Press Releases
Court orders reinstatement of all NEH grants terminated by DOGE, ruling that mass cancellation was unconstitutional
May 7, 2026
May 7, 2026—A New York federal court in a 143-page decision today held for the Authors Guild plaintiffs on every count in its case on behalf of individual writers and scholars against DOGE and the NEH for DOGE’s April 2025 mass cancellation at the National Endowment for the Humanities. It ordered the reinstatement of every grant terminated, delivering a complete victory to the Authors Guild and more than 1,400 writers, scholars, and researchers whose awards were abruptly eliminated.
Judge Colleen McMahon of the Southern District of New York granted summary judgment to the plaintiffs on all three of their claims, finding the terminations violated the First Amendment and the equal protection component of the Fifth Amendment and were carried out by DOGE without any statutory authority to act.
The court issued a permanent injunction enjoining the administration from giving effect to the mass terminations and requiring the government to rescind every termination notice and restore all affected grants and certified the Authors Guild’s lawsuit as a class action covering all approximately 1,400 affected grantees.
“Today’s ruling makes clear that no administration—regardless of its priorities—is free to defy the statutory purposes of federal agencies and that or to cancel grants based on viewpoint discrimination,” said Mary Rasenberger, CEO of the Authors Guild. “Not only did DOGE have no authority to cancel the grants, it used an AI chatbot to invent pretextual reasons to do it anyway. Writers and scholars had structured their lives around these awards—taking leaves of absence, giving up other income, making commitments—because the government had entered into a legally binding obligation. That obligation must be honored. We are gratified that justice was done, grateful to our amazing legal team at Fairmark Partners, and we will be watching closely to make sure every one of these grants is restored.”
In early April 2025, DOGE officials terminated more than 1,400 NEH grants awarded to scholars, writers, research institutions, and other humanities organizations totaling over $100 million in congressionally appropriated funds—the largest mass cancellation of previously awarded grants in the agency’s nearly 60-year history—with no individualized review, no notice, and no opportunity to appeal.
Discovery revealed that a DOGE official had used ChatGPT to generate “DEI rationales” for termination, submitting thousands of grant descriptions to the AI tool with a single standardized prompt, without defining the term or understanding how the tool interpreted it. They didn’t take any steps to ensure that the system wouldn’t discriminate on the basis of race, sex, or other protected categories. DOGE also searched for grants containing keywords like “gay,” “BIPOC” (Black, Indigenous, People of Color), “indigenous,” “tribal,” “melting pot,” “equality,” and similar terms. It did not search for analogous terms like “white,” “heterosexual,” or “Caucasian.”
The results were, in the court’s account, irrational: Studies of ancient Jewish texts, the persecution of Uyghurs in China, the plastics industry, and American women in Paris in the early 1900s were all flagged as DEI. The NEH’s own acting chair told DOGE many of the rationales “mischaracterized” the grants but was overruled. His own email to DOGE acknowledged: “Either way, as you’ve made clear, it’s your decision on whether to discontinue funding any of the projects.”
The result of this landmark ruling was actually two separate lawsuits that were quickly consolidated into one. On May 1, 2025, the Modern Language Association, the American Council of Learned Societies, and the American Historical Association filed the initial suit, ACLS v. McDonald, challenging DOGE’s mass terminations. Eleven days later, the Authors Guild filed its own suit, The Authors Guild v. NEH, in the Southern District of New York — structured as a class action on behalf of all approximately 1,400 affected grantees. On May 14, Judge Colleen McMahon consolidated the two cases, noting they were “substantially identical,” and the litigation proceeded jointly from there.
Because the Authors Guild’s suit was structured as a class action, Judge McMahon’s order applies not just to named plaintiffs but to all 1,400-plus writers, scholars, and researchers whose awards were canceled, making yesterday’s ruling a victory for everyone DOGE targeted.
On the central ultra vires question, Judge McMahon was unequivocal: “It is not that DOGE misconstrued a statutory provision conferring authority on it; it is that Congress conferred no authority on DOGE at all with respect to the awarding, continuation, or termination of NEH grants.”
On the ChatGPT-driven process, she wrote that it “would hardly be surprising if ChatGPT inferred, from DOGE’s repeated requests, that Fox and Cavanaugh were looking for reasons why grants could be characterized as DEI—and therefore terminable—and supplied ‘rationales’ simply in order to satisfy the user’s perceived demand. The utter lack of reasoning behind so many of its ‘rationales’ certainly suggests as much.”
“We are extremely pleased with Judge McMahon’s ruling reinstating the more than $100 million in NEH grants that were cancelled by DOGE last April.,” said Jamie Crooks, Managing Partner of Fairmark Partners, LLP “While we are still evaluating her detailed, 143-page opinion, the bottom line is clear: Judge McMahon agreed with the Authors Guild and the other plaintiffs that these ‘DEI’-based cancellations violated the First Amendment and Equal Protection, and that DOGE did not have the authority to order these grants terminated. The Court’s order that the grants be reinstated will allow our clients and the hundreds of other scholars and institutions in the class to continue performing their important scholarly work, and it’s also a vindication for the rule of law and basic principles of constitutional law.”
NEH award recipient Bill Goldstein said, “I am—and all of the plaintiffs will be— forever grateful for your brilliant, tireless, and effective work on our behalf. And on behalf of the First Amendment and what remains and must endure of the rule of law. The stakes are that high, and you made our rights and that right clear. Congratulations on your victory, and thank you for ours.”
Given that the administration has ignored other judicial orders, including the preliminary injunction in this case, we cannot say whether NEH will in fact reinstate the grants and pay out the money owed under those grants. The court emphasized that its decision addresses only “the legality of the Government’s decision to terminate” the grants and that it is requiring the government to “rescind the termination notices,” but clarified that it does not “require[] the immediate payment of grant funds” or “adjudicate[] any contractual entitlement to money.” The reason for that it that claims seeking payment of money owed by the federal government must be brought in a separate court—the Court of Federal Claims. Here, Judge McMahon noted that securing payment of the grant funds “might well require a separate suit in the Court of Federal Claims”—though she did not outline a specific process. For now, we are reviewing the decision with our attorneys to determine next steps, including any possible action in the Court of Federal Claims. As always, our goal is to ensure that grantees receive the payments they are owed as promptly as possible.
