34 C.F.R. § 663.42 – How may a fellowship be revoked?

(a) The fellowship may be revoked only by the J. William Fulbright Foreign Scholarship Board upon the recommendation of the Secretary.
(b) The Secretary may recommend a revocation of a fellowship on the basis of—
1. (1) The fellow's failure to meet any of the conditions in § 663.41; or
2. (2) Any violation of the standards of conduct adopted by the J. William Fulbright Foreign Scholarship Board.
  (Authority: 22 U.S.C. 2452(b)(6), 2456, and Policy Statements of the J. William Fulbright Foreign Scholarship Board, 1990)