Josh D’Amaro’s tenure as Disney’s chief executive is facing its first major test just six weeks in, as the federal government launched an unprecedented review of all ABC station licenses. The Federal Communications Commission ordered the review following President Trump’s demand that ABC fire late-night host Jimmy Kimmel over a joke about First Lady Melania Trump. While Disney owns only eight of the more than 200 stations carrying ABC programming, those eight cover the nation’s largest markets: New York, Los Angeles, Chicago, Philadelphia, Houston and San Francisco. Legal experts say Disney would likely win in court, but the company could face months or years of expensive litigation.

The political firestorm adds to a turbulent start for D’Amaro, who took over in February. OpenAI recently discontinued its Sora tool, voiding a $1 billion deal with Disney. The company also faced a scandal around “The Bachelorette” on ABC and announced layoffs tied to broader marketing cuts. D’Amaro spent his entire career in theme parks and experiences before becoming CEO, leaving him in unfamiliar territory navigating a high-stakes political fight. He’ll lean on Disney president Dana Walden, who helped defuse a similar Kimmel controversy last year.

Disney has shown no indication it will fire Kimmel, with D’Amaro allowing the host to air his show as normal after the Trump administration’s criticism. The company said it is “confident” its stations operated in full compliance with FCC rules and is prepared to defend itself through legal channels. Board chairman James Gorman called D’Amaro “world class” and said he’d “rise to the occasion.” The crisis echoes Bob Chapek’s 2020 dispute with Florida Governor Ron DeSantis over the “Don’t Say Gay” bill, which contributed to his firing two years later.