US Treasury and federal agencies terminate Anthropic AI products after Trump's order

US Treasury Terminates All Anthropic Products Following Presidential Directive

The US Treasury is ending use of Anthropic products, including its Claude platform, in response to President Donald Trump's order to cease all government work with the AI startup 1

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. Treasury Secretary Scott Bessent announced the termination on Monday, stating that "under President Trump no private company will ever dictate the terms of our national security" 3

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. The decision forces employees to rework projects that rely on Anthropic's models and raises questions about whether other AI vendors will face similar scrutiny 2

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Government-Wide Ban Expands Across Multiple Federal Agencies

The Federal Housing Finance Agency, along with mortgage agencies Fannie Mae and Freddie Mac, joined the government-wide ban by terminating all use of Anthropic products 1

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. The State Department switched its in-house chatbot StateChat from Anthropic to OpenAI, now using GPT4.1, according to internal memos 4

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. Health and Human Services also notified employees to use alternative AI platforms such as ChatGPT and Gemini instead 4

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. Trump on Friday directed every federal agency to immediately cease all use of Anthropic's technology, warning the company to "get their act together" during the phase-out period or face "the Full Power of the Presidency" with "major civil and criminal consequences" 3

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Pentagon Declares Anthropic a Supply-Chain Risk After Dispute

The Pentagon declared Anthropic a supply-chain risk following a dispute with the Pentagon over technology guardrails and how AI should be deployed for national security purposes 1

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. The Trump administration has been at odds with Anthropic over safeguards to prevent the military and intelligence agencies from using its AI technology to target autonomous weapons and conduct domestic surveillance of US citizens 4

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. Anthropic had rejected the Pentagon's demand for unconditional military use of its Claude models and has vowed to sue over "intimidation," insisting its technology should not be used for mass surveillance or deployed in fully autonomous weapons systems 3

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. The Pentagon argues it operates within the law and that contracted suppliers cannot set terms on how their products are employed 3

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OpenAI Secures Pentagon Deal as Agencies Switch Providers

While phasing out Anthropic, the federal government is rapidly transitioning to competitors. Late Friday, OpenAI announced its own deal to deploy technology in the Defense Department's classified network 1

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. Sam Altman clarified on Monday that OpenAI would amend its Pentagon deal to make clear its AI system would not be "intentionally used for domestic surveillance of US persons and nationals," with the department understanding this limitation to "prohibit deliberate tracking, surveillance or monitoring" 4

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. Trump's order allows a six-month phase-out period for the Defense Department and other agencies currently using Anthropic's products 1

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Extraordinary Rebuke Threatens Anthropic's Status in AI Leadership

These actions mark an extraordinary rebuke by the United States against one of the premier companies that have kept it in the lead on national security-critical AI, threatening to give Anthropic a pariah status that Washington until now had reserved for enemy suppliers 1

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. Last year, Claude was made broadly available across all three branches of the federal government under a General Services Administration OneGov agreement, with Treasury employees using Anthropic's Claude Code and other products 2

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. The situation has become a rare public dispute between a major tech firm and the US government, raising questions about how technology guardrails will be negotiated between AI companies and federal agencies moving forward 3

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