Government Contractors NAICS 23, 54, 56, 61, 517, 5182, 7223

Mar 6, 2026 - US Defense Secretary Demands Unrestricted Access To AI Models

• US Defense Secretary Pete Hegseth has demanded that artificial intelligence (AI) firm Anthropic give the military unrestricted access to its AI model or face harsh penalties. Hegseth told Anthropic CEO Dario Amodei that the Pentagon will either cut ties and declare Anthropic a "supply chain risk," or invoke the Defense Production Act to force the company to tailor its model to the military's needs, according to the Axios news service. The Defense Production Act gives the president the authority to compel private companies to accept and prioritize particular contracts as required for national defense. The idea, a senior Defense official told Axios, would be to force Anthropic to adapt its model to the Pentagon's needs, without any safeguards.
• President Trump said in early January that he wants the advanced weapons that the US relies on for military dominance produced more quickly. The president has made military production a priority and has used tariffs as leverage to try to bring back more manufacturing to the US, according to Daily Fly, a Pacific Empire Radio Corporation news site. The US General Accounting Office (GAO) reported in 2025 that "major weapon costs continue to rise as DOD [Department of Defense] struggles to deliver innovative tech quickly." The GAO noted that "DOD plans to invest nearly $2.4 trillion to develop and acquire its costliest weapon programs. But it continues to struggle with delivering timely and effective solutions to the warfighter."

• Several companies are now marketing their products directly to federal government agencies as a way to survive the US Department of Government Efficiency's (DOGE) cost-cutting demands, according to the Axios news service. DOGE is expected to lean more heavily on third-party security vendors to help dismantle longstanding information silos, according to Axios. Axonius, an Israeli cybersecurity startup, told Axios that it has started pitching its product to agencies as a tool that can help them avoid the most severe DOGE audits. Many vendors have increased their lobbying activity in recent months, particularly with Trump-aligned lobbying firms. At least nine security and consulting firms, including Zscaler, Accenture, and Booz Allen Hamilton, have registered with Ballard Partners into 2025, according to congressional lobbying disclosures.
• US government contractor industry sales are forecast to grow at a 3.42% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy.