All week, everyone read this as a clean government win. Then the Pentagon files a notice of appeal — to keep a label a court already told them to take off. This is Anthropic Pentagon Watch, Friday. Today: who's actually playing offense, and whether that supply-chain-risk label is anywhere near as locked in as everyone assumed. For the first time this week, the government is the one fighting a court order. Anthropic isn't the party pushing back. Let's get into why. Inside Defense, with Theresa Maher:
The appeal comes as no surprise given there was a seven-day stay on Lin’s order from the date it was issued -- a stay Under Secretary of Defense for Research and Engineering Emil Michael said was granted to allow for the government to appeal the decision.
Here's the wrinkle in the clean-government-win story. The Pentagon just filed a notice of appeal — but read what they're appealing. On March 26, Judge Rita Lin ordered agencies to stop calling Anthropic a supply chain risk. DoD is fighting to keep the label, which means a court already ruled against them on it. So a judge told them to pull the blacklist, and they said no, we're appealing to the Ninth. First time all week the government is the one losing in court and refusing the order. And they planned for this. Emil Michael, the R-and-E under secretary, basically said the quiet part on X — the seven-day stay existed specifically so they'd have a window to appeal. The injunction never really bit. Right, that's the trick. Lin granted relief, Anthropic technically won — and a stay plus a Ninth Circuit filing keeps Claude locked out of classified networks through the appeal. The legal win is real, and the contracts are still gone. So the evidence is back in the spotlight. Whatever standard Lin used to throw the designation out, DoD now has to defend it at the appellate level — in writing, on the record. Here's Liza Craig at Goodwin:
President Trump has ordered US government agencies to “immediately cease” using technology and services offered by Anthropic, and Secretary Hegseth has ordered the Pentagon to designate Anthropic a “supply chain risk” to national security. Federal defense and civilian contractors may soon be prohibited from using Anthropic’s Claude in the performance of government prime or subcontracts.
Goodwin's client alert from March 5th is the genre at this point — “What Federal Contractors Need to Know.” That's the third firm now billing on this designation. Add Goodwin to Mayer Brown and Jones Walker. There's a whole compliance practice that exists because Hegseth slapped a label on one company. And read the “Bottom Line Up Front” — it's not just prime contracts. Goodwin's warning contractors to assess whether they can even use Claude for internal work unrelated to a federal contract. That's the tell. A supply-chain-risk label from one agency, and the lawyers are telling clients to rip Claude out of the building entirely. The blast radius is the point. And after the appeal we just talked about — DoD fighting an order to remove the label — this March memo reads differently now. Contractors who thought the obligation was settled have to track an appellate court that could flip it. Right — Goodwin tells you to comply, a judge tells the Pentagon to undo it, and the Pentagon says no. Which advice do you bill against? If Anthropic Pentagon Watch helps you stay ahead of the week, please subscribe and leave a quick review wherever you're listening. It only takes a moment, and it helps other people find the show.
We've put links to every story we covered today in the show notes, so if one deserves a closer read, you'll find it there. That's Anthropic Pentagon Watch for today. This is a Lantern Podcast.