Government Used ChatGPT to Cut Funding to North Carolina Central University

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A group of academic and literary organizations have filed a lawsuit against the National Endowment for the Humanities, alleging that the federal government improperly used the ChatGPT AI tool to assess diversity, equity, and inclusion (DEI) initiatives at North Carolina Central University, leading to the termination of a grant for a digital archive project.

Why it matters

This case raises concerns about the government's use of AI technology to make decisions about funding for higher education institutions, particularly historically Black colleges and universities (HBCUs) like North Carolina Central. The plaintiffs argue that using an AI system to evaluate DEI efforts violates constitutional protections for free speech and equal protection.

The details

According to court documents, the Department of Government Efficiency (DOGE) used ChatGPT prompts to assess whether certain programs at North Carolina Central were connected to diversity, equity, and inclusion before deciding to terminate funding. The plaintiffs argue that this use of an AI tool to influence decisions about congressionally approved grants was improper. The digital archive project at North Carolina Central had already spent most of the grant money before the funding was cut.

• In April 2025, the grant for the digital archive project at North Carolina Central University was terminated.
• The lawsuit was filed in March 2026 by four academic and literary organizations against the National Endowment for the Humanities.

What’s next

The judge in the case will decide whether the use of ChatGPT to assess diversity and inclusion initiatives at North Carolina Central University was unconstitutional.