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Anthropic asks the full D.C. Circuit to undo the ruling that upheld its Pentagon blacklisting

Anthropic petitioned the full D.C. Circuit on Oct. 13 to rehear a Sept. 25 panel ruling, decided 2-1, that upheld the Pentagon's supply-chain-risk label on the company. The court has not yet said whether it will hear the case.

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Photograph accompanying Anthropic asks the full D.C. Circuit to undo the ruling that upheld its Pentagon blacklisting
Photo: channelnewsasia.com
Anthropic went from Pentagon contract to court loss Key dates in Anthropic's dispute with the Defense Department, from the July 2025 contract to the October 13, 2026 petition.

July 2025: Anthropic signs a $200 million Pentagon contract. September 2025: talks collapse. March 2026: risk label applied. August 27, 2026: Judge Lin finds unlawful retaliation. September 25: D.C. Circuit panel sides with Pentagon. October 13, 2026: Anthropic seeks rehearing.

Anthropic went from Pentagon contract to court loss
DateEventClaim
July 2025Anthropic signs $200 million Pentagon contract9
September 2025Talks on Claude's GenAI.mil deployment collapse9
March 2026Defense Department applies supply chain risk label20
August 27, 2026Judge Rita Lin rules related Pentagon actions unlawful retaliation10
September 25, 2026D.C. Circuit panel rules for the Pentagon2
October 13, 2026Anthropic petitions full D.C. Circuit to rehear1

What happened

  • CNBC reported that the Defense Department, led by Pete Hegseth, applied the label in March after contract talks broke down, blocking defense contractors from using Anthropic's technology in agency work.
  • Cryptobriefing reported that the panel majority found "ample support" for the designation and cited the chance that Anthropic's restrictions could constrain military operations; Judge Henderson dissented.
  • On Aug. 27, Judge Rita Lin of a California district court ruled that related Pentagon actions were unlawful retaliation against Anthropic's public AI-safety positions, according to Cryptobriefing.

Why it matters

  • contradiction The accounts differ on scope: Cryptobriefing says Pentagon personnel and contractors cannot use Claude at all, while CNBC says contractors are blocked in their work with the agency. The difference matters to a contractor with commercial work that never touches Defense.
  • decision Anthropic is using the full-court petition to try to reset the outcome before any Supreme Court filing, according to Cryptobriefing, so a denial leaves the Supreme Court as the step after.
  • exposure Contractors' access to Claude hangs on Anthropic's own usage terms: the government's stated concern is its ban on lethal autonomous warfare and domestic surveillance uses, and the petition defends those commitments in court.

The one dollar figure in either account is the $200 million Pentagon contract Anthropic signed in July 2025 [9]. The calendar around it can be worked out. CNBC dates the label to March 2026 [20], which puts it eight months into that contract [18] and six months after the GenAI.mil talks collapsed [19]. Cryptobriefing says "around February or March 2026" [21], and we use March. The petition followed the panel ruling by 18 days [17].

The petition's own words are the cleanest statement of the case. Anthropic's attorneys wrote: "A divided panel upheld that extraordinary designation." [6] They also wrote that the court ignored "straightforward evidence the designation was retaliation for Anthropic's speech about AI safety." [7]

The petition can go two ways. An en banc petition asks every active judge on the court to weigh in [11]. If the court grants it, the panel decision could be reconsidered from scratch [13]. If it declines, the panel ruling stands in that circuit [14]. We think the petition changes the schedule and leaves the exposure where it is, because neither outcome by itself returns a contractor's access to Claude.

The counter-thesis is Judge Lin's California order. According to Cryptobriefing, the petition leans on the gap between Judge Lin's order, which framed the government's actions as punishment for protected speech, and the panel, which treated the matter as national security deference [15]. The petition also argues that the panel moved ahead without properly grappling with the due process and First Amendment questions [8]. If the full court finds that gap persuasive, a grant is a live outcome. We'd expect the California order not to reach the designation itself, since Anthropic would have little need of the D.C. petition otherwise.

We are wrong if the full court grants rehearing and reverses quickly, or if the revenue behind the label is small. CNBC and Cryptobriefing do not cover investors or Anthropic's revenue from Defense and its contractors, so what the label costs in dollars is not in the record.

What to watch

  • The D.C. Circuit's order granting or denying the petition; a grant reopens the panel decision from scratch, and a denial leaves it standing in that circuit.
  • Whether the government challenges Judge Lin's Aug. 27 California order, whose substantive core Cryptobriefing says has gone unchallenged so far.
  • Any disclosure of what Defense and its contractors pay Anthropic, which would size the exposure in dollars.

Clarity's read

What the record supports and how the coverage leans. The claims behind it follow.

Reality

Evidence68
Adoption
Insufficient
Hype gap+10
Incentives
Insufficient
Confidence66
Why these scores

Claim ledger

Ranked by verification strength, evidence, and original report placement.

  1. [1]

    On October 13, 2026, Anthropic filed a petition asking the full US Court of Appeals for the D.C. Circuit to rehear, en banc, a case it lost in September.

    Reported Supported Source: Cryptobriefing2 sources— create a free account to open themView cited source
  2. [2]

    The D.C. Circuit panel ruled on September 25, siding with the Pentagon, which had labeled Anthropic a supply chain risk under the Federal Acquisition Supply Chain Security Act (FASCSA).

    Reported Supported Source: Cryptobriefing2 sources— create a free account to open themView cited source
  3. [3]

    The D.C. Circuit's September decision was 2-1 and rejected Anthropic's argument that the Defense Department's ban on its Claude models was arbitrary, unauthorized and unconstitutional.

Sources

3 independent publishers whose own reporting we read for this story.

  1. channelnewsasia.com

    1 article · October 13, 2026

    Anthropic seeks rehearing of case over Pentagon's security risk branding
  2. cnbc.com

    1 article · October 13, 2026

    Anthropic urges court in Washington, D.C. to rehear appeal of Pentagon blacklisting
  3. cryptobriefing.com

    1 article · October 13, 2026

    Anthropic asks full appeals court to revisit Pentagon national security ruling

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