This report complete Milestone M3.1.1 -"Cladding downselection: Team will report to ARPA-E on at least two down-selected cladding options-one metallic and one ceramic." In this milestone, we systematically assess FeCrAl alloys and SiC-based cladding options for a zirconium hydride (ZrHx) moderator in terms of their neutronics, radiation stability, hydrogen permeability, chemical compatibility, and fabricability. The analysis shows that FeCrAl alloys are excellent candidate cladding materials for a ZrHx moderator given their proven radiation stability, acceptable compatibility with ZrHx, and industrially established fabricability. The relative high hydrogen permeability is manageable by introducing a thin layer of an Al2O3 hydrogen permeation barrier on the external surface. The SiC-cladded ZrHx moderator is promising because of its outstanding neutronics performance, excellent radiation stability, and extremely low intrinsic hydrogen permeability. However, potential interactions of SiC and Zr and the challenge in achieving a hermetic SiC-based cladding require further investigation.