

2ChatGPT's Role

DOGE employees Justin Fox and Nate Cavanaugh used ChatGPT to evaluate grant proposals for DEI content. They asked ChatGPT to respond with 'Yes' or 'No' followed by a brief explanation. Among the flagged proposals was a $349,000 grant for the High Point Museum to replace its HVAC system, which ChatGPT deemed DEI-related due to its potential to enhance access to diverse audiences.

3High Point Museum Grant

The High Point Museum in North Carolina requested $349,000 to replace its aging HVAC system, aiming to improve preservation conditions for its collections. Despite receiving the grant and starting the project, DOGE terminated it based on ChatGPT's DEI classification. The museum managed to recover 70% of the grant through a termination clause.

4Broader DEI Cuts

DOGE's cuts extended beyond HVAC projects, targeting various initiatives deemed DEI-related. This included grants for literary agents, AI ethics research, and Italian-American immigrant history. The Trump administration's broader policy aimed to eliminate funding for projects promoting what it called 'improper ideology' and 'divisive narratives.'

5NEH Chairman's Perspective

Michael McDonald, acting chairman of the NEH, indicated that many canceled grants had little to do with DEI. In an email, he noted that some projects were 'harmless' regarding DEI promotion but were still cut to assist deficit reduction. However, DOGE's efforts reportedly failed to significantly impact the federal deficit.

6Legal Challenges

Several organizations, including the American Council of Learned Societies and the American Historical Association, filed a joint motion arguing that DOGE's cuts violated First Amendment rights and the Constitution's equal protection clause. They claimed that canceling grants based on DEI constituted discrimination on race, ethnicity, and gender.

7Elon Musk's Involvement

Tesla CEO Elon Musk, DOGE's de-facto leader, was tasked with identifying and canceling contracts worth billions of dollars. Musk claimed the cuts amounted to $200 billion, including $101 million in DEI training grants through the Department of Education. Musk left DOGE in May 2025 after a 130-day stint.

8Impact on Cultural Institutions

DOGE's funding cuts had a significant impact on cultural institutions, with many projects unrelated to DEI being canceled. The Shelburne Museum in Vermont, for example, saw its grant for climate-resilient infrastructure flagged as DEI. These cuts highlight the broader implications of using AI tools like ChatGPT in policy decisions.

Original article: Fortune | FORTUNE — DOGE Cancels $349,000 Museum Grant After ChatGPT Flags It as DEI