DORA Now Fully in Effect: Financial Entities and Their Service Providers Reach Critical Milestone

Since the EU Digital Operational Resilience Act (DORA) Regulation (EU) 2022/2554 came into effect on January 17, 2025, EU financial entities and providers of information and communications (ICT) services (ICT Providers) have shifted from compliance planning to active implementation of both internal and external measures in line with the new requirements introduced by DORA—by remediating contracts for ICT services, completing the financial entities’ registers of information detailing the contractual arrangements between the financial entity and its ICT Providers. However, the subcontracting requirements under DORA were significantly delayed, but the Commission Delegated Regulation (EU) 2025/532 supplementing Regulation (EU) 2022/2554 of the European Parliament and of the Council with regard to regulatory technical standards specifying the elements that a financial entity has to determine and assess when subcontracting ICT services supporting critical or important functions (Subcontracting RTS) have now been published and entered into force on July 22, 2025.

Navigating New Waters: Getting Ahead of Extended Producer Responsibility Laws

Companies across the United States are working diligently to understand their obligations and comply with packaging-related Extended Producer Responsibility (EPR) laws recently enacted by several states, including California (SB54), Colorado (HB22-1355), Maine (LD1541), Maryland (SB901), Minnesota (HF3911), Oregon (SB582B) and Washington (SB 5284). Other states, including Connecticut (HB06225), Hawaii (HB750), Illinois (HB4064), Massachusetts (H.833), New Jersey (SB426), New York (S1460), Rhode Island (S0939) and Tennessee (SB573) have recently proposed EPR bills, though some have been vetoed.

From Paychecks to Perks: Navigating New OBBBA Rules on Compensation

The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, may have made headlines for its political theatre, but included in the OBBBA are changes that will significantly reshape the compensation and employee benefits landscape. While many of these changes only become effective in 2026, proactive employers should begin planning now to address these changes, communicating these changes to employees and modifying plan documents and pay practices to accommodate these changes. Failure to adequately address these changes could lead to missed tax savings for employers and hamper employers’ efforts to recruit and retain key talent.

Judge Starr’s Ruling in Metals.com Case Raises Jurisdictional Questions About CFTC Authority

In CFTC v. TMTE Inc. (Metals.com), Judge Brantley Starr of the U.S. District Court for the Northern District of Texas issued an opinion that casts doubt on whether the Commodity Futures Trading Commission (CFTC) can assert antifraud jurisdiction over transactions involving gold and silver bullion under the Commodity Exchange Act (CEA). While the case involves alleged misconduct in the sale of precious metals to retirees, the court’s reasoning—if adopted more broadly—could implicate the scope of the CEA with respect to other non-agricultural products, including digital assets, interest rates, foreign exchange, energy products and energy attributes.

CFTC Permits Listing of Perpetual Futures on BTC and ETH: A Regulatory Milestone for U.S. Crypto Derivatives

Perpetual futures contracts—or “perps”—are a form of derivative that, unlike traditional futures, do not have an expiration date. They have become the dominant form of crypto derivatives trading globally, but until now, have largely been unavailable on regulated U.S. exchanges. On April 21, 2025, the Commodity Futures Trading Commission (CFTC) issued a 30-day Request for Comment (RFC) seeking public input on the risks and characteristics of perpetual derivatives. The comment period closed on May 23, 2025. While the RFC generated a broad range of industry and academic responses, the CFTC has not yet issued any new rulemaking, interpretive guidance or staff advisory in response.

New UK Corporate Offense of “Failure to Prevent Fraud” Under Economic Crime and Corporate Transparency Act 2023: What Companies Need to Be Ready

The long-awaited new corporate offense of Failure to Prevent Fraud (FTPF) under the UK’s Economic Crime and Corporate Transparency Act 2023 (ECCTA) will come into force on September 1, 2025. The ECCTA was born out of lobbying efforts by the UK white collar community for over a decade to improve corporate accountability. The ECCTA extended corporate criminal liability for economic crimes so as to hold corporations liable where an offense is committed by a senior manager of the corporation. Previously, the law required that an offense was committed by the “directing mind and will” of a corporation.

Power Purchase and Interconnection Agreements for Data Centers

Data centers—particularly those supporting generative artificial intelligence (AI)—are rapidly emerging as one of the most significant sources of electricity demand globally. In response, power procurement and grid access have become mission critical considerations for developers and tenants alike. As these facilities seek scalable, uninterrupted and cost-effective power, the negotiation of power purchase agreements (PPAs) and interconnection agreements plays a central role in determining both operational reliability and long-term economic viability. This article outlines key considerations for structuring these agreements, with a focus on how siting decisions, load characteristics and regulatory constraints shape risk allocation and commercial strategy.

McGowan v. Comm’r Provides Cautionary Tale of Too Good to Be True Insurance Tax Scheme

“Even if we could turn back, we’d probably never end up where we started.” Dr. Peter E. McGowan, a Toledo dentist, would surely like to turn back and reconsider the day in 2010 that he lunched at a Toledo-area country club with an insurance agent, his health insurance advisor, an accountant and two attorneys. The lunch launched the dentist into an alternative universe not dissimilar to the surreal landscape in which Aomame, the main character of 1Q84 (the popular Haruki Murakami novel), found herself after she descended an emergency staircase from an elevated highway. And while Aomame ultimately scaled the same stairway to find her way back, McGowan and his C corporation dental practice were left in a fractured reality, incurring collective taxes and penalties totaling over 89% of the income that he sought to shelter. Although the numbers involved in McGowan’s odyssey were relatively modest, the case provides a cautionary tale for those who might otherwise go down the rabbit hole.

Artificial Intelligence and Data Centers: A View from the UK and EU

Since the 2024 UK general election, artificial intelligence (AI) has been a top priority on the government’s agenda. The King’s Speech in July 2024 signaled a cautious approach, focusing on AI regulation and safety, but by October, the government had made sweeping announcements of foreign investment in data centers at the UK’s International Investment Summit. The government has since introduced incremental policy developments addressing data center planning and expansion. This momentum continued into 2025, with the release of the government’s AI Opportunities Action Plan (the Plan), published on January 13, 2025, detailing new initiatives and strategic direction.

Congress Passes GENIUS Act: Landmark Framework for Payment Stablecoins Will Reshape U.S. Digital Asset Regulation

In a landmark development for the digital asset industry, on July 17, 2025, the U.S. House of Representatives passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), following prior Senate approval in June. As we described in our prior client alert, the GENIUS Act creates the first unified U.S. legal framework for payment stablecoins. Once signed by President Trump and fully implemented by regulators, it will provide long-awaited clarity for the market and significantly reshape the regulatory landscape for payment stablecoins in the United States.

New Bill Seeks to Provide Uniform Gaming Regulation Under IGRA for Two Texas Tribes

A new piece of federal legislation has been introduced to address a decades-old inconsistency in federal law relating to Tribal gaming regulations for two Tribes located in Texas. In 1987, Congress enacted the Ysleta del Sur Pueblo and Alabama-Coushatta Indian Tribes of Texas Restoration Act (Restoration Act), which restored the trust relationship between the two Tribes and the U.S. government, while reserving for the State of Texas the right to prohibit certain kinds of gaming activities within the Tribes’ reservations. A year later, Congress enacted the Indian Gaming Regulatory Act (IGRA), which expressly authorized Tribal gaming on Indian lands as a matter of federal law and allowed a limited role for states by requiring Tribal-state gaming compacts for certain gaming activities.

Texas Cyber Command: New Authority for Statewide Cybersecurity Coordination

On June 2, 2025, Texas Governor Greg Abbott signed House Bill 150 into law, establishing the Texas Cyber Command, a component institution of the University of Texas System focused on strengthening cybersecurity across Texas government. Rather than adding a new regulator, the law establishes a centralized authority to coordinate cyber operations, threat response and readiness across public-sector entities.

Plasticizer PIP (3:1) Ban Is Still a Year Away, but Affected Companies Should Act Today

As a plasticizer and flame retardant popularly used in numerous products, such as hydraulic fluids, lubricating oils, paints, industrial coatings, synthetic rubber and PVC, some companies may not even be aware that their products contain phenol, isopropylated phosphate (3:1) (PIP (3:1)). Pursuant to the Environmental Protection Agency (EPA)’s 40 C.F.R. § 751, promulgated as part of a final rule published in October 2024, articles containing PIP (3:1) will no longer be permitted in interstate commerce beginning October 31, 2026. Although that date is 15 months away, companies who use PIP (3:1) in their articles or manufacturing, or treat their articles with plasticizers, should be aware of this impending deadline and begin phasing out PIP (3:1) in both their finished products and supply chain.

Real Estate Tokenization: Recent Developments in New Jersey and Dubai

Real estate is traditionally an illiquid asset class that requires significant capital investments and involves time-consuming and expensive transaction processes reliant upon numerous intermediaries. New technologies, including blockchain platforms and smart contracts, will bring greater efficiencies and lower costs. Tokenization of real estate assets, or the process of converting traditional assets to a digital form, will be impactful because it will streamline transactions and lower the barriers to investment by enabling ownership interests to be divided across a wider pool of investors. Deloitte has predicted that the global-tokenized-real-estate market could grow from around $300 billion currently to as high as $4 trillion in 10 years.

Department of Energy Seeks Input for the 2026 Energy Critical Materials Assessment

On June 25, 2025, the Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy released a Request for Information (RFI) to gather input for the 2026 Energy Critical Materials Assessment (CMA). The assessment will consider materials used in a broad range of technologies, including energy production, transmission and storage, as well as end-use applications in vehicles, buildings, industry, transportation and computing—such as semiconductors and electronics. Comments are due on July 25, 2025.

Executive Orders Aim to Boost Drones, eVTOLs, Counter-UAS and Supersonic Flight

On June 6, the White House issued three executive orders (EOs) directing the Federal Aviation Administration (FAA) to take action to expand commercial drone (UAS) operations and strengthen counter-drone capabilities. The EOs also direct the FAA to establish an electric-vertical-takeoff-and-landing (eVTOL) integration pilot program focused on advanced air mobility, cargo transport and medical response, and to lift an over 50-year ban on civil supersonic flight over land.

Circuit Split No More: U.S. Supreme Court Upholds FCC Universal Service Fund Authority

Schools, hospitals and libraries in poor and rural areas and millions of low-income American consumers can breathe a sigh of relief: they will continue to receive uninterrupted service subsidies through the Federal Communications Commission’s (FCC) Universal Service Fund (USF or Fund). On June 27, 2025, the U.S. Supreme Court issued a significant decision in FCC v. Consumers’ Research affirming the constitutionality of Congress’s delegation of authority to the FCC to administer the USF, thereby upholding the funding mechanism used to deliver subsidized phone, broadband and telecommunications service to millions of American consumers and community institutions. By a 6-3 vote, the Court reversed a ruling by the Fifth Circuit Court of Appeals that held both Congress’s delegation of USF authority to the FCC and the FCC’s subsequent delegation of its authority to a private administrator violated the Constitution (read our article on the Fifth Circuit’s July 2024 decision here). The decision also resolved a split in the circuit courts, as the Sixth and Eleventh Circuit Courts of Appeal had decided in favor of the FCC in similar proceedings.

California Enacts Landmark CEQA Reforms to Accelerate Housing and Infrastructure Development

On June 30, 2025, California Governor Gavin Newsom signed two major bills—Assembly Bill 130 (AB 130) and Senate Bill 131 (SB 131)—into law, enacting sweeping reforms to the California Environmental Quality Act (CEQA). Passed as part of the state budget package, these bills aim to reduce regulatory barriers and litigation risks for new infill housing and other community-oriented infrastructure projects. Together, AB 130 and SB 131 represent “the most significant reforms to CEQA ever considered by the Legislature,” according to State Sen. Scott Wiener.

Congress Sends Big, Beautiful Bill for President’s Signature: Status of Clean Energy Tax Credits

On July 3, 2025, Congress approved passage of the Big, Beautiful Bill (the “Bill” or “BBB”), with a number of provisions that will significantly impact the future of the renewable energy tax credits enacted by the Inflation Reduction Act of 2022 (IRA). President Trump is expected to sign the BBB into law tomorrow, July 4, 2025. A prior client alert discussed the differences between the Senate Finance Committee (SFC) version of the Bill initially released on June 16, 2025, and the version approved by the House of Representatives on May 22, 2025. A later client alert highlighted several changes in the version of the Bill that was advanced to the full Senate. In the discussion below, we provide some observations as to latest developments from the negotiation process for the BBB.

The GENIUS Act: A New Federal Framework for Stablecoin Issuers

On June 18, 2025, the U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). This passage followed a successful cloture vote earlier in May. The bill obtained significant support, with 68 senators voting in favor. The bill will now move to the U.S. House of Representatives, where it is expected to pass due to its bipartisan support.

Floating Charges Under English Law and Their U.S. Counterparts: A Comparative Insight for Cross-Border Lenders

Creditors under English law can take many forms of security, including fixed charges, mortgages and assignments. One of the more unique features of English security is the floating charge. The English legal system distinguishes between fixed and floating charges, meaning they have different legal characteristics, control thresholds and consequences in insolvency. Floating charges do not have a direct equivalent in many other jurisdictions, including the United States.

Texas Enacts App Store Accountability Act: Overview and Initial Considerations

On May 27, 2025, Texas Governor Greg Abbott signed into law Senate Bill 2420, also known as the App Store Accountability Act. The law will take effect on January 1, 2026, and requires businesses operating app stores to verify user ages at account creation, obtain parental consent for minors before allowing app downloads or in-app purchases, and share age and consent information with developers.

VietJet v FW Aviation: Latest Developments

On 24 June 2025, the Court of Appeal dismissed in full the appeal brought by VietJet Aviation Joint Stock Company (“VietJet”) against FW Aviation (Holdings) 1 Limited (“FWA”) in relation to an ongoing aircraft leasing dispute, upholding the judgments made by the High Court in July and October 2024.

Bipartisan Passage of House Bill 40 Clarifies Texas Business Court’s Jurisdiction

On June 2, 2025, the Texas Senate passed House Bill 40 (HB 40), a bill that proposes significant changes to the state’s newly established Business Court. The bill expands the types of cases that the Business Court may hear, requires the Texas Supreme Court to adopt rules governing jurisdictional determinations and introduces key administrative reforms.

Senate Votes to Advance the Big, Beautiful Bill – Latest on Renewable Energy Tax Credits

On June 28, 2025, the Senate voted 51-49 to advance its version of the Big, Beautiful Bill (the “Bill” or “BBB”). As relates to renewable energy tax credits enacted by the Inflation Reduction Act of 2022 (IRA), the Senate’s version of the Bill differs in some significant respects from the version released by the Senate Finance Committee (SFC) on June 16, 2025, as summarized below. Our prior client alert discusses the differences in impact on renewable energy tax credits between the SFC version of the Bill and the version approved by the House of Representatives on May 22, 2025.

SCOTUS Affirms Rules for Challenging Nuclear Regulatory Commission Licenses

In Nuclear Regulatory Commission v. Texas, a 6-3 decision authored by Justice Brett Kavanaugh, the U.S. Supreme Court ruled in favor of Interim Storage Partners, LLC (ISP) and the Nuclear Regulatory Commission (NRC). The case concerned the NRC’s issuance of a license to ISP to build and operate a private away-from-reactor spent nuclear fuel storage facility in West Texas, an action the Fifth Circuit had invalidated as beyond the agency’s statutory authority.

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.