Judge Voids the Pentagon's 'Supply Chain Risk' Label on Anthropic, Calling It Unlawful Retaliation for Criticizing the Administration

U.S. District Judge Rita Lin in San Francisco on Aug. 27 permanently barred the administration from enforcing the measures cutting Anthropic off from the federal government. In a 59-page opinion she voided Defense Secretary Pete Hegseth's designation of the company as a "supply chain risk," his February directive that contractors cease "any commercial activity with Anthropic," and the agency cutoffs that followed Trump's post ordering an end to all federal use of Claude. Lin called the actions "unlawful retaliation against Anthropic for constitutionally protected expressive activities" and found they denied due process. The dispute began when Anthropic refused to drop contract limits barring use of Claude for mass surveillance or autonomous weapons.

The ruling tests how far a president may steer federal purchasing away from a critic. Lin wrote that "the empty invocation of national security is not a blank check to punish and retaliate against government critics," while noting her order does not compel the government to buy Anthropic's services.

The injunction is permanent; Lin wrote that the measures were "illegal and baseless." A parallel challenge argued before a D.C. Circuit panel in May remains undecided, and the administration has not said whether it will appeal.