Anthropic v. Dept. of War — D.C. Circuit upholds supply-chain-risk designation (2026)

Anthropic PBC v. Department of War (D.C. Cir.) — Appeals Court Rules 2-1 That the Pentagon Can Designate Anthropic a 'Supply Chain Risk' Under the Federal Acquisition Supply Chain Security Act (September 2026)
United States · Anthropic PBC v. U.S. Department of War (D.C. Cir. Sept. 25, 2026)

Status
Blocked / in litigation
Applies to
U.S. Department of Defense; Anthropic; defense contractors (barred from using Anthropic products for DoD work)
Enforced by
U.S. Court of Appeals for the D.C. Circuit

On September 25, 2026, the U.S. Court of Appeals for the D.C. Circuit ruled 2-1 that the Defense Department could label AI company Anthropic a 'supply chain risk,' letting the Pentagon remove Anthropic's Claude models from its systems and bar their use for Defense Department work. Judge Gregory Katsas, joined by Judge Neomi Rao, wrote that the department reasonably feared Anthropic might design Claude to refuse national-security tasks; Judge Karen LeCraft Henderson dissented, arguing the 2018 supply-chain law was aimed at sabotage by foreign powers. The ruling is separate from, and points the other way from, a California federal court decision that found the Pentagon unlawfully retaliated against Anthropic. Anthropic said it disagrees and is considering further review.

Who is protected: Not applicable (government contracting / national-security designation dispute)

Legal detail

U.S. Court of Appeals for the D.C. Circuit, ruling Friday 2026-09-25 on Anthropic's petitions challenging the Defense Department ('Department of War') designation of Anthropic as a supply chain risk under the Federal Acquisition Supply Chain Security Act of 2018 (FASCSA). PANEL: Katsas (opinion), Rao (joined); Henderson (dissent). HOLDING: petitions denied; the department had statutory authority and 'ample support' for its national-security conclusion; majority: 'the definition of a supply chain risk ... hinges on what Anthropic does, not why Anthropic does it'; 'The Department reasonably feared that Anthropic might manipulate Claude's design to prevent it from performing national-security functions that the Department deems contractually authorized and necessary.' DISSENT: FASCSA was 'explicitly passed to protect against sabotage by malignant foreign powers.' BACKGROUND (AP): designation made in February 2026 by President Trump and Defense Secretary Pete Hegseth after Anthropic refused to permit use for mass surveillance or autonomous armed drones. RELATED: separate N.D. Cal. case (Judge Rita Lin, per Breaking Defense) found unlawful First Amendment retaliation — indexed as Anthropic v. DOD First Amendment retaliation ruling (2026). NEXT: possible en banc petition or certiorari. NOT ESTABLISHED: D.C. Circuit docket number; petition filing date.

Key facts

JurisdictionUnited States
LevelFederal
CitationAnthropic PBC v. U.S. Department of War (D.C. Cir. Sept. 25, 2026)
Private right of actionNo, agency enforcement only
PenaltiesNot applicable
Topicsnational security · government use of AI
News reportDC Circuit panel upholds Pentagon's ban on Anthropic. So what comes next? — Breaking Defense

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