Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 29 OCTOBER 2026

D.C. Circuit Rules Pentagon Can Exclude Anthropic From Supply Chain

Taft, Stettinius & Hollister LLP
Explore more from Taft, Stettinius & Hollister LLP

The U.S. Court of Appeals for the D.C. Circuit has ruled that the Department of War can exclude Anthropic from its supply chain under the Federal Acquisition Supply Chain Security Act, finding that the AI company's ability to manipulate its Claude model creates a supply chain risk. This decision contrasts with an earlier California district court ruling that blocked a similar designation under a different statute, creating a complex legal landscape for AI providers and government contractors.

United StatesGovernment, Public Sector
Suzanne Sumner
Suzanne Sumner
Zachary Heck
Zachary Heck
Christina Heidecker
Christina Heidecker
Author LinkedIn connections

On September 25, 2026, the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit) ruled that the Department of War (DoW) reasonably concluded Anthropic poses a supply chain risk under the Federal Acquisition Supply Chain Security Act (FASCSA).

As discussed in our previous articles on this topic, the DoW designated Anthropic a supply chain risk under two separate statutes, 10 U.S.C. § 3252 and 41 U.S.C. § 4713. Anthropic challenged the DoW’s designation in the U.S. District Court for the Northern District of California (regarding the § 3252 designation) and in the D.C. Circuit (regarding the § 4713 designation).

The U.S. District Court for the Northern District of California (California District Court) ruled in favor of Anthropic in an August 27, 2026 decision. In that case, the DoW’s reliance on 10 U.S.C. § 3252 to find Anthropic is a supply chain risk was at issue:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

See more popular content from

Article

SBA Extends Deadline For Comments On Historic Overhaul Of Size Standards

The Small Business Administration has extended the comment period for two proposed rules that could dramatically reshape federal government contracting by significantly expanding the pool of entities eligible for small business set-aside procurements. With some size standard thresholds proposed to increase as much as tenfold, these changes would fundamentally alter the makeup of the small business contractor base.
United StatesGovernment, Public Sector
Crowell & Moring LLP
Crowell & Moring LLP
Article

FMCSA MOTUS Implementation – Common Motor Carrier Concerns

The Federal Motor Carrier Safety Administration launched MOTUS in May 2026, replacing legacy registration platforms and fundamentally changing how motor carriers, freight brokers, and surface freight forwarders handle operating authority applications and license maintenance. While designed to combat fraud and streamline registration activities, the transition has created significant user experience challenges that threaten operating authority status and customer relationships for transportation service prov
United StatesGovernment, Public Sector
Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
Article

BIOSECURE Act Update: Court Enjoins WuXi AppTec’s 1260H Designation, but Strategic and Compliance Clocks Keep Running

The U.S. District Court for the District of Columbia has preliminarily enjoined the Department of War from enforcing WuXi AppTec's Section 1260H designation, finding the agency misread its evidence on state and military affiliation. However, this ruling does not close alternative pathways to biotechnology company of concern (BCC) designation under the BIOSECURE Act, and earlier supply-chain restrictions continue to drive near-term compliance decisions with a critical June 30, 2027 deadline for sub-tier supp
United StatesGovernment, Public Sector
Greenberg Traurig
Greenberg Traurig
Article

Massachusetts’ 2026 Ballot Questions: What Clients Need To Know

Massachusetts voters will decide nine statewide ballot questions in November 2026 that could fundamentally reshape the state's legal, regulatory, and fiscal landscape. These measures address government transparency, election reforms, housing development, marijuana regulation, firearms laws, and state revenue limits, with implications extending far beyond Election Day to implementation, regulation, and ongoing policy debates.
United StatesGovernment, Public Sector
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Article

Weekly Sanctions Update: September 14, 2026

The Treasury Department intensifies economic pressure on Iran through Operation Economic Outcast, suspending aviation licenses and sanctioning dozens of entities while implementing a presumption of denial for Iran-related transactions. Meanwhile, new enforcement actions target Chinese cybercrime platforms, Ecuadorian terrorist organizations, and Israeli settlers, as Congress considers comprehensive Russia-Iran sanctions legislation.
GlobalGovernment, Public Sector
Steptoe LLP
Steptoe LLP
Article

The Analysts' Brief: The US-Russia Diesel Deal

The Trump administration's October 2025 diesel deal with Russia promises temporary sanctions relief to ease US fuel prices before midterm elections, but analysts question whether the limited supply will meaningfully impact global markets or represent a lasting shift in US-Russia relations. The agreement has already strained transatlantic partnerships and US-Ukraine cooperation while raising compliance uncertainties for businesses navigating evolving sanctions regimes.
GlobalGovernment, Public Sector
Steptoe LLP
Steptoe LLP
Article

DOJ Continues DEI False Claims Act Enforcement With $25 Million Accenture Settlement

The Department of Justice announced a $25 million settlement with Accenture Federal Services over allegations that the company violated the False Claims Act by falsely certifying compliance with anti-discrimination requirements while allegedly using race or sex in hiring, promotion, and access to professional development programs. This marks the third major DEI-related FCA enforcement action in 2026, following similar settlements with IBM and Deloitte.
United StatesGovernment, Public Sector
Bass, Berry & Sims PLC
Bass, Berry & Sims PLC
Article

Eleventh Circuit Developments: Decisions On Florida And Georgia Social Media/Minor Laws And New Alabama Law

Legal risk intensifies for companies offering online interactive features to minors across Georgia, Florida, and Alabama as the Eleventh Circuit vacates preliminary injunctions against state social media laws. With Florida's HB 3 and Georgia's SB 351 now enforceable and Alabama's HB 161 set to take effect January 1, 2027, businesses face divergent compliance requirements including age verification, parental consent mechanisms, and account deletion protocols.
United StatesPrivacy
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP
Article

The Big Long List Of U.S. AI Laws

State legislatures across the U.S. have enacted a complex web of AI regulations affecting private sector businesses, spanning employment decisions, healthcare applications, consumer interactions, and digital rights. These laws impose compliance obligations including bias audits, disclosure requirements, and restrictions on automated decision-making, with enforcement mechanisms ranging from regulatory oversight to private rights of action. Understanding which state laws apply to your AI systems is critical,
United StatesCorporate/Commercial Law
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP
Article

SEC Proposes Rule Changes And Seeks Comments On Additional Accredited Investor Pathways

The Securities and Exchange Commission has proposed six new pathways for individuals to qualify as accredited investors, moving beyond traditional income and wealth thresholds. These changes would allow qualification through professional certifications like CPA, CFA, and CFP designations, as well as through a new FINRA-administered exam testing securities knowledge.
United StatesFinance and Banking
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP
Article

AI-Powered Call Transcription Tools Present Class Action BIPA Risk

AI-powered call transcription tools like Otter.ai are facing class action lawsuits under Illinois' Biometric Information Privacy Act (BIPA) for allegedly collecting voiceprints without proper consent. A federal court recently allowed claims to proceed, signaling potential legal risks for companies that provide or utilize these increasingly common meeting recording services.
United StatesIntellectual Property
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP
Article

Quick Update: Delaware Privacy Act Amendments, CCPA Data Broker Enforcement, And Texas Warning On CIPA Demand Letters

Recent developments in Delaware, California, and Texas highlight a common theme that privacy compliance risk is becoming more operational and technical and more likely to arise from practices that may once have appeared routine. (1) Delaware has expanded the reach and substantive requirements of its comprehensive privacy law; (2) California continues its focus on data brokers by bringing a Delete Act action against a data broker; and (3) the Texas Attorney General has warned businesses about a surge in CIPA website tracking demand letters.
United StatesPrivacy
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP
Article

Illinois' Clean And Reliable Grid Affordability Act Enacts New Statewide Zoning Standards For Energy Storage Systems

Illinois has enacted the Clean and Reliable Grid Affordability Act, establishing comprehensive statewide zoning and permitting standards for commercial energy storage systems with capacity exceeding 1 MW. The legislation creates uniform requirements for setbacks, decommissioning, financial assurance, and safety standards while limiting local governments' ability to impose more restrictive regulations.
United StatesEnergy and Natural Resources
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP
Article

Robotics And Power Equipment Manufacturers Face Expanded FCC National Security Review Requirements

The FCC has expanded its national security review requirements to cover certain foreign-produced advanced robotic devices and power inverters, potentially requiring manufacturers to demonstrate their products do not present unacceptable national security risks before receiving FCC equipment authorization. Companies with global manufacturing operations, offshore assembly, or international supply chains should evaluate whether existing or future products could be subject to these expanded requirements and beg
United StatesGovernment, Public Sector
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP