This is a developing story. NCT previously covered Judge Lin’s preliminary injunction on March 27 and the full hearing proceedings. This article covers the DOJ’s appeal filed on April 2.
The Department of Justice filed a notice of appeal on Thursday to overturn the federal court order that blocked the Trump administration’s ban on government use of Anthropic’s AI technology, Bloomberg reported, citing a court filing.
The appeal targets U.S. District Judge Rita Lin’s March 26 preliminary injunction, which barred the Pentagon from enforcing its supply chain risk designation against Anthropic and blocked the White House directive ordering federal agencies to stop using Claude. Lin had stayed her own order for one week specifically to give the government time to appeal.
What’s at stake
The February White House directive gave agencies a six-month phaseout period to stop using Claude models, according to PYMNTS. If the DOJ’s appeal succeeds in overturning Lin’s injunction, that timeline could be reinstated or accelerated.
The commercial impact extends beyond direct government contracts. Seeking Alpha reported that the case tracks under Anthropic’s stock ticker (ANTHRO) alongside Google (GOOG) and Amazon (AMZN), reflecting the company’s investor base. During the original March hearing, Anthropic told the court that the government’s actions caused more than 100 customers to express concerns about continuing to use the company’s services, a chilling effect that extended well beyond federal agencies.
The dispute originated when the Pentagon set a deadline for Anthropic to agree that the military could use Claude in “all lawful use cases.” Anthropic refused and sought contract language prohibiting use for autonomous weapons and mass domestic surveillance. The Pentagon then designated Anthropic a supply chain risk, per PYMNTS.
Compounding pressure
The appeal lands on the same day new security problems emerged around Claude Code, Anthropic’s AI coding agent. A critical vulnerability (CVE-2026-21852) was disclosed, the leaked source code revealed hidden frustration-tracking features, and a lawmaker demanded a national security briefing on the leak.
For enterprises building on Anthropic’s stack, the DOJ appeal means the regulatory uncertainty that Lin’s injunction briefly resolved is back. Defense contractors who use Claude in non-military work face renewed questions about whether the supply chain designation could extend to their commercial operations. The appeals process could take months.