Federal agencies and their contractors are navigating informal directives from the Trump administration amid efforts to cut off Anthropic from government systems, highlighting the challenges and costs of removing a major AI vendor from federal supply chains.
Following President Trump’s order for federal agencies to “immediately cease” using Anthropic’s technology, many report that they have received no formal guidance beyond the president’s social media posts on how to proceed. This comes after negotiations between the Pentagon and the AI company broke down over disagreements on safety guardrails. But at what cost, and what does it means for taxpayers?
Franklin Turner, Co-Chair of McCarter’s Government Contracts & Global Trade Practice, expects the situation will have a financial impact on the government. Should a subcontractor say they are using Anthropic, agencies “would have to terminate that subcontract” and “go out and find a new one,” he told The Hill. “That carries with it a cost and that’s a cost that wasn’t foreseen at the time you prepared and submitted your bid,” he added.