Trump readies executive order to remove Anthropic's Claude from federal agencies

White House Executive Order Targets Anthropic's AI Claude

The Trump administration is preparing to issue an executive order that would formalize the removal of Anthropic's AI technology from federal agencies across the executive branch, according to sources familiar with the matter. The order could be issued as soon as this week, escalating a dispute between the U.S. company and the administration over restrictions on military applications 1

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. President Trump announced on Feb. 27 that he was ordering all federal agencies to "IMMEDIATELY CEASE all use of Anthropic's technology," marking an unprecedented move to blacklist a domestic tech firm outside standard procurement processes 2

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Pentagon's Designation Sparks Legal Battle

The conflict stems from restrictions Anthropic sought on using Claude for mass surveillance and autonomous lethal weapons. Defense Secretary Pete Hegseth issued an order deeming Anthropic a supply chain risk, a designation typically reserved for companies linked to foreign adversaries 2

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. The Pentagon rejected guardrails Anthropic proposed, insisting the military must be able to deploy the AI technology for "any lawful use." The Pentagon has initiated a six-month phaseout of Claude, while other agencies including the Treasury Department have already begun to offboard Anthropic 1

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Anthropic Files Lawsuit Claiming Retaliation

Anthropic filed a lawsuit on Monday seeking to block both the Pentagon's designation and the president's directive, arguing the administration is illegally retaliating for First Amendment-protected speech. The company contends that Congress in its procurement laws did not give the administration the authority to prohibit federal agencies from working with a U.S. company over protected speech 1

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. "Anthropic's contracts with the federal government are already being canceled. Current and future contracts with private parties are also in doubt, jeopardizing hundreds of millions of dollars in the near-term," the lawsuit states, adding that the company faces reputational damage and threats to core First Amendment freedoms 2

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National Security Concerns Drive Administration's Push

The administration has argued that Anthropic's "safeguards" pose national security concerns in the context of industry intervening during military operations 1

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. Trump has stated his administration would not use "woke AI," formalizing a broader push across agencies to remove Claude 1

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. The move represents a departure from Trump's first term approach, when executive orders targeted foreign tech firms on national security grounds, including actions involving Chinese telecom companies. In the case of Huawei, Trump did not explicitly name the company in his executive order—that required an act of Congress 1

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. This situation marks little precedent for cutting ties with Anthropic through an order that specifically names a U.S. company outside standard procurement processes.