Blacklisting Anthropic: a presidential order a court found was retaliation for speech

Judge Rita Lin (N.D. Cal.) granted Anthropic summary judgment on its First Amendment, due process and APA claims, finding "unlawful retaliation" and that the company did not meet the statutory definition of a supply-chain risk; the government prevailed on the separation-of-powers claim and on claims against agencies that took no relevant action

Anthropic and the Defense Department negotiated for months over the military's demand to use the company's Claude models for "all lawful uses." Anthropic refused to drop two restrictions, on mass surveillance of Americans and lethal autonomous weapons, and said so publicly. At 3:47 p.m. on February 27, 2026, Trump posted: "I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic's technology," warning of "major civil and criminal consequences." About an hour later Hegseth ordered the company designated a supply-chain risk and declared that no military contractor "may conduct any commercial activity with Anthropic."

Agencies from the GSA to the Treasury began removing Anthropic's products. The formal designation followed on March 3, supported by a four-page memorandum.

On August 27, 2026, ruling on the administrative record, Judge Lin wrote that the government's "contemporaneous words and deeds confirm that the challenged actions were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government." She found the claimed sabotage risk unfounded, noting that the government had continued to seek a contract and to discuss collaboration on Anthropic's newer models. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote.

Documented

Court held the actions unconstitutional and unlawful; appeal possible

Presidential and Hegseth directives 2026-02-27; supply-chain designation 2026-03-03; suit filed 2026-03-09; preliminary injunction 2026-03-26; summary judgment 2026-08-27