Trump Administration Appeals Ruling That Protected Anthropic from Pentagon

The Trump administration has filed an appeal against the federal judge ruling that temporarily blocked the Pentagon from labeling AI company Anthropic a supply chain risk and banning federal agencies from using its technology.

The dispute stems from collapsed contract negotiations in which Anthropic refused to allow its AI to be used for autonomous weapons or mass domestic surveillance. In response, Defense Secretary Pete Hegseth designated Anthropic a supply chain risk, a designation previously reserved for foreign adversaries.

On March 25, U.S. District Judge Rita Lin in San Francisco halted the measures. She described the actions as arbitrary and capricious and potentially Orwellian, stating there was no legal basis to brand an American company a potential adversary simply for disagreeing with government policy.

The Department of Justice filed its notice of appeal on April 2. The government has until April 30 to submit its formal arguments to the Ninth Circuit Court of Appeals.

The case sets a precedent for whether the government can use supply chain risk mechanisms against domestic AI companies that refuse to provide military capabilities. The outcome will affect Claude availability across the U.S. public sector.