Hegseth, Trump had no authority to order Anthropic to be blacklisted, judge says

A federal judge has delivered a significant legal blow to the Trump administration's efforts to blacklist AI company Anthropic. US District Judge Rita Lin granted Anthropic's request for a preliminary injunction, blocking the Department of War from enforcing a supply-chain risk designation against the company. Judge Lin ruled that former President Donald Trump and Secretary of War Pete Hegseth had no legal authority to take such extreme action, which she characterized as 'classic First Amendment retaliation' designed to punish Anthropic for its public criticism of government contracting positions. The judge noted the designation—typically reserved for foreign intelligence agencies and hostile actors—had never been applied to a domestic company and was enacted without evidence of an urgent national security risk.

The ruling comes as a major relief for Anthropic, which argued the blacklisting was already causing 'irreparable harm,' including the cancellation of three trade deals and delays in other partnerships. The company warned it stood to lose potentially billions in private and government contracts over the next five years. However, the legal fight is not over. Judge Lin granted the government a 7-day administrative stay, giving officials time to seek an emergency stay from an appeals court. DoW Under Secretary Emil Michael called the order 'a disgrace' and claimed it contained factual errors, signaling the administration's intent to continue the fight.

The case touches on fundamental questions about AI governance and free speech. Anthropic has maintained its models are not ready for mass surveillance or autonomous weapons, and military leaders filed a brief warning that the DoW's directive would 'materially detract from military readiness and operational safety.' While Judge Lin acknowledged the important public debate about whether AI companies or the government should decide safe AI uses, her ruling focused strictly on the legal overreach and constitutional violations by administration officials.