Trump Administration Terminates Anthropic Contracts at Treasury
The U.S. Treasury Department is ending all use of Anthropic products, including its Claude AI platform, after a directive from President Donald Trump.
Treasury Secretary Scott Bessent confirmed the move Monday, saying the department and a federal housing agency are terminating the AI firm’s technology from federal operations, according to Reuters.
The decision follows months of escalating friction between the Trump administration and Anthropic over federal AI standards and alleged political bias concerns.
Reuters reported that Trump directed agencies to stop using the startup’s systems, triggering immediate compliance steps at Treasury.
Anthropic has denied allegations of bias and has previously stated its models comply with federal procurement and safety guidelines.
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“We are complying fully with the President’s directive,” Bessent said, according to Reuters.
The move signals a sharp shift in federal AI procurement policy and could affect broader government contracts tied to generative AI systems.
While Treasury and the housing agency are the first confirmed departments to act, it remains unclear whether other agencies will follow or how quickly existing contracts will be unwound.
The announcement comes amid growing scrutiny of AI firms working with the federal government and could reshape how agencies vet private AI vendors moving forward.
Additional agency statements are expected as implementation timelines become clearer.
The broader federal response may determine how significantly the administration restructures its AI partnerships.
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