Treasury terminates Anthropic AI use after Trump's order

The U.S. Treasury Department confirmed Monday it is terminating all use of Anthropic's AI products, including Claude Code, following President Trump's executive directive ordering every federal agency to blacklist the company. The action stems from Anthropic's refusal to remove safety guardrails from its Claude AI system for use in Pentagon mass surveillance programs and autonomous weapons guidance -- a line the company held even after Defense Secretary Pete Hegseth set a Friday 5:01 PM deadline demanding compliance.

The blacklisting represents one of the most sweeping federal actions against a major American AI company. Anthropic had established a broad government footprint under a GSA OneGov agreement that made Claude available across all three branches of government. That access is now being dismantled. The General Services Administration is removing Anthropic from its Multiple Award Schedule and USAi procurement program, cutting off the primary channel through which agencies purchase the company's tools. Agencies have a 6-month window to complete the phase-out. Hegseth also extended the restrictions to defense contractors, barring any commercial activity with Anthropic -- a move the Professional Services Council warned carries broad compliance implications across the defense industrial base.