Anthropic PBC v. U.S. Department of War (Anthropic D.C. 2026)
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Overview
Overview
Anthropic's parallel challenge in the D.C. Circuit to the Federal Acquisition Supply Chain Security Act designation. Filed same day as the N.D. Cal. case (March 9, 2026). Claims: pretextual First Amendment retaliation, Fifth Amendment due process, arbitrary and capricious agency action, procedural violations, and statutory overreach. Emergency stay denied April 8 but case expedited. Oral argument scheduled May 19, 2026. The court noted concerns about 'judicial management of how the Department of War secures vital AI technology during an active military conflict.'
The Issue
Issue
Whether the Department of War's designation of Anthropic as a supply chain risk violates the First Amendment by retaliating against protected speech, violates Fifth Amendment due process, and constitutes arbitrary and capricious agency action under the Administrative Procedure Act.
The Rules
Rule
Government action targeting private parties based on protected speech is subject to strict scrutiny under the First Amendment; executive designations must have a genuine regulatory purpose and cannot be pretextual retaliation. Agency action is arbitrary and capricious if the agency has not examined relevant data and articulated a rational connection between facts found and choice made (Motor Vehicle Mfrs. v. State Farm).
The Application
Analysis
Anthropic argues the Department of War's designation is pretextual retaliation for policy positions or public advocacy, not genuine national security concern. The court must weigh whether record evidence supports a non-retaliatory national security basis or whether the timing and targeting suggest constitutional violation. The expedited posture and active military conflict context informed the court's concern about the proper judicial role in reviewing such designations.
The Conclusion
Conclusion
The D.C. Circuit denied emergency stay relief on April 8 but expedited the case; oral argument occurred May 19, 2026. The court expressed institutional hesitation about judicial management of supply chain security during active military conflict, leaving the outcome dependent on whether Anthropic can prove pretextual retaliation or APA violation on the merits.
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