The Champions are monitoring a teen summit at Coles Academic High School to protect Ailana Kabua, who has been targeted by Roxxon. The school is attacked by Roxxon using an Asgardian dragon left from the The War of the Realms. The Champions brawl against Roxxon while also evacuating the crowd. Power Man sends his chi-force at the dragon but Viv Vision is accidentally hit and becomes unstable. The Champions are unable to keep the high school from being destroyed as they attack and manage to stop both the dragon and Viv, who disappears. Meanwhile, escorting Ailana to safety, Ms. Marvel saves her from falling debris by risking her life. Ironheart breaks down in the aftermath of the chaos. Due to the Coles Disaster, the Underage Superhuman Welfare Act is passed by Senator Geoffrey Patrick outlawing superheroes under the age of 21, despite Avengers defending the Champions' actions. Ms. Marvel is in coma in a hospital and to honor her, the act is named "Kamala's Law", without knowing her secret identity as Ms. Marvel. C.R.A.D.L.E. (Child Hero Reconnaissance And Disruption Law Enforcement) is created consisting of Justice, Carolina Washington, Jake Oh, Dum Dum Dugan, Speedball, Timeslip. C.R.A.D.L.E. goes after superheroes like Moon Girl at her home and Ironheart at her Chicago lab and observe the first wave of protest while preparing to raid the West Coast Avengers' HQ. They commandeer the Champions Mobile Bunker while arresting Snowguard and Locust, and hang wanted posters of Ms. Marvel in Jersey City.
After waking from coma, Ms. Marvel makes an unexpected and emotional announcement that her team won't go down without a fight. Spider-Man escapes from getting arrested by the NYPD who is in turf war with C.R.A.D.L.E. He reaches at the abandoned warehouse where the Champions, Cloud 9, Energizer, Mass Master, Moon Girl, Squirrel Girl and Vulture's granddaughter Starling have gathered to plan their next move with video conferencing with Ms. Marvel who is still in hospital. Ironheart is not present while Falcon (Joaquin Torres) has signed up with Sam Wilson to be mentored. They agree to go against government for their rights but dispute emerges between Nova and Starling when some heroes disagree with Ms. Marvel's leadership as she announced the war without consulting them and she should have stopped Viv from making rampage. Suddenly, C.R.A.D.L.E. led by Justice ambush them. Justice tries to explain them the dangers of being young superheroes, but a brawl breaks between them. Ms. Marvel is forced to end the conference realizing there is a spy among them. Bombshell and Wasp are arrested while others are teleported to safe place by Pinpoint including reluctant Nova. Unbeknownst to others, Viv is the spy who had sent encrypted message to C.R.A.D.L.E.
Bombshell, Locust, Snowguard, and Starling are being forced in Re-education Center for brainwash by C.R.A.D.L.E. Snowguard and Bombshell managed to free themselves using their powers, but are again captured by time-traveling Timeslip. Protests erupt across Chicago where the Champions members Ms. Marvel, Nova and Spider-Man are monitoring the crowd. They call Ironheart and receive no response. When C.R.A.D.L.E. and CPD start arresting protestors, the Champions rescue them by fighting publicly. Later, they find Ironheart in her public identity at her house where they confronted each other. Ms. Marvel suspects her to be spy. Riri is furious with Ms. Marvel for not being there and still held herself responsible for Viv's presumed death but transforms into Ironheart when they are attacked by C.R.A.D.L.E. Elsewhere, Viv is on run and prays for the Champions to stop fighting C.R.A.D.L.E. and be safe.
At a Re-education Center, Bombshell gives interview feeling guilty for Coles Disaster which caused skirmish between C.R.A.D.L.E. and her teammates as they didn't wanted to be brainwashed like her. Bombshell's interview becomes breaking news. Somewhere in Kansas, Viv helps an old woman who gives her place to stay as she correctly guessed her as runaway. Meanwhile, Ironheart, Ms. Marvel, Nova and Spider-Man are still on run from C.R.A.D.L.E. who somehow always evade them. They tried to get help of Avengers and Brawn but fail. They are saved by Cyclops and Dust, who came to rescue them during the ambush with C.R.A.D.L.E. one night. Cyclops offers them asylum on Krakoa and suggest C.R.A.D.L.E. to stop unless they want war with the mutant nation.
Marvel Comics announced on April 15, 2020, new version of New Warriors will appear for Outlawed storyline. The new characters particularly the use of internet slang in names as well as the perceived political agenda of the writing met considerable backlash from online audiences.