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DOE Grant Termination Shutdown Show Down

Client Alert | 1 min read | 10.03.25

Yesterday, the Department of Energy (“DOE”) announced its termination of 321 grants and other awards supporting 223 energy projects.  The terminated awards were issued by the Office of Clean Energy Demonstrations, Office of Energy Efficiency and Renewable Energy, Office of Fossil Energy, the Grid Deployment Office, the Office of Manufacturing and Energy Supply Chains, and the Advanced Research Projects Agency-Energy.

DOE stated that the terminations were in furtherance of its May 15, 2025 policy requiring DOE to conduct additional diligence of existing grants on a case-by-case to “identify wasteful spending,” although public reporting indicates all of the canceled awards are in states with Democratic leadership.  At least some of the terminated awards appear to have already elapsed prior to DOE’s action. 

As with the May 2025 grant terminations, DOE’s announcement informed grant recipients that they have 30 days to administratively appeal the grant terminations.  That process is governed by 2 C.F.R. § 910.128, which articulates a recipient’s rights to submit a written appeal of a termination notice, request a meeting with DOE officials, and propose revisions to their grant awards that address the agency’s concerns.  Numerous companies appealed DOE’s terminations in May 2025; the agency’s review of those appeals largely remains ongoing.

In addition to pursuing administrative appeals, companies may elect to litigate their grant terminations, although the appropriate venue, cause of action, preferred remedy, and case strategy will vary on a case-by-case basis.  The Crowell & Moring team has been advising clients on these issues and emerging case law, and continues to monitor developments in the rapidly shifting grant litigation landscape.

Insights

Client Alert | 4 min read | 03.25.26

NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states....