HHS Uses Palantir's AI for DEI and Gender Ideology Monitoring

AI-Powered Federal Grant Auditing

The U.S. Department of Health and Human Services (HHS) has been using artificial intelligence tools from Palantir since March to scan federal grants, grant applications, and job descriptions. The stated purpose of this scanning is to audit compliance with executive orders issued by President Donald Trump targeting 'gender ideology' and issues related to diversity, equity, and inclusion (DEI). This information was obtained from an inventory listing all of HHS's AI use cases for 2025.

Operation and Contracts

The audits are conducted by the Administration for Children and Families (ACF) within HHS. Palantir is the sole contractor tasked with preparing a list of 'position descriptions that may need to be adjusted for compliance with recent executive orders.' The startup Credal AI, founded by Palantir alumni, is also assisting in auditing existing and new grant applications. According to the inventory, the AI-based process reviews application files to make initial flags and set priorities. All information is then forwarded to the ACF Program Office for final review.

It is recorded that HHS has paid and committed over $35 million to Palantir for this work alone. Approximately $750,000 was paid to Credal AI, although federal payment records reportedly do not mention DEI or 'gender ideology' in their descriptions. HHS, ACF, Palantir, and Credal AI did not respond to requests for comment on the matter.

Scope and Impact of the Executive Orders

The relevant executive orders were issued on the first day of Trump's inauguration last year. The orders demand the termination of any policy, program, contract, or grant related to DEI or 'environmental justice.' They also mandate that, within the framework of federal laws and policies, 'sex' be defined as 'an immutable biological classification' and that only two sexes, 'male' and 'female,' be recognized. 'Gender ideology' is described as 'false' and 'detached from biological reality,' and it is stipulated that federal funds cannot be used to promote this ideology.

The effects of these orders are being felt nationwide. The National Science Foundation has begun flagging research containing terms associated with DEI, while the Centers for Disease Control and Prevention have withdrawn or paused research containing LGBT+ terms. It has been reported that nearly $3 billion in grant funding has been frozen or terminated at the National Institutes of Health and NSF. Agencies like NASA have been noted to have removed references to women, indigenous peoples, or LGBT+ individuals from their websites.

Palantir's Rising Role

Palantir has significantly increased its business volume with the federal government during Trump's second term. The company reported higher revenue in the mission's first year compared to the previous year. Among its largest federal clients are the U.S. Army and Air Force. The company's work with Immigration and Customs Enforcement (ICE) is also notable. Under contracts with ICE, systems are being developed to analyze immigrant data and create target profiles. The use and ethical boundaries of such AI applications remain at the center of technology and privacy debates.

While Palantir management defends its work with ICE, it has been reported that some employees have raised questions on internal company platforms about the transparency of these collaborations.