A new Congressional Research Service report examines federal government actions against Anthropic and their implications for AI innovation, competition, and national security. A dispute between the Department of Defense and Anthropic simmered through late 2025 and early 2026, even as the Pentagon awarded Anthropic up to $200 million in a July 2025 contract. On February 27, President Trump directed all federal agencies to cease using Anthropic's technology with a six-month phase-out period. The same day, Secretary of Defense Pete Hegseth directed the Department of Defense to designate Anthropic a "Supply-Chain Risk to National Security," barring any contractor, supplier, or partner doing business with the U.S. military from commercial activity with Anthropic. By May 1, the Pentagon had agreed to use AI models from xAI, Google, and five other companies in classified systems, excluding Anthropic. On June 1, Anthropic filed an S-1 with the SEC for a proposed IPO. On June 9, Anthropic launched Mythos 5 and Fable 5. The Department of Commerce imposed export controls on both models on June 12, requiring Anthropic to restrict access to foreign nationals; Anthropic disabled access for all customers. On June 30, the Commerce Department lifted the restrictions, and Anthropic redeployed the models. Executive Order 14409, issued June 2, established a voluntary framework for government-industry evaluation of frontier AI models, explicitly not authorizing