California Governor Gavin Newsom signed Executive Order N-5-26 on March 30, 2026, establishing stricter safeguards for AI vendors doing business with the state, targeting algorithmic bias and data privacy, and requiring transparency and accountability standards. The order included a provision allowing the state to work around Pentagon supply-chain restrictions on certain AI models, creating a lane for California to continue working with Anthropic regardless of federal dynamics. A follow-on executive order on May 21, 2026, mandated formal studies on AI-driven labor market shifts affecting California workers. Anthropic had previously responded to Newsom’s AI Working Group in March 2025 with a submission emphasizing transparency standards. However, as of June 2026, no confirmed agreement between Anthropic and the California government has been verified.