Anthropic Seeks Full D.C. Circuit Review of Supply Chain Risk Ruling

Anthropic filed a petition for rehearing en banc with the US Court of Appeals for the D.C. Circuit on October 13, 2026, seeking review of a ruling that upheld the US Department of Defense's designation of the company as a supply chain risk, according to aitimes.com.

Anthropic argues that a three-judge appeals panel's 2-1 ruling on September 25, 2026 upholding the designation was wrong and that the full appeals court should rehear the case. Judge Gregory Katsas wrote the majority opinion.

Anthropic's lawyers said the Defense Secretary branded the company a national security supply chain risk because it refused to allow its AI models to be used for mass surveillance of Americans or lethal autonomous warfare and publicly explained those AI safety principles.

Anthropic claims the majority opinion ignored clear evidence that the designation was retaliation for its statements on AI safety, and that the US Department of Defense issued the designation without prior procedure and misinterpreted the law.

The dispute dates back to July 2025, when Anthropic signed a $200 million contract with the US Department of Defense. In September 2025, negotiations broke down while the two sides discussed deploying Claude on the department's AI platform GenAI.mil.

In March 2026, the US Department of Defense designated Anthropic and its product a supply chain risk to US national security, limiting defense contractors' use of Anthropic technology in related work. Anthropic filed two lawsuits: one in California challenging a directive that federal agencies stop cooperating with Anthropic, and one in Washington, D.C. challenging the legality of the supply chain risk designation itself. In August 2026, US District Judge Rita F. Lin ruled in the California case that the department's action may have stemmed from retaliation against Anthropic rather than legitimate security concerns, and ordered the ban on federal agencies' use of the technology lifted.