US Treasury, Housing Agencies Cut Ties with Anthropic AI Following Trump Order
US Agencies Cut Ties with Anthropic AI After Trump Order

US Government Agencies Sever Ties with Anthropic AI Following Presidential Directive

In a significant development impacting the artificial intelligence sector, two key United States government agencies have moved decisively to terminate their relationships with Anthropic, the AI startup responsible for developing the Claude platform. This action comes directly in response to an executive order issued by President Donald Trump, who mandated that federal agencies immediately cease using the company's technology.

Treasury Department Takes Lead in Disengagement

The US Treasury Department emerged as the first federal entity to implement the presidential directive. Treasury Secretary Scott Bessent made the announcement official through a post on X, formerly known as Twitter, on Monday, March 2. Bessent declared that his department would immediately terminate all use of Anthropic products, with the Claude platform specifically mentioned.

"At the direction of @POTUS, the @USTreasury is terminating all use of Anthropic products, including the use of its Claude platform, within our department," Bessent stated in his social media communication. He further emphasized that "the American people deserve confidence that every tool in government serves the public interest, and under President Trump no private company will ever dictate the terms of our national security."

Federal Housing Finance Agency Follows Suit

Shortly after the Treasury Department's announcement, William Pulte, director of the Federal Housing Finance Agency (FHFA), confirmed that his agency would take identical action. Pulte revealed that the FHFA, along with government-backed mortgage giants Fannie Mae and Freddie Mac, would completely end all utilization of Anthropic's AI products and services.

"U.S. Federal Housing, Fannie Mae and Freddie Mac are terminating all use of Anthropic products, including the use of its Claude platform," Pulte announced, aligning his agency's position with the broader federal directive.

Root Causes Behind the Federal Disengagement

The decision to sever ties with Anthropic stems from a fundamental disagreement between the AI company and the Trump administration regarding the ethical boundaries of artificial intelligence deployment. Both agency representatives referenced President Trump's social media post while announcing their termination of Anthropic technology usage.

This dramatic development follows an intense standoff between Anthropic and federal authorities, primarily centered on the company's firm refusal to permit its AI models to be employed for mass domestic surveillance programs or fully autonomous weapons systems. The conflict reached its climax when President Trump issued his formal order on Friday, compelling the entire federal government to halt all collaborative work with the AI firm.

In his characteristically forceful statement, President Trump declared, "THE UNITED STATES OF AMERICA WILL NEVER ALLOW A RADICAL LEFT, WOKE COMPANY TO DICTATE HOW OUR GREAT MILITARY FIGHTS AND WINS WARS! That decision belongs to YOUR COMMANDER-IN-CHIEF, and the tremendous leaders I appoint to run our Military."

The President further criticized Anthropic's leadership, stating, "The Leftwing nut jobs at Anthropic have made a DISASTROUS MISTAKE trying to STRONG-ARM the Department of War, and force them to obey their Terms of Service instead of our Constitution. Their selfishness is putting AMERICAN LIVES at risk, our Troops in danger, and our National Security in JEOPARDY."

Presidential Directive and Implementation Timeline

President Trump's executive order contained specific instructions for federal agencies: "Therefore, I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic's technology. We don't need it, we don't want it, and will not do business with them again!"

The directive did provide some operational flexibility, noting that "There will be a Six Month phase out period for Agencies like the Department of War who are using Anthropic's products, at various levels." However, the President issued a stern warning to the company: "Anthropic better get their act together, and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow."

Trump concluded with a definitive statement about governmental authority: "WE will decide the fate of our Country - NOT some out-of-control, Radical Left AI company run by people who have no idea what the real World is all about."

National Security Implications and Pentagon Response

The Pentagon has taken an even more aggressive stance against Anthropic, announcing plans to formally designate the company as a supply-chain risk to national security. This classification would have far-reaching consequences, effectively prohibiting all US defense contractors from utilizing any of Anthropic's AI tools or platforms in their operations.

This multi-agency response represents a substantial escalation in the ongoing tension between the federal government and technology companies over AI ethics, national security priorities, and the appropriate boundaries of artificial intelligence deployment in sensitive governmental and military applications.