Trump Administration Leaves Door Open for Additional Measures Against Anthropic

During Anthropic’s initial court proceeding disputing the sanctions imposed by the Trump administration, the AI startup requested assurances from the government that no further penalties would be applied. This request was left unanswered.

“I cannot offer any guarantees on that matter,” stated James Harlow, a Justice Department lawyer, in a video call with US district judge Rita Lin on Tuesday.

In fact, the government is preparing to take additional action aimed at restricting the company from conducting business with federal agencies. Reports indicate that President Trump is finalizing an executive order that would officially prohibit the use of Anthropic tools throughout the government, according to an unnamed White House source who is not permitted to comment on the situation. Axios was the first to disclose the plan.

The hearing on Tuesday was part of one of the two federal lawsuits that Anthropic filed against the Trump administration on Monday, claiming that the government unconstitutionally labeled it as a supply-chain risk, effectively isolating it within the tech industry. Anthropic now faces billions in potential revenue loss as current and potential clients withdraw from agreements and seek new stipulations, the company reported.

Anthropic is aiming for a preliminary court ruling to lift the risk designation and prevent further punitive actions from the administration.

The court session on Tuesday was intended to set a timetable for a preliminary hearing, which Anthropic is eager to expedite to mitigate additional harm to its operations. Michael Mongan, an attorney from WilmerHale representing Anthropic, expressed willingness to postpone until April if the Trump administration could assure no further actions would be taken. “The defendants’ actions are resulting in irreparable harm, which continues to escalate daily,” Mongan noted.

After Harlow declined to provide assurances, Judge Lin rescheduled the hearing to March 24 in San Francisco, although this date was still later than Anthropic desired. “The implications of this case are significant for both parties, and I intend to ensure an expedited yet thorough examination,” the judge remarked.

Proceedings in the other case in Washington, DC, are currently paused as Anthropic navigates an administrative appeal with the Department of Defense, which is anticipated to be unsuccessful on Wednesday.

The ongoing conflict between the Pentagon and Anthropic traces back to the AI startup’s refusal to approve its current technologies for lawful military use, due to concerns about potential extensive surveillance of American citizens and the possibility of missile launches without human oversight. The Defense Department maintains that decisions regarding usage fall under its authority.

Legal experts familiar with government contracts and the US Constitution suggest that the administration’s actions against Anthropic exemplify a trend of leveraging the law to penalize perceived political adversaries, including educational institutions, media organizations, and law firms (like WilmerHale, which represents Anthropic). While these experts believe Anthropic has a strong case, overcoming the typical judicial deference to national security claims made by the government, particularly in wartime, remains a challenge.

“If this were an isolated incident, one might afford the president some leeway,” comments Harold Hongju Koh, a Yale Law School professor and former member of the Barack Obama administration who has analyzed the Anthropic situation. “However, it is now very clear that this represents the latest instance in a series of punitive presidential actions.”

David Super, a Georgetown University Law Center professor specializing in the Constitution, notes that the provisions invoked by the Defense Department to sanction Anthropic were originally intended to defend the nation against potential sabotage from adversaries.