The Department of Health and Human Services (HHS) is currently utilizing sophisticated artificial intelligence software from Palantir and startup Credal AI to systematically identify and remove references to Diversity, Equity, and Inclusion (DEI) and “gender ideology” from federal grants. This automated auditing process, centered within the Administration for Children and Families (ACF), marks a significant shift in how federal child welfare and adoption systems are managed, ensuring all job descriptions and funding applications align with new executive mandates.
The Automation of Ideological Audits
During the inaugural year of the second Trump administration, Palantir secured over $35 million in payments and obligations from HHS. While public transaction records omit specific mentions of DEI targeting, internal operations reveal that Palantir is the primary contractor tasked with generating lists of position descriptions requiring adjustment. This initiative ensures that federal roles and funding structures mirror the language and priorities established by recent executive orders.
Working alongside Palantir is Credal AI, a startup founded by Palantir alumni. Credal AI received approximately $750,000 to implement its “Tech Enterprise Generative Artificial Intelligence (GenAI) Platform” within the ACF. This AI-driven grant review system scrutinizes submission files, generating initial flags and priorities for human review. These “deployed” use cases allow ACF staffers to finalize the removal of any flagged content from job descriptions and grant applications before they are approved.
Enforcing Executive Orders 14151 and 14168
The AI-led purge is a direct response to two executive orders issued on the administration’s first day. Executive Order 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” mandates the termination of any policies, contracts, or grants mentioning “equity,” “environmental justice,” or DEIA. This order is enforced through a coordinated effort involving the Office of Management and Budget and the Office of Personnel Management.
Simultaneously, Executive Order 14168, “Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government,” restricts federal funding from promoting “gender ideology.” The order defines sex as an “immutable biological classification” and limits gender recognition to “male” and “female.” Consequently, agencies must now ensure that grant funds do not support concepts the administration deems “disconnected from biological reality.”
Widespread Disruptions in Federal Research and Services
The impact of these automated audits has reverberated across the federal landscape. The National Science Foundation (NSF) and the National Institutes of Health (NIH) saw nearly $3 billion in grant funds frozen or terminated by the end of the year. Research containing terms like “inclusion,” “systemic,” or “underrepresented” was placed under official review, while the Centers for Disease Control and Prevention (CDC) halted data processing related to transgender individuals.
Agency-Specific Impact:
- NASA: Removed all mentions of LGBTQ+ individuals, indigenous people, and women from its official website.
- SAMHSA: Terminated an LGBTQ youth service line previously offered by the 988 Suicide & Crisis Lifeline.
- HUD: Ceased enforcement of provisions banning discrimination based on gender identity.
- Department of Veterans Affairs: Removed internal guidelines that prohibited doctors from discriminating based on political beliefs or marital status.
The private sector has also reacted to these shifts. Over 1,000 nonprofit organizations revised their mission statements to eliminate DEI-related language, fearing the loss of federal eligibility. Notable organizations, including the National Center for Missing and Exploited Children, removed mentions of transgender individuals from public materials despite the group’s heightened vulnerability to abuse.
Palantir’s Growing Role in Federal Enforcement
Palantir’s financial success has accelerated under the current administration, with net payments exceeding $1 billion in the first year alone. While its work for HHS remains a focal point, the company has also expanded its footprint within Immigration and Customs Enforcement (ICE). Palantir received $81 million from ICE this year, a sharp increase from $20.4 million the previous year.
A significant portion of this funding supports the development of the “Enhanced Leads Identification & Targeting for Enforcement” (ELITE) app. This tool aggregates data from HHS and other sources to create detailed dossiers on suspects, featuring a mapping interface that provides confidence scores for tracking individuals within specific perimeters. Additionally, ICE utilizes Palantir’s “FALCON” and “Investigative Case Management” (ICM) systems to maintain real-time visibility on self-deportations and prioritize enforcement targets, specifically focusing on visa overstays.
This expansion comes amid internal scrutiny. Discussions among employees have surfaced regarding the company’s transparency and its role in “Operation Metro Surge,” a Department of Homeland Security initiative that recently resulted in a fatal shooting during enforcement operations in Minneapolis. Despite these internal debates, Palantir’s leadership continues to defend its critical role in automating federal policy enforcement.
