Status Update: Renewable Energy Tax Credits Under the Big Beautiful Bill

With the Senate Finance Committee (SFC) releasing the text of its version of the Big Beautiful Bill (the “Bill” or “BBB”) on June 16, 2025, we provide a comparison of the competing proposals from the House and the SFC. In short, the House version of the BBB featured three principal changes to the renewable energy tax credit provisions enacted under the Inflation Reduction Act of 2022 (IRA): (i) accelerated expiration dates and phase-outs, (ii) repeal of cash transfer elections and (iii) imposition of limitations for associations with FEOCs. The SFC version of the BBB, in turn, (i) eases some of the expiration dates and phase-outs, (ii) allows cash transfer elections to continue for the remaining periods of tax credit availability and (iii) provides important guidance on the restrictions relating to FEOCs.

Parallel Play: The U.S. Senate Finance Committee Releases Its Version of the “Big, Beautiful Bill”

On June 16, 2025, the U.S. Senate Finance Committee released its tax bill (the “Senate Bill”) to satisfy President Trump’s demand for “one big, beautiful bill.” It’s clear that the Senate Committee is playing in the same room as the House of Representatives, who passed its own version on May 10, 2025 (the “House Bill”). It’s just as clear, however, given the substantial divergence on points big and small between the Senate Bill and the House Bill that the two chambers have not yet progressed to cooperative play.

G7 Releases Critical Minerals Action Plan on the Heels of IEA’s 2025 Critical Minerals Outlook

The International Energy Agency (IEA), an inter-governmental organization that works with governments and industry to provide data and policy recommendations related to the energy sector, released its 2025 Global Critical Minerals Outlook in May 2025. The report marks its most expansive assessment yet of global mineral demand, supply vulnerabilities and the policy mechanisms needed to avoid future disruptions. It comes as markets reel from two years of price declines and geopolitical disruptions, with governments increasingly treating critical minerals as a matter of national security.

U.S. Department of Labor Withdraws 2022 Crypto Guidance—What It Means for 401(k) Plan Fiduciaries

On May 28, 2025, the U.S. Department of Labor Employee Benefits Security Administration (DOL) issued Compliance Assistance Release No. 2025-01 (the 2025 Release), officially rescinding its 2022 Compliance Assistance Release No. 2022-01 (the 2022 Release), which advised fiduciaries of 401(k) plans to “exercise extreme care” before including cryptocurrencies in the menu of investment alternatives available to participants under 401(k) plans and signaled an intent by the DOL to investigate plans that did so. The rescission represents a meaningful policy shift, effectively returning the DOL to a neutral posture—neither endorsing nor discouraging crypto—more aligned with the deregulatory stance of the Trump administration and consistent with broader trends across federal agencies aimed at encouraging responsible digital asset innovation.

Texas Signals Its Commitment to Leading America’s Nuclear Energy Future Through Industry-Friendly Legislation

Texas emerged from its 89th legislative session with a sweeping set of laws aimed at cementing the state’s leadership in advanced nuclear energy. Through the passage of HB 14, SB 1535 and SB 1061, lawmakers demonstrated a commitment to developing a robust nuclear ecosystem backed by regulatory reform, significant public investment and a forward-looking workforce strategy. This legislative package signals not only Texas’s confidence in nuclear power as a cornerstone of its future energy mix, but also its intent to create a nationally competitive environment for innovation and growth in the nuclear sector.

Water, Reused: Texas Reshapes Liability and Regulatory Rules on Produced Water, Leaves Ownership Questions Unanswered

The Texas Legislature passed a series of bills aimed at modernizing the legal and regulatory landscape for the handling and reuse of produced water—a byproduct of oil and gas operations. These developments address permitting, liability and inspection processes, with a focus on clarifying the respective roles and responsibilities among operators and regulators. The following update outlines key enacted and pending measures that are expected to influence compliance obligations, operational planning and strategic decisions related to produced water management across the state. Further, by promoting reuse, the legislation also supports efforts to ease pressure on Texas’s strained water supply, particularly in drought-prone and energy-intensive regions. However, legislation that would have clarified ownership of brine minerals failed to advance, leaving unresolved questions over who owns both brine minerals and produced water—an issue with growing importance as interest increases in extracting critical minerals like lithium from these resources.

Texas SB6 Establishes New Transmission Fees and Interconnection Standards for Large Load Customers and Co-Located Loads

On June 1, 2025, Texas Senate Bill 6 (SB 6), passed both chambers of the Legislature with bipartisan support and was sent to Governor Abbott for signature. Absent a veto by Gov. Abbott, the bill will become effective on September 1, 2025. SB 6 introduces significant changes to how large electricity users interact with the Electric Reliability Council of Texas (ERCOT) grid and marks a notable shift in regulatory policy to address concerns over grid reliability and cost allocations.

SCOTUS Holds Intent to Cause Economic Harm Is Not Required for Wire Fraud, Expanding Liability

On May 22, 2025, the U.S. Supreme Court decided Kousisis et al. v. United States, settling a Circuit split as to whether a federal fraud conviction can stand even if the defendant did not intend to cause the victim economic loss. In a decision written by Justice Amy Coney Barrett, with Justices Gorsuch, Thomas and Sotomayor authoring separate concurrences, the Court held it can.

SCOTUS Limits Scope of NEPA Reviews, Reinstates Approval of Uinta Basin Railway

In a highly anticipated decision for project developers and permitting agencies, the U.S. Supreme Court reversed the D.C. Circuit’s 2023 decision that had invalidated federal approval of the Uinta Basin Railway. In Seven County Infrastructure Coalition v. Eagle County, No. 23-975, ___ U.S. ___ (May 29, 2025), the Supreme Court clarified the limits of the National Environmental Policy Act (NEPA), reaffirming its procedural role and reenforcing the deference owed to agency judgments regarding the scope of environmental reviews.

President Trump’s Nuclear Executive Orders: What Clients Should Know

Today, President Trump signed four new Executive Orders (the “Orders”)—Ordering the Reform of the Nuclear Regulatory Commission, Reforming Nuclear Reactor Testing at the Department of Energy, Reinvigorating the Nuclear Industrial Base, and an order focused on Nuclear Energy for National Security—with a goal to quadruple U.S. nuclear power capacity by 2040. The overall goal of the Orders is to “expedite and promote to the fullest possible extent the production and operation of nuclear energy,”, which matches previous statements by Secretary of Energy Chris Wright that “America must lead the commercialization of affordable and abundant nuclear energy.”

The Proposed “Big Beautiful Bill” May Disrupt Sports Team Investment Strategy

The recently proposed “Big, Beautiful Bill” (BBB), currently under preliminary markup in the Senate Finance Committee, includes a suite of tax provisions aimed at deficit reduction, corporate reform and base-broadening. Of particular relevance to the sports investment community is a targeted revision to Internal Revenue Code (IRC) Section 197, which governs the amortization of intangible assets. The bill, as drafted, would restrict the 15-year amortization treatment for “specified sports franchise intangibles”—an essential feature underpinning the economics of sports team acquisitions. Investors, private equity sponsors and multi-asset portfolio managers engaged in sports M&A should take immediate note.

New DOJ Initiative Expands FCA Use to Enforce Civil Rights Compliance and Target DEI Initiatives

In a memorandum issued by Deputy Attorney General Todd Blanche on May 19, 2025, the U.S. Department of Justice (DOJ) announced the creation of the Civil Rights Fraud Initiative, a new enforcement effort that uses the federal False Claims Act (FCA) to pursue investigations and prosecutions of recipients of federal funding—including institutions of higher education, research centers and federal contractors—who allegedly falsely certify their compliance with federal civil rights laws. The FCA is known as the government’s “primary weapon against fraud, waste, and abuse,” because FCA violations can yield treble damages plus five-figure penalties for each false claim.

DOJ Announces Shift in Approach to Prosecuting Corporate Crime

On May 12, 2025, the Criminal Division of the U.S. Department of Justice issued a Memorandum outlining its new approach to white-collar criminal enforcement under the second Trump administration. Observing that “overbroad and unchecked corporate and white-collar enforcement burdens U.S. business and harms U.S. interests,” the Memorandum represents a notable shift in the Department’s tone.

EDGAR Next Implements Significant System Updates

Background On September 27, 2024, the Securities and Exchange Commission (SEC) adopted changes to the SEC’s Electronic Data Gathering, Analysis and Retrieval (EDGAR) system intended to modernize the EDGAR system by improving security measures, enhancing filers’ ability to manage their EDGAR accounts and more (collectively referred to as EDGAR Next). The new rules and form amendments became effective March 24, 2025, and will:
• amend Regulation S-T Rules 10 and 11, and Form ID; and

​• update the EDGAR Filer Manual.

847 Awaiting Takeoff: DCSA Issues Guidance on Expanded Scope of FOCI Assessments

Section 847 of the National Defense Authorization Act for FY 2020 directs the Department of Defense (DoD) to move forward with proposing a new Defense Federal Acquisition Regulation Supplement (DFARS) rule that would expand the scope of companies subject to its foreign ownership, control, and influence (FOCI) evaluations. The anticipated DFARS rule would require bidders and subcontractors participating in DoD contracts valued at over $5 million, subject to certain exceptions, to disclose FOCI details during the bid or proposal stage and update those details when changes to their ownership structure that implicate FOCI concerns occur. Per guidance issued by the Defense Counterintelligence and Security Agency (DCSA), the rule is expected to be published within the next 12 to 18 months.

Navigating Recent Government Contract Terminations—Key Considerations and Best Practices

Contracting Officer’s Discretion and Legal Boundaries
The federal government possesses broad authority to terminate contracts for the government’s convenience under Federal Acquisition Regulation (FAR) 52.249-2. This rule, however, does not excuse bad faith or animus-driven terminations. It also does not mean that any government official can terminate a contract or a series of contracts for reasons of efficiency. The Court of Claims in Torncello v. United States, 681 F.2d 756 (Ct. Cl. 1982), emphasized that terminations must not be executed in bad faith or to secure a better deal elsewhere. Similarly, in Krygoski Construction Co. v. United States, 94 F.3d 1537 (Fed. Cir. 1996), the Federal Circuit held that terminations motivated by bad faith or abuse of discretion constitute a breach of contract. Of course, it is important to note that the discretion to terminate under FAR 52.249-2 belongs to the Contracting Officer and not the government more broadly.

USTR Section 301 Shipbuilding Reprised

On April 17, 2025, the Office of the U.S. Trade Representative (USTR) published a Notice of Action and Proposed Action in its Section 301 investigation finalizing aspects of USTR’s responsive measures to China’s targeting for dominance of the maritime and shipbuilding industries. The Notice narrows the fees and service restrictions USTR proposed in March, as discussed in our previous article. Fees on Chinese-owned and operated vessels will start to take effect within 180 days, with incremental increases over three years. Meanwhile, in response to substantial comments, USTR delayed and limited the scope of its service restrictions on exports, starting with a requirement that one percent of all exports by vessel of liquified natural gas (LNG) be on U.S.-flagged and U.S.-operated vessels effective April 2028, and on U.S.-built, U.S.-flagged and U.S.-operated vessels starting in 2029.

Global Capability Centers in 2025: Key Legal and Strategic Considerations

Global Capability Centers (GCCs) have become strategic hubs for multinational corporations, financial institutions and other organizations because they can provide centralized control over high-value technology and back-office functions.

Navigating Tariff Developments in Government Contracting

Recent shifts in U.S. trade policy, including the wide imposition of tariffs on imports from most trade partners, have introduced complexities for government contractors that most companies have either never considered or have not thought about in decades. These developments necessitate a thorough understanding of the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS) clauses related to cost recovery, duties and taxes. Prudent government contractors are proactively assessing their contracts and supply chain obligations to mitigate potential financial impacts and maximize the opportunities to recover tariff impacts.

Executive Order on Accreditation and Injunctions of Dear Colleague Letter Impact DEI in Higher Education

On April 23, 2025, President Trump issued Executive Order 14279 (EO) directing the Secretary of Education (the “Secretary”) to “hold accountable” higher education accreditors that “engage in unlawful discrimination in accreditation-related activity under the guise of ‘diversity, equity, and inclusion’ initiatives.” Accreditation is a process where an independent accrediting agency evaluates a school or program to ensure it meets certain educational standards. The EO asserts that “accreditors have remained improperly focused on compelling adoption of discriminatory ideology, rather than on student outcomes” and sets out criteria for the Secretary to potentially remove recognition from accrediting bodies.

The Ironic Impact of FinCEN’s New CTA Regulations on New York’s LLC Transparency Act

The NYS LLC Transparency Act (the “New York Act”) became law in January 2024 and takes effect on January 1, 2026. When in effect, it would require limited liability companies formed or qualified to do business in New York to report their beneficial ownership to a database to be created and administered by the New York Secretary of State.

Comparing Developments in U.S. and EU Strategies to Combat Forced Labor

In recent years, a multinational focus on preventing forced labor within supply chains has shaped due diligence requirements for companies worldwide. Recent changes to global policies and potential shifts in enforcement appetite are set to reshape these requirements once again.

President Trump Initiates Section 232 Investigations into Pharmaceuticals, Semiconductors, Critical Minerals and Trucks

The Trump administration has intensified its America First Trade Policy initiatives by announcing three new investigations under Section 232 of the Trade Expansion Act of 1962 by the Department of Commerce. As foreshadowed in the administration’s Day 1 Executive Order, last week Commerce announced the initiation of investigations into whether imports of pharmaceuticals, semiconductors and critical minerals threatened to impair national security. And on April 23, 2025, Commerce announced the initiation of a fourth Section 232 investigation into imports of trucks. These follow previously announced and ongoing investigations into copper and lumber, as well as existing section 232 duties on steel, aluminum and light passenger vehicles.

DOJ Releases Its Data Security Program Compliance Guide

On January 8, 2025, the U.S. Department of Justice (DOJ) issued its final rule (28 C.F.R. Part 202) implementing former President Biden’s Executive Order 14117 (Order), “Preventing Access to Americans’ Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern.” The Order and final rule create the Data Security Program (DSP), which provides for restrictions or prohibitions on access to U.S. government-related data and Americans’ bulk sensitive data by specified countries of concern or covered persons. The regulations largely took effect on April 8, 2025, but additional affirmative compliance requirements for U.S. persons will take effect on October 6, 2025.

CTA Deadline Approaching for Foreign Reporting Companies

The Corporate Transparency Act (CTA) was adopted by Congress in January 2021 and became effective on January 1, 2024. Under the CTA and the initial regulations implementing it, “reporting companies” (corporations, LLCs, limited partnerships, some trusts, and certain other entities formed or first registered (i.e., qualified) to do business in the United States, its states or territories) were required to file information as to their “beneficial owners” in a non-public database managed by the Financial Crimes Enforcement Network (FinCEN), part of the U.S. Department of the Treasury. Reporting companies created or (if foreign) first registered in or after 2024 were required to file starting January 1, 2024. Reporting companies created or (if foreign) first registered prior to January 1, 2024, were initially required to file starting January 1, 2025. The CTA and regulations exempt numerous entities from being reporting companies subject to the strictures of the CTA.

State Climate Laws and Litigation Face Federal Pushback Under New Executive Order

On April 8, 2025, President Trump issued Executive Order 14260, Protecting American Energy From State Overreach. Framed as part of the Administration’s broader strategy of unleashing American energy, the Order directs federal agencies to eliminate what it calls “illegitimate impediments” posed by state and local governments to the production, development and use of traditional energy resources—oil, natural gas, coal, hydropower, geothermal, biofuel, critical minerals and nuclear energy.

California SB 813 Proposes Landmark Safe Harbor for AI Development Through Certification

California Senate Bill 813, authored by Senator Jerry McNerney, a former four-term member of the U.S. House of Representatives and author of the federal “AI in Government Act,” proposes the establishment of Multistakeholder Regulatory Organizations (MROs)—private entities which would be designated by the California Attorney General to certify the safety and compliance of AI models and applications. These certifications would serve not only as new governance benchmarks but also provide developers with a powerful affirmative defense against civil liability in certain legal claims.

The EU’s Cyber Resilience Act: New Cybersecurity Requirements for Connected Products and Software

The EU has adopted Regulation (EU) 2024/2847 (Cyber Resilience Act or CRA), which introduces new cybersecurity requirements for connected products, software and their remote data processing solutions. The CRA entered into force on December 10, 2024, and its main obligations will apply from December 11, 2027. From this date, “products with digital elements” (including hardware, software and supporting services) that do not comply with the CRA’s requirements cannot be sold in the EU.

Supreme Court Issues New RICO Decision

On April 2, 2025, the Supreme Court issued a decision in Medical Marijuana, Inc. v. Horn, resolving a circuit split as to whether a plaintiff may recover damages under RICO for business or property harm that derives from a personal injury.

Share Transfer Tripwire: Some Hidden Risks in Deed of Adherence Clauses

Certain provisions commonly found in joint venture and shareholder documentation for early-stage and investment companies are so ubiquitous that they are often accepted without negotiation or full consideration of their wider implications. One such clause, frequently included in the articles of association of English early-stage companies, provides that if a person wishes to transfer shares to a party not already bound by the existing shareholders’ agreement (SHA), then the transferor must ensure that the transferee executes a deed of adherence agreeing to be bound by the SHA (Deed of Adherence) as a condition of the transfer.

U.S. Department of Justice Curtails “Regulation by Prosecution” in Digital Asset Enforcement

What the New Policy Says
On April 7, 2025, Deputy Attorney General Todd Blanche issued a Memorandum titled, “Ending Regulation by Prosecution,” which outlines changes to the approach of the U.S. Department of Justice (DOJ) to digital assets and criminal enforcement. The stated goal of the Memorandum, which implements Executive Order 14178 (Strengthening American Leadership in Digital Financial Technology), is to effectuate President Trump’s directive that DOJ “end the regulatory weaponization against digital assets.”

Lashify v ITC: The Federal Circuit Redefines the Domestic Industry Requirement

Complainant Lashify, Inc. appealed an adverse decision by the U.S. International Trade Commission (Commission) which found that Lashify failed to satisfy the economic prong of the domestic industry requirement with respect to three asserted patents. In the underlying investigation, the presiding Administrative Law Judge “excluded expenses relating to sales, marketing, warehousing, quality control, and distribution.” Lashify, Inc. v. Int'l Trade Comm'n, 130 F.4th 948, 955 (Fed. Cir. 2025). On review, the Commission majority agreed, reasoning that it “‘is well settled that sales and marketing activities alone cannot satisfy the domestic industry requirement’” and that “expenses relating to warehousing, quality control, and distribution … are akin to those incurred by mere importers.”

U.S. Department of Energy Reopens Funding Initiative for Gen III+ Small Modular Reactors with Key Modifications Reflecting Trump Administration Priorities

On March 24, 2025, the U.S. Department of Energy (DOE) reopened its funding initiative for Generation III+ Small Modular Reactors (Gen III+ SMRs) with modifications aligned with the Trump administration’s policy priorities and energy policy objectives. The modified funding initiative focuses on regulatory streamlining, deregulation and the acceleration of energy infrastructure, while deprioritizing community-based initiatives. As part of this shift, DOE has removed requirements related to community engagement and workforce equity and clarified that award selection will be based solely on technical merit.

The Battle Over Climate Superfund Laws: Legal Challenges in Vermont and New York

States are increasingly turning to “Climate Superfund” laws as a potential mechanism to offset the growing costs of climate-related disaster recovery and the construction of more climate change-resilient infrastructure. These laws aim to hold select energy companies financially responsible for infrastructure resiliency investments and climate-related damages based on prior greenhouse gas (GHG) emissions. However, they raise significant constitutional questions, particularly concerning state authority over global and interstate climate issues and the retroactive imposition of liability for past, lawful activities. The first two states to enact such laws—Vermont and New York—are already defending them in court against challenges rooted in federal preemption and constitutional limitations.

Trump Launches $1 Billion Plus Investment Fast Track with New Executive Order

Against the backdrop of rising global competition and ongoing industrial policy debates, on March 31, 2025, President Trump signed Executive Order (EO) 14255, “Establishing the United States Investment Accelerator,” aimed at encouraging large-scale domestic and foreign investment.

EPA Announces Sweeping Deregulatory Agenda: The Complete Set of EPA’s 31 Actions and Affected Environmental Regulations

In what it called “the greatest and most consequential day of deregulation in U.S. history,” the Environmental Protection Agency (EPA) announced its most expansive deregulatory initiative to date on March 12, 2025. Through a series of press releases and a public address by Administrator Lee Zeldin, the agency outlined 31 planned actions aimed at rescinding, revising or reconsidering existing environmental rules and policies. Each of the press releases, as well as the underlying regulations at issue, are linked below.

SEC Ends Its Climate-Related Disclosure Requirements

On March 6, 2024, the Securities and Exchange Commission (SEC) adopted final rules imposing new climate-related disclosure requirements on domestic and foreign registrants with respect to their annual reports and registration statements (Rules). Compliance was set to begin as early as the annual reports for December 31, 2025, for calendar-year-end issuers classified as large-accelerated filers.

New Federal Anti-Hazing Requirements for College Campuses

Collection of Data Regarding “Hazing Incidents”: January 1, 2025
The federal “Stop Campus Hazing Act” (the Act) amends a subsection of the Clery Act by expanding the annual security report (ASR) reporting requirements and requiring covered colleges and universities to include statistics of “hazing incidents” which occurred within the school’s Clery geography and were reported to campus securities or local police agencies.

Forthcoming Enterprise-Wide and Egregious Violations from California’s Division of Occupational Safety and Health

On March 25, 2025, the California Department of Industrial Relations will hold an advisory committee meeting to solicit input on proposed amendments to Division of Occupational Safety and Health (Cal/OSHA) regulations regarding so-called “enterprise-wide” and “egregious” violations.

Anti-DEI Executive Orders Are Enforceable, for Now, After Fourth Circuit Lifts Preliminary Injunction

On March 14, 2025, the U.S. Court of Appeals for the Fourth Circuit granted the Government’s motion for a temporary stay of a district court’s nationwide preliminary injunction against two Executive Orders that target diversity, equity, and inclusion (DEI) initiatives (the Anti-DEI EOs). The stay, in the case NADOHE v. Trump, was granted pending resolution of the Government’s appeal of the preliminary injunction. The order states that the court will set an expedited briefing schedule for that appeal.

U.S. Bankruptcy Court Confirms Nonconsensual Third-Party Releases May Be Recognized Under Chapter 15 of the Bankruptcy Code

On June 27, 2024, the U.S. Supreme Court issued a long-awaited ruling regarding the validity of nonconsensual third-party releases in the chapter 11 plan of pharmaceutical company Purdue Pharma. In Harrington v. Purdue Pharma L.P., the Supreme Court held that absent consent from the affected claimants (i.e., holders of more than $40 trillion in mass tort claims), the Bankruptcy Court lacked the power to approve a plan provision releasing Purdue’s founders, the Sackler family, from such alleged liabilities. In reaching that result, the Supreme Court concluded that nonconsensual third-party releases fall outside the scope of section 1123(b) of the Bankruptcy Code, which limits the types of provisions a bankruptcy plan may include. It also reasoned that nonconsensual third-party releases contravene section 1141(d), which provides a “discharge” from liability only to a “debtor.”

U.S. Bankruptcy Court Agrees to Enforce English Three-Step, with Third-Party Releases, Used by Mexican Auto Financer

On February 24, 2025, U.S. Bankruptcy Judge Michael E. Wiles granted “recognition” of an English insolvency proceeding and enforced an order approving an English scheme of arrangement for a new shell entity created in England by its Mexican parent solely to effectuate an English restructuring that provides consensual and non-consensual third-party releases of the Mexican parent company, even though the new entity had little connection with England. In re Mega NewCo Limited, No. 24-12031 (MEW), 2025 WL 601463 (Bankr. S.D.N.Y. Feb. 24, 2025) (“in light of the support of all of the affected parties and their overwhelming consent to the English Scheme Proceeding and the approval of the Scheme of Arrangement, and the other factors that I have cited, I see no cause in this particular case to look past the form of the transactions or to pursue theoretical issues that no affected party wishes to pursue”).

U.S. Tariffs on Non-USMCA-Compliant Products Take Effect; Increased Tariff Rate on China Imposed

Between March 4, 2025, and March 6, 2025, U.S. trade policy in North America changed course multiple times as the Trump administration initially implemented previously paused tariffs on imports from Canada and Mexico, and two days later, suspended tariffs on all Canadian and Mexican imports that meet the rules of origin for preferential tariff treatment of the United States-Mexico-Canada Agreement (USMCA). The Trump administration also increased across-the-board tariffs on imports from China to 20%, which remain in place. These measures, introduced through a novel use of the International Emergency Economic Powers Act (IEEPA), come after an initial 30-day delay in imposing tariffs on the North American trading partners on February 3, 2025.

Council on Environmental Quality Rescinds NEPA Regulations

As was widely anticipated, the Council on Environmental Quality (CEQ) recently rescinded its National Environmental Policy Act (NEPA) implementing regulations, eliminating the uniform framework that has governed NEPA compliance for decades. CEQ’s Interim Final Rule, published on February 25, 2025, removes 40 C.F.R. Parts 1500–1508 from the Code of Federal Regulations, dismantling longstanding procedural requirements for federal environmental reviews.

Second Circuit Affirms Priority Payment of Broker Fees Included in Aircraft Leases Utilizing the “Billing-Date Approach” Under Bankruptcy Code § 365(d)(5)

Airlines will always need access to new aircraft to expand and replace their fleets. When an airline utilizes an intermediary, such as a broker, it must pay a commission to lease or purchase aircraft. Depending on the number of aircraft obtained, commissions may be very expensive, necessitating payments over time. But what happens if the airline files for bankruptcy before paying out the commissions? If not properly structured to be included as part of the lease payments, the broker may be left with an unsecured claim which may be paid with pennies on the dollar. However, if the fees are included as part of the rent under the lease, they may qualify as priority claims, until the lease is rejected.

Challenging Trump 2.0 En Masse Contract Terminations

In recent weeks, the second Trump administration has begun en masse terminations of federal contracts for the government’s convenience-as-a-budget-cutting tactic. Contractors with the U.S. Agency for International Development have been most affected by this tactic, where the vast majority of the agency’s contracts have been terminated.

Reshaped Priorities: Navigating Changes to FCPA and FARA Enforcement

On February 10, 2025, President Donald Trump signed an Executive Order directing the Department of Justice (DOJ) to pause enforcement of the U.S. Foreign Corrupt Practices Act (FCPA), citing concerns over the competitive disadvantage that it imposes on U.S. businesses. Just days earlier, Attorney General Pam Bondi issued a memorandum signaling a narrowing of DOJ enforcement priorities with respect to the FCPA and Foreign Agents Registration Act (FARA). This alert provides an overview of the current state of FCPA and FARA enforcement, discussing the compliance implications of new DOJ policy for companies engaged in cross-border trade.

California Governor Releases 2025 Budget Proposal to Move Banks and Financial Corporations to Single-Sales-Factor Apportionment

On January 10, 2025, California Governor Gavin Newsom released his January Budget Proposal for the 2025 – 2026 fiscal year. Notably, Governor Newsom’s budget would increase tax revenue by requiring banks and financial corporations to move from an equally weighted three-factor formula, comprising property, payroll and sales factors, to a single-sales-factor formula for purposes of apportioning income to the state. Agricultural and extractive businesses would continue to use the three-factor formula. The proposed change would take effect immediately, beginning with tax year 2025. A copy of the trailer bill is available here.

Trump 2.0: The Future of the EU-U.S. Data Protection Framework and Trans-Atlantic Data Transfers

The issue of transfers between the European Union or United Kingdom and the United States has long been fraught with turbulence. From the invalidation of Safe Harbor in 2015 to the downfall of Privacy Shield in 2020, each mechanism designed to ease the compliance burden of transatlantic data sharing has faced scrutiny culminating, more often than not, in legal challenges before the Court of Justice of the European Union (CJEU).

White House Seeks Public Input on AI Action Plan: What Stakeholders Need to Know

On January 20, 2025, President Trump revoked Executive Order (EO) 14110, entitled “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (AI),” which was issued by former President Biden and aimed at establishing a regulatory framework for AI oversight. On January 23, 2025, President Trump issued EO 14179, entitled “Removing Barriers to American Leadership in Artificial Intelligence,” that proposed the creation of an AI Action Plan.