Federal Agencies Drop AI Company Following Trump’s Direct Order

The Treasury Department and federal housing agency have completely stopped using products from AI company Anthropic after President Trump ordered government agencies to cut ties with the startup. The move follows a dispute over technology safety measures and marks an unusual government rejection of a leading American AI firm.

Federal agencies are cutting all ties with artificial intelligence company Anthropic following a direct directive from President Trump to cease using the startup’s technology products.

On Monday, Treasury Secretary Scott Bessent announced via social media that his department would completely discontinue using all Anthropic services, including the company’s Claude AI platform. This action follows Trump’s Friday mandate ordering government entities to sever relationships with the AI firm.

The Federal Housing Finance Agency is also eliminating its use of Anthropic technology, according to Director William Pulte, who posted the announcement on X. Pulte indicated that mortgage giants Fannie Mae and Freddie Mac would likewise stop using the company’s products.

The Pentagon has indicated it will classify Anthropic as a supply chain security concern, delivering a significant setback to the artificial intelligence company following disagreements over technology safety protocols.

Trump has established a six-month transition period for the Defense Department and other federal agencies currently utilizing Anthropic’s services to phase out their operations.

This government action represents an unusual rejection of a major American AI company that has helped maintain U.S. leadership in artificial intelligence technology critical to national security. The move could isolate Anthropic in a way typically reserved for foreign competitors.

Meanwhile, competing AI firm OpenAI revealed late Friday that it secured its own agreement to provide technology services to the Defense Department’s secure networks.