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A federal court upholds New York City’s congestion pricing program, the U.S. Department of Energy relaxes safety rules for experimental nuclear reactors, and more…
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**IN THE NEWS**
* The U.S. District Court for the Southern District of New York rejected the Trump Administration’s efforts to block New York’s congestion pricing program. The New York state legislature created the program with the intention of protecting “the public health and safety of New York’s residents” and ensuring efficient public transit within the city. To operate this project, the New York State and City Departments of Transportation entered into an agreement with the U.S. Department of Transportation, as required by law. In February 2025, however, U.S. Secretary of Transportation Sean Duffy sent a letter to New York Governor Kathy Hochul rescinding that agreement. In his decision, U.S. District Judge Lewis J. Liman found the rescission to be arbitrary and capricious because it did not engage with the administrative record and only presented “conclusory statements.”
* The U.S. Department of Energy issued new rules that reduce environmental and security requirements for experimental nuclear reactors. These new rules were implemented in response to a Trump Administration executive order calling for more than three experimental reactors to go into effect by July 4, 2026. An Energy Department spokesperson told NPR that these changes “demonstrate the tremendous strides the Department has made under President Trump’s leadership” to modernize the nuclear reactor authorization process “while maintaining safety and security standards.” Experts have reportedly warned, however, that the rules implement “substantial changes” that could undermine safety, security, and environmental protections.
* President Donald J. Trump fired Kristi Noem from her position as U.S. Secretary of Homeland Security and announced that Senator Markwayne Mullin (R-Okla.) will be replacing her. According to a post made by President Trump on Truth Social, former Secretary Noem will be transitioning to a position as special envoy for The Shield of the Americas, a “new security initiative in the Western Hemisphere” to be launched this Saturday. This development followed a hearing before the U.S. Senate Judiciary Committee, where senators from both parties were critical of former Secretary Noem for her handling of the immigration enforcement surge in Minnesota and for the Department of Homeland Security’s arrest and deportation tactics under her leadership.
* The U.S. Senate failed to pass a war powers resolution for President Trump’s military campaign in Iran by a 47-53 vote. If passed, the war powers resolution would have required the Trump Administration to seek congressional approval for additional attacks on Iran. The vote followed days of airstrikes on Iran, resulting in the killing of Iranian Supreme Leader Ayatollah Ali Khamenei. Senator Tim Kaine (D-Va.), one of the lead sponsors of the resolution, stated that “nobody gets to hide and give the president an easy pass or an end-run around the Constitution.” In opposition to the resolution, Senator John Barrasso (R-Wyo.) expressed concern that this effort would obstruct President Trump in his stated goal to destroy Iran’s nuclear program.
* Michigan Attorney General Dana Nessel filed a lawsuit against Kalshi, a predictions market platform, for violating a state sports betting law. Following the lawsuit, Polymarket and Robinhood, other prediction market platforms, both filed lawsuits, arguing that any potential state lawsuits are preempted by a federal law that grants the Commodity Futures Trading Commission exclusive jurisdiction over “derivatives” traded on designated contract markets, which would include sports contracts.
* The Federal Communications Commission (FCC) announced that it is seeking comment on sports broadcasting rights and potential steps the FCC can take to ensure continued viewer access. The public notice explained that, although many games are still free on broadcast television, the rise of streaming services has made it harder for consumers to watch sporting events without paying for a subscription. This public comment follows a House Judiciary Committee briefing last year and renewed interest by some senators on whether antitrust exemptions for major sports leagues’ broadcast television rights should continue, given that the Sports Broadcasting Act applies only to broadcast television.
* Meta announced that it will temporarily allow third-party artificial intelligence (AI) chatbots on its messaging platform, WhatsApp, in the European Union, following objections from EU regulators who argued that blocking rivals violates the Digital Markets Act (DMA). The company plans to allow users to access competing AI assistants such as ChatGPT or Claude directly within WhatsApp chats. The move comes after the European Commission opened a formal probe in late 2025 into Meta’s gatekeeper practices on messaging platforms. Supporters praised the step as a pragmatic compromise that promotes competition and user choice, while critics warned that high fees could deter smaller AI providers and limit meaningful access. The interim policy applies only in the EU while Meta negotiates long-term compliance with DMA interoperability rules.
* The United States and Japan are finalizing plans to include a major nuclear power project in a $550 billion bilateral investment package. The initiative, part of broader U.S.–Japan economic cooperation, aims to boost advanced nuclear energy capacity in Japan while strengthening supply chains for critical minerals and clean energy technologies. Negotiations focused on joint development of small modular reactors and next-generation designs to meet Japan’s energy security needs and support U.S. export goals. Supporters praised the move for advancing decarbonization and reducing reliance on imported fossil fuels, while critics warned of regulatory hurdles, high upfront costs, and public safety concerns. The agreement is expected to be formalized during upcoming high-level talks.
**WHAT WE’RE READING THIS WEEK**
* In a recent methodology note from the George Washington University Regulatory Studies Center, Lucas Thevenard, a scholar at the Center, outlined a framework for evaluating the regulatory impact of artificial intelligence (AI) tools on federal rulemaking processes. The note focuses on how agencies can use AI to analyze public comments more efficiently while preserving transparency and due process. Thevenard highlighted key challenges, including bias in AI summaries, lack of explainability, and risks to meaningful public participation. Thevenard recommended that agencies adopt human-in-the-loop review, publish AI prompts and methodologies, and conduct regular audits to ensure reliable and accountable use of AI in notice-and-comment rulemaking. He concluded that careful methodological safeguards can help agencies harness AI’s efficiency while protecting core administrative law principles.
* In a recent article in the _Yale Journal on Regulation’s_ blog, _Notice & Comment_, Max Sarinsky, the legal director at the Institute for Policy Integrity at New York University School of Law, discussed the major questions doctrine—the requirement that federal agencies have clear congressional authorization before enacting regulations that pertain to questions of major economic or political significance—in the wake of the U.S. Supreme Court’s decision in _Learning Resources v. Trump_. Sarinsky explained that a majority of the justices in _Learning Resources_ agreed that the do
* ctrine does not apply when an agency’s action is not unheralded, transformative, and of great economic or political significance. Sarinsky also argued that a majority of the justices seem to view the doctrine as a rule for interpreting statutes rather than a strict requirement that Congress use clear language.
* In a recent article in the _University of Iowa Law Review_ , Robert M. Andersen, a professor at the University of Iowa College of Law, investigated the Nuclear Regulatory Commission’s (NRC) record in regulating environmental, safety, and health issues relating to nuclear energy. Andersen explained that the NRC imposes rigorous licensing, design, and operational requirements on nuclear facility owners.These stringent requirements, Andersen argued, help ensure that a disaster like those at Chernobyl or Fukushima would not happen in the United States. Andersen also noted that recent Congressional reforms and executive orders aimed at modernizing NRC regulations have sought to expand innovation in nuclear power by, for example, streamlining environmental review. He stressed, however, that these reforms must continue to prioritize environmental, safety and health issues.
**EDITOR’S CHOICE**
* In an essay in _The Regulatory Review_ , Kevin T. Frazier, a senior fellow at the Abundance Institute examined the vulnerabilities consumers face in an AI-driven digital landscape. Frazier argued that existing privacy protections leave dangerous gaps, exposing individuals to exploitation by AI agents that accumulate intimate data and build psychological profiles. He proposed a modern Consumer Bill of Rights for the AI era, including the right to one-and-one privacy settings, the right to recognize AI interactions, and the right to data portability and erasure. Frazier concluded that Congress should enact legislation to restore consumer autonomy, prevent platform lock-in and manipulation, and ensure AI serves as a tool for empowerment rather than exploitation.
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