Federal Agencies’ AI Surveillance and Compliance Under New Executive Mandates

AI-Driven Oversight of DEI and Gender Ideology Policies in Government

Beginning in early 2025, teh Department of Health and Human Services (HHS) integrated advanced artificial intelligence systems developed by Palantir to meticulously analyze grant proposals, awarded grants, and job postings. This AI application is designed to detect language or content that may conflict with recent executive orders restricting diversity, equity, inclusion (DEI) initiatives and gender ideology references.

This initiative was implemented without public announcement from either HHS or Palantir. Over the course of 2025 alone, Palantir secured contracts exceeding $35 million from HHS; however, none explicitly disclose work related to enforcing compliance with DEI or gender ideology restrictions.

targeted Audits Within Child Welfare Programs

The primary focus for these AI audits lies within the Administration for Children and Families (ACF), a division responsible for foster care, adoption services, and other child welfare programs. Palantir holds exclusive duty for reviewing job descriptions to ensure alignment with newly imposed federal mandates.

In addition to Palantir’s role, Credal AI-a startup founded by former employees of Palantir-provides supplementary support by scanning both existing grants and new applications. Their generative AI platform flags possibly noncompliant language or themes which are then subject to human review by ACF personnel before final decisions are made.

Financial Commitments Toward AI Grant analysis Tools

The ACF allocated approximately $750,000 in 2025 alone toward Credal AI’s enterprise-grade generative artificial intelligence platform tailored specifically for grant evaluation purposes. Despite this considerable expenditure, official documentation does not explicitly mention enforcement related to DEI policies or gender ideology compliance.

The Influence of Recent executive Orders on Federal Operations

Two significant executive orders issued on January 20th have dramatically altered how federal agencies operate:

• Executive Order 14151: Directs all government bodies to terminate any programs referencing DEIA/DEI concepts such as “equity” or “environmental justice.” The Office of Management & Budget (OMB) is tasked with ensuring these prohibitions are enforced across departments.
• Executive Order 14168: Mandates that all sex-based legal interpretations adhere strictly to biological definitions limited exclusively to male/female categories while dismissing gender identity as biologically unfounded. It also forbids federal funding from supporting any promotion associated with “gender ideology.”

Aggressive Policy Enforcement Across Multiple Agencies

The ripple effects have been extensive: research projects mentioning terms like “female,” “inclusion,” or even broad descriptors such as “underrepresented” have undergone intense scrutiny at institutions including the National Science Foundation (NSF). The Centers for Disease Control halted studies involving LGBTQ+ populations entirely while suspending data collection related specifically to transgender individuals.

Dramatic Budget Reductions and Workforce Restructuring in Federal Entities

Toward late 2025 nearly $3 billion worth of grants were frozen or canceled across major agencies like NSF and NIH due directly to these policy changes. Simultaneously, numerous departments-including the Department of Education-conducted layoffs affecting hundreds of employees regardless of their direct involvement in DEI-related roles as part of broader efforts aimed at eliminating perceived ideological influences within government ranks.

• the internal Revenue Service reassigned staff away from conventional duties toward eradicating references linked with diversity initiatives.
• The National aeronautics & Space Administration removed LGBTQ+ symbols along with mentions highlighting women’s contributions from its publicly accessible materials.

Bans Impacting Transgender Individuals Within Federally Funded Programs

Affected populations include transgender individuals who faced systematic exclusion from federally supported programs: FAFSA applicants lost the ability to self-identify outside binary genders; discrimination claims based on nonbinary status were dismissed at agencies such as EEOC; HUD ceased enforcement actions against discrimination tied to gender identity; Veterans Affairs revised internal policies removing protections against bias connected partly back to these executive directives.

Civil Society’s Response amidst Shifting Federal Guidelines

An estimated one thousand nonprofit organizations revised their mission statements last year removing any language remotely associated with DEI principles-likely driven by concerns over jeopardizing access to federal funding streams. Several advocacy groups serving vulnerable communities eliminated references acknowledging transgender individuals despite clear evidence showing they face disproportionately high risks-for instance sexual abuse victims among transgender populations remain statistically more vulnerable yet erased from public messaging by organizations similar in scope but distinct from RAINN’s approach.

An expanding Role: Palantir’s Involvement in Controversial Federal Projects

Sustained Growth Through Government Contracts During Trump Administration Resurgence

Palantir Technologies experienced remarkable financial growth during President Trump’s second term starting January 2025: net payments surpassed $1 billion compared with roughly $808 million during the previous year. While military branches-the U.S Army ($408 million) and air Force ($148 million)-remained top clients recently,a significant share originated from law enforcement contracts including Immigration & Customs Enforcement (ICE).

An Intensifying Partnership With ICE For Surveillance And Deportation Technologies

Diving deeper into immigration enforcement reveals that after Trump’s re-inauguration,Palantir earned approximately $81 million working directly alongside ICE-a fourfold increase compared against about $20 million annually prior this period.

• A contract expansion valued at an additional $30 million was awarded in April focused on developing software enabling near real-time tracking capabilities targeting primarily voluntary self-deportees but prioritizing visa overstays according official justifications.
• This builds upon an earlier contract worth around $17 million dedicated maintaining Investigative Case Management System (ICM), a customized version derived from Gotham-the company’s flagship law enforcement product widely used across police departments nationwide.
• Beyond ICM maintenance,Palantir supports FALCON Search & Analysis System which aggregates diverse data streams-including tips submitted via public hotlines-and makes them searchable through advanced analytics tools utilized operationally within ICE investigations.
  
• An additional system called ELITE (“Enhanced Leads Identification & Targeting for Enforcement”) integrates internal HHS facts alongside other databases creating detailed profiles about potential targets complete with geospatial mapping features allowing agents precise perimeter definition plus confidence scoring regarding suspect presence inside designated zones.

“The ELITE application empowers agents through predictive analytics combined with comprehensive datasets enabling targeted operations based upon algorithmically generated risk assessments.”

Tensions Inside Palantir Over Ethical Concerns Related To ICE Collaborations

Despite leadership consistently defending contractual obligations fulfilled responsibly,internal debates emerged among employees questioning whether greater clarity should be demanded concerning partnerships involving controversial immigration enforcement activities following incidents such as Minneapolis nurse Alex Pretti’s fatal shooting amid joint Border Patrol-ICE deployments known as ‘Operation Metro Surge.’