DOGE Canceled $349K Grant to Replace Museum's HVAC Because ChatGPT Flagged It as 'DEI,' Court Documents Say

The Elon Musk-fronted Department of Government Efficiency is under scrutiny after a recently filed lawsuit revealed some of the government funding that was cut, while allegedly aiming to target "diversity, equity and inclusion" (DEI) programs.

Filed on March 6 by the American Council of Learned Societies, the American Historical Association, the Modern Language Association and the Authors Guild, the lawsuit accused former DOGE employees Justin Fox and Nathan Cavanaugh of violating First Amendment rights and the equal protection clause in the Constitution while making cuts to funding distributed by the National Endowment for the Humanities.

Per a motion, Fox and Cavanaugh allegedly utilized ChatGPT to scan the grants managed by the National Endowment for the Humanities. In the process, they eliminated more than $100 million in funds.

One of the grants they appeared to target was a $349,000 grant for a new heating, ventilation and air conditioning system for the High Point Museum, which was flagged as being a DEI program. The North Carolina museum's mission is "sharing greater High Point’s history, providing perspective for current issues, and strengthening our community," according to its website.

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A table included with the motion revealed the process that DOGE used to determine what programs to cut.

Fox and Cavanaugh reportedly entered the following command: "Does the following relate at all to DEI? Respond factually in less than 120 characters. Begin with 'Yes.' or 'No.' followed by a brief explanation. Do not use 'this initiative' or 'this description' in your response."

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The grant for High Point noted that the new HVAC system was meant to "create a better preservation environment for the varied collections" inside the museum.

It mentions previous testing that the building underwent to determine if the existing HVAC system was sufficient, writing, "New equipment will ensure greater flexibility in responding to outside conditions, will improve efficiency and will further the Museum's goal of providing greater access to its collections and ensuring their long-term viability."

The AI's response: "Yes. Improving HVAC systems enhances preservation conditions to collections aligning with the goal of providing greater access to diverse audiences. #DEI."

Contacted by PEOPLE, Edith Brady, the director of High Point Museum, confirmed that the grant was discontinued.

"We began the project, and it was later terminated," Brady said, adding, "We were able to recoup about 70% of the original award through the grant termination clause, and we were able to complete the project with other funds."

PEOPLE reached out to the White House and the National Endowment for the Humanities for comment, but did not hear back at the time of publication.

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A recently released video of Fox testifying in a deposition for the lawsuit showed that he seemingly struggled to define DEI, which President Donald Trump targeted in a 2025 executive order titled "Ending Radical And Wasteful Government DEI Programs And Preferencing."

"The details, I don't remember it off the top of my head," Fox said when asked to define DEI. He continued, saying, "Yeah, my understanding was exactly what was written in the EO."

Fox added, "Any time that we would look at a grant through the lens of complying with an executive order, we would just refer back to the EO and assess if this grant had relation to it."

Though Musk and Trump grew close during the 2024 election, leading to the tech billionaire's appointment to the government agency, their relationship soured in 2025.

During a December 2025 appearance on former DOGE spokeswoman Katie Miller's podcast, Musk opined that the program was "just a little bit successful" and alleged that he wouldn't be interested in taking on a similar government project in the future.

"We were somewhat successful. We stopped a lot of funding that really just made no sense, that was entirely wasteful," he told Katie, the wife of Stephen Miller, Trump's deputy chief of staff.

Musk announced that he was resigning from his role within DOGE in May 2025. The program quietly ended ahead of schedule that November, despite originally aiming to run through July 2026.