Congress and Trump Administration Clashes

The Pentagon has formally designated Anthropic as a “supply chain risk” — a label typically reserved for foreign adversaries — forcing companies to stop using Claude on Defense‑related work, prompting at least 100 customers across sectors such as pharma and fintech to pause or cancel contracts, and leading Microsoft to seek a temporary restraining order ahead of a March 24 hearing. Concurrently, new draft GSA guidance to add “all lawful uses” to procurement rules and a broader procurement‑driven strategy (including trade restrictions, immigration controls, equity stakes and redirected research funding) indicate AI governance is increasingly being exercised through defense and federal contracting rather than through traditional public regulatory channels.