D.C. Circuit permits Pentagon restrictions on Anthropic

On September 25, the Washington Post reported that a divided D.C. Circuit panel upheld the Pentagon’s decision to designate Anthropic a supply-chain risk for defense systems and contracts, while a separate ruling continued to prevent a government-wide ban. The dispute arose after Anthropic resisted use of Claude for fully autonomous weapons and mass domestic surveillance. For law firms and contractors, the ruling shows that public-sector AI procurement can turn provider safety positions into eligibility and supply-chain questions under national-security authority. Clients should map where a model sits in regulated or government-facing work because one designation can affect subcontractors and integrated services beyond the direct vendor relationship.