IntroductionFanconi anemia (FA) is an autosomal recessive disease characterized by progressive bone marrow failure, multiple congenital anomalies, and a high incidence of acute myelogenous leukemia. [1][2][3][4] Cells from FA patients are hypersensitive to the effects of DNA cross-linking agents, such as mitomycin C and diepoxybutane. 5,6 The disorder is genetically heterogeneous, with at least 7 different complementation groups. 7,8 The genes corresponding to group A (FANCA), C (FANCC), E (FANCE), F (FANCF), and G (FANCG) have been cloned. [9][10][11][12][13] Fanconi gene sequences show no significant homology to any known genes, and the functions of their gene products are unknown. 14,15 Hematopoietic precursor cells from children with FA of the C complementation group (FA-C) are excessively apoptotic and hypersensitive to a variety of cytokines known to induce apoptosis, including interferon ␥ (IFN␥). IFN␥ is a cytokine involved in host defense against viral infections and regulation of cell growth. 16 IFN␥ clearly plays a role in hematopoietic suppression and has been implicated in the pathogenesis of acquired aplastic anemia. [16][17][18][19][20][21][22] Cells with inactivating FANCC mutations are hypersensitive to the apoptotic effects of IFN␥, an effect that depends in part on an intact fas/fas-ligand pathway. [23][24][25][26] Specifically, exposure to low doses of IFN␥ in vitro primes a substantial fraction of FA-C progenitor cells to undergo apoptosis after subsequent exposure to fas ligand. Such doses of IFN␥ have no effect on normal hematopoietic progenitor cells. 23,24 Because of the influence of IFN␥ on the fas pathway, we sought to determine whether other IFN␥-inducible genes are hyperactive in FA-C cells. We carried out studies designed to analyze expression of IFN␥-inducible genes known to promote apoptosis and/or mitogenic inhibition in hematopoietic progenitor cells. We describe here studies revealing that the transactivators interferon regulatory factor-1 (IRF-1) and IFNstimulated gene factor 3 gamma subunit (ISGF3␥) and the cyclindependent kinase (cdk) inhibitor p21 WAF1 are expressed at constitutively higher levels in FA-C B lymphoblasts, low-density bone marrow cells (LDBMCs), and murine embryonic fibroblasts (MEFs), compared with cells expressing a normal FANCC. However, these proteins are expressed at normal levels in mature mutant fibroblasts, suggesting some degree of tissue or developmental stage specificity of FANCC function in control of these genes.IFN␥ exerts its effects, at least in part, through the Jak/signal transducer and activator of transcription (STAT) signaling pathway, 27,28 However, FA-C cells are defective in their ability to properly activate STAT1. 29 We show here that up-regulation of IFN␥-inducible genes occurs precisely in those cell types that fail to properly activate STAT1. For this reason, we hypothesized that loss of a STAT1-inducible transcriptional repressor may result in up-regulation of IFN␥-inducible genes in FA-C cells. Indeed, we found expression of the...