Capital Growth Model
  • Investing
  • Stocks
  • World
  • Business
  • Investing
  • Stocks
  • World
  • Business

Capital Growth Model

Business

Judge blocks Trump administration from limiting Anthropic’s contracts with federal government

by admin March 29, 2026
March 29, 2026
Judge blocks Trump administration from limiting Anthropic’s contracts with federal government

A federal judge in California has blocked the Trump administration from designating Anthropic as a supply chain risk to national security and cutting off the AI company’s work with federal agencies.

Anthropic sued the Defense Department and other federal agencies this month after the Pentagon labeled it a “supply-chain risk to national security.” President Donald Trump said he would also ban the use of Anthropic’s products across other federal agencies.

“Defendants’ designation of Anthropic as a ‘supply chain risk’ is likely both contrary to law and arbitrary and capricious,” U.S. District Judge Rita Lin of Northern California wrote in her order Thursday night. “The Department of War provides no legitimate basis to infer from Anthropic’s forthright insistence on usage restrictions that it might become a saboteur.”

Lin paused her order for a week to allow the administration time to appeal.

The Defense Department and the White House did not immediately respond to a request for comment Thursday evening.

“We’re grateful to the court for moving swiftly, and pleased they agree Anthropic is likely to succeed on the merits,” an Anthropic spokesperson said in a statement Thursday. “While this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI.”

The supply chain risk designation requires the Pentagon and its contractors to stop using Anthropic’s commercial AI services for all defense business.

Defense Secretary Pete Hegseth said on X in late February that he was issuing a directive to give the company the “supply chain risk” label. Trump also said he was ordering all federal agencies, including the Treasury and State departments, to cease using Anthropic’s AI technology.

“The record reflects that the Challenged Actions were taken without any meaningful notice or pre-deprivation process (and, in the case of the Presidential Directive and the Hegseth Directive, without any post-deprivation process either),” Lin wrote in her order.

The order Thursday also bars other agencies from cutting off their work with Anthropic. Lin wrote that the order restores the status quo.

“This Order does not require the Department of War to use Anthropic’s products or services and does not prevent the Department of War from transitioning to other artificial intelligence providers, so long as those actions are consistent with applicable regulations, statutes, and constitutional provisions,” the order said.

Anthropic filed two lawsuits against the Defense Department — one in U.S. District Court for Northern California and the other in U.S. Circuit Court of Appeals for Washington, D.C. — alleging that the federal government’s moves go beyond a normal contract dispute and instead are an “unlawful campaign of retaliation” that followed months of heated negotiations about how the military should be able to use Anthropic’s AI systems.

Anthropic had sought stronger guarantees that the Pentagon would not use its AI systems for autonomous weapons or mass domestic surveillance.

Anthropic is the creator of the Claude chatbot system and the only AI company whose services were cleared for use on the Defense Department’s classified networks.

Hours after Hegseth’s announcement last month, OpenAI CEO Sam Altman said his company had reached an agreement with the Pentagon to use its services in classified settings.

Lin wrote: “Although Anthropic was on notice that the government objected to its contracting terms, it had no notice or opportunity to object before Defendants publicly barred it from all federal government work and blacklisted it with private companies working with the U.S. military. It also had no notice or opportunity to object to the factual basis for its designation as a supply chain risk, which it learned of in this litigation.”

previous post
Senate agrees to fund DHS, except ICE and CBP, in bid to end extreme airport delays
next post
Markets plunge and U.S. oil hits $100 as Trump’s ability to reassure Wall Street hits its limit

Related Posts

Kenvue stock drops 10% on report RFK Jr....

September 8, 2025

Prada Group says it has purchased fashion rival...

December 4, 2025

Lyft co-founders to step down from ride-hailing firm’s...

August 16, 2025

Body found in Colombia amid search for missing...

April 1, 2026

Trump accused Fed Governor Lisa Cook of mortgage...

August 29, 2025

All major Las Vegas Strip casinos are now...

August 5, 2025

Amazon cracks down on Prime free shipping sharing

September 4, 2025

Ontario cancels internet deal with Musk’s Starlink as...

August 1, 2025

Markets plunge and U.S. oil hits $100 as...

March 30, 2026

Microsoft’s Satya Nadella says job cuts have been...

July 30, 2025

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Body found in Colombia amid search for missing U.S. flight attendant

      April 1, 2026
    • Trump says his ‘preference’ would be to ‘take the oil in Iran’

      April 1, 2026
    • House Republicans pass DHS funding bill that Democrats call ‘dead on arrival’ in the Senate

      March 31, 2026
    • God and bitcoin: Why some Christians are going all in on cryptocurrency

      March 31, 2026
    • When will TSA lines go back to normal? Travelers may face delays for days or weeks

      March 31, 2026
    • Insider trading concerns around oil and military moves are on the rise. Can anyone police the bets?

      March 30, 2026

    Categories

    • Business (152)
    • Investing (1,590)
    • Stocks (10)
    • World (10)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2026 CapitalGrowthModel.com | All Rights Reserved