The Market Analyzer
  • Business
  • Investing
  • Economy
  • Stock
Trending Now
FAA investigating close call involving United Airlines plane...
Judge blocks Trump administration from limiting Anthropic’s contracts...
Senate agrees to fund DHS, except ICE and...
Stocks rally, oil prices fall amid talk of...
Savannah Guthrie returning to ‘TODAY’ in April
Jury finds Meta and YouTube negligent in landmark...
Nasdaq moves into correction territory as Iran war...
Savannah Guthrie says family is ‘in agony’ in...
Delta suspends specialty services for members of Congress...
Senate Republicans believe they have a solution to...

The Market Analyzer

  • Business
  • Investing
  • Economy
  • Stock
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
FAA investigating close call involving United Airlines plane and Black Hawk helicopter in California

Related Posts

Travis Kelce part of investor group aiming to...

October 24, 2025

Columbia Sportswear sues Columbia University, alleging trademark infringement

August 5, 2025

Warner Bros. Discovery rejects Paramount’s amended takeover offer

January 11, 2026

Warner Bros. Discovery reopens talks with Paramount

February 19, 2026

Pentagon will remove media offices after judge reinstates...

March 27, 2026

Trump rejects off-ramp to fund DHS as airport...

March 27, 2026

Campbell’s fires executive accused of racist remarks and...

November 29, 2025

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

August 16, 2025

Jury finds Meta and YouTube negligent in landmark...

March 28, 2026

JPMorgan marks 1,000th branch opening since 2018 expansion...

August 2, 2025

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


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

    Recent Posts

    • FAA investigating close call involving United Airlines plane and Black Hawk helicopter in California
    • Judge blocks Trump administration from limiting Anthropic’s contracts with federal government
    • Senate agrees to fund DHS, except ICE and CBP, in bid to end extreme airport delays
    • Stocks rally, oil prices fall amid talk of Iran ceasefire
    • Savannah Guthrie returning to ‘TODAY’ in April

    Popular Posts

    • 1

      Environmental Approval for Boland Infield Studies & Update on Scaled Column ISR Test

      September 19, 2025
    • 2

      Bitcoin Rebounds to $83,404 Amid Renewed Investor Confidence

      April 21, 2025
    • 3

      Bitcoin Rebounds to $83,404 Amid Renewed Investor Confidence

      July 28, 2025
    • 4

      Elon Musk confirms Tesla has signed a $16.5 billion chip contract with Samsung Electronics

      July 29, 2025
    • 5

      Recall warns some Celsius energy drink cans accidentally contain alcohol

      July 31, 2025

    Categories

    • Business (149)
    • Economy (20)
    • Investing (1,612)
    • Stock (20)
    Footer Logo
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: themarketanalyzer.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 themarketanalyzer.com | All Rights Reserved