D.C. Circuit upholds Pentagon designation of Anthropic as a supply chain risk (2–1)
On September 25, 2026 the D.C. Circuit ruled 2–1 that the Pentagon may keep Anthropic designated as a supply chain risk under a parallel legal authority (FASCSA). This lets the department remove Claude from its systems. Judge Karen LeCraft Henderson dissented, and Anthropic said it is weighing further review.
Key facts
- Decision Sept 25, 2026, U.S. Court of Appeals for the D.C. Circuit, 2–1
- Majority: Claude's built-in restrictions and the unresolved contract dispute could make it unreliable for military operations; rejected free-speech and due-process claims
- Dissent (Henderson): the law does not treat 'a contractor's honest and upfront enforcement of restrictions' as a supply-chain risk
- Anthropic noted that another federal court had held the parallel designation unlawful (Aug 27)
What happened
The ruling concerns a separate designation under a different statute from the one Judge Lin struck down in August, so two federal courts have now reached opposite outcomes on the government's actions.
Why it matters
It suggests the US military can exclude AI vendors whose usage policies restrict military applications. That has direct consequences for how labs write their acceptable-use policies.
Changelog
- 2026-09-29: created
- 2026-09-29: added post link(s) (1) from Anthropic posts cluster
Related posts (3)
- Hegseth: "Confirmed: @AnthropicAI = Supply Chain Risk" Pete Hegseth @PeteHegseth · x · 2026-09-25
The Secretary of War's public victory post after the D.C. Circuit upheld the Pentagon's designation of Anthropic. - Statement on the comments from Secretary of War Pete Hegseth Anthropic @AnthropicAI · blog · 2026-02-27
Anthropic's same-day response to the supply-chain-risk designation, promising a court challenge that later produced conflicting rulings in August and September 2026. - Statement from Dario Amodei on our discussions with the Department of War Dario Amodei (Anthropic) @AnthropicAI · blog · 2026-02-26
Anthropic's refusal to drop its bans on mass domestic surveillance and fully autonomous weapons, which led directly to the Pentagon's supply-chain-risk designation.
Related events
- Judge rules Pentagon "supply chain risk" label on Anthropic unlawful retaliation ★★★
- Pentagon designates Anthropic a "supply chain risk" after it refuses surveillance and autonomous-weapons uses ★★★★
Sources (5)
- pressCNBC: Appeals court upholds Pentagon designation of Anthropic
- pressABC News: Federal appeals court upholds designation
- pressTech Times: Pentagon can blacklist AI ethics policies under FASCSA
- docsD.C. Circuit opinion (CourtListener)
- discussionPete Hegseth on X: 'Confirmed: @AnthropicAI = Supply Chain Risk'
id: 2026-09-25-appeals-court-upholds-pentagon-anthropic-designation · updated 2026-09-29 · open in the interactive timeline