The D.C. Circuit's decision backing the U.S. Department of Defense's removal of Anthropic from its supply chain was based on a broad reading of the Federal Acquisition Supply Chain Security Act, which could lead contractors to be more careful about publicizing disputes with the department.
[...]
But this interpretation of the FASCSA regulations and what constitutes a covered product encapsulates very common commercial practices, putting more defense contractors at risk of exclusion from the DOD's supply chain should they publicly disagree with the department, said Michael Montalbano, a government contracts partner with Blank Rome LLP.
"I think it's certainly possible that the administration could flex its newfound authority under FASCSA. What I think is more likely to happen is that contractors will self-censor themselves, so that they will be very wary to make any disagreements with the Department of War public," Montalbano said.
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"DC Circ. Anthropic Ruling Could Chill Contractor Speech," by Madeline Lyskawa was published in Law360 on September 29, 2026.