Launch Alaska has filed a lawsuit against the US Navy challenging the sudden cancellation of a $5 million federal grant. The Anchorage-based nonprofit filed its complaint Tuesday in US District Court, claiming the Navy offered no valid reason for the termination.
Officials at the Office of Naval Research canceled the five-year grant in April due to a policy shift under Defense Secretary Pete Hegseth. Launch Alaska’s lawsuit argues that the termination will likely lead to layoffs, canceled contracts, and the collapse of its accelerator program.
The organization said it had complied with all requirements and received no warning about mismanagement. The contested grant supports Launch Alaska’s ARCTIC program, which aids energy innovation aligned with Navy priorities in the Arctic.
According to the complaint, the work also includes developing low-emission technologies and supporting clean transportation efforts in Alaska. From 2022 until the April cancellation, Launch Alaska said it had received partial funding, and no concerns were raised about its performance.
Yet the Navy later told the nonprofit to stop all activity related to the grant immediately. Officials referred to a memo from Hegseth that targeted grants tied to climate change DEI or social programs deemed outside Department priorities.
However, Launch Alaska said the memo did not mention its specific project and lacked apparent justification. After appealing the decision in May, the Navy responded in June, upholding the cancellation without offering any explanation or review.
Launch Alaska reached out to Senator Dan Sullivan, whose office failed to secure any details or alternatives from Navy officials. According to the complaint, no risk assessment or cost-benefit analysis preceded the decision to terminate funding.
This lawsuit maintains that the organization’s work supports Navy goals and national energy priorities. The nonprofit asks the court to overturn the cancellations, arguing that the Navy acted arbitrarily and without legal justification.
