The new administration has repeatedly expressed its staunch support for nuclear energy. President Trump's first-day executive order "Unleashing American Energy" specifically encouraged the development of nuclear energy resources. Similarly, Department of Energy (DOE) Secretary Chris Wright's February 5, 2025 order entitled "Unleashing the Golden Era of American Energy Dominance" stated:
The long-awaited American nuclear renaissance must launch during President Trump's administration. As global energy demand continues to grow, America must lead the commercialization of affordable and abundant nuclear energy. As such, the Department will work diligently and creatively to enable the rapid deployment and export of next-generation nuclear technology.
These orders follow the enactment of two significant bipartisan statutes: the 2019 Nuclear Energy Innovation and Modernization Act (NEIMA) and the 2024 Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act, both are designed to encourage development of advanced nuclear technologies.
The actions of the new administration and the new Congress will affect the schedule and nature of developments in the nuclear field. As of this writing, it is unclear whether the stated good intentions for advanced nuclear will translate into a workable system of technologic support, financial incentives and regulatory streamlining. We explore some recent updates in this blog article.
Overview of Advanced Nuclear Technologies
After decades of research and development, advanced nuclear technologies—particularly small modular reactors (SMRs) and microreactors—have emerged as potentially promising solutions for the future of clean energy in the United States. These next-generation reactors are designed to be smaller, more efficient, and inherently safer than traditional large-scale nuclear power plants. Types of advanced nuclear technologies include:
- Small Modular Reactors (SMRs): SMRs differ from traditional nuclear reactors because they are based on standardized design and are intended to be constructed in factories and then transported to operational sites, streamlining construction and reducing costs. SMRs can be up to 300 MW in size.
- Microreactors: Microreactors, which are even more compact than SMRs and generally capable of 1 to 50 MW, can be delivered by truck, rail, ship, or plane, making them ideal for deployment in remote locations, military installations, and data centers.
- Generation IV Reactor Designs: Generation IV reactors are advanced nuclear systems that use innovative designs and coolants to improve safety, efficiency, and waste management compared to current reactors.
- Advanced Fuel Cycles: Advanced fuel cycles involve reprocessing and recycling nuclear fuel to recover usable materials and reduce radioactive waste, potentially reducing reliance on long-term geological storage.
Although there are currently no operating advanced nuclear reactors in the U.S., and many financing, siting and regulatory hurdles remain, the sector has made significant technical strides in recent years. Advanced reactor demonstration projects have been announced, entered permitting, or even begun construction. For example, the NRC certified the first U.S. SMR (NuScale) design in January 2023, representing a milestone for the advanced nuclear industry. In December 2023, the NRC issued a construction permit to Kairos Power for a non-power test reactor in Tennessee. In June 2024, TerraPower commenced construction on the non-nuclear portion of its demonstration plant in Wyoming; its construction permit is currently under review. In April 2025, X-Energy and Dow filed a construction permit application for a SMR in Texas. Also in April, the Tennessee Valley Authority applied for a construction permit for is proposed SMR in Oak Ridge, Tennessee.
Further progress can be expected as demand for nuclear power increases. Major consumers of power, including Amazon and Google, have invested in advanced nuclear. They cite advanced nuclear's carbon-free, scalable, and reliability attributes as key advantages. The rapid growth of data centers—which require significant and stable power supplies—further highlights the potential for SMRs and microreactors to support the digital economy.
Recent Developments at the Federal Level
In response to NEIMA and the ADVANCE Act, the Nuclear Regulatory Commission (NRC) has been working to develop a new, more flexible regulatory framework for advanced nuclear technology. In September 2024, the NRC issued a draft Nuclear Reactor Generic Environmental Impact Statement (GEIS) as part of an effort to streamline NEPA review for new nuclear reactors, and proposed new rules on October 4, 2024; NRC currently states that final rules codifying the findings of this GEIS will be issued by June 1, 2026. In February 2025, the NRC proposed to sharply reduce its hourly service fees for licensing services, inspection services, and special projects for advanced nuclear applications and pre-applications, in an effort to incentivize innovation and accelerate deployment.
As awareness of the critical role advanced nuclear technology plays in achieving climate and energy security increases, so too does the call for NRC reform. Stakeholders identify licensing efficiency as a challenge, with current licensing pathways still tailored to conventional, light water reactors. Efforts to spur change are in the works – approximately a dozen advanced reactor developers are working directly with the NRC to secure approval under existing regulations, while other industry stakeholders are actively engaging with the NRC to advocate for targeted reforms.
Federal incentives also play a crucial role in promoting nuclear energy. Tax incentives—such as the Section 45U zero-emissions nuclear power production tax credit, the Section 45J advanced nuclear production tax credit, the Section 45Y clean electricity production tax credit (PTC), and the Section 48E clean electricity investment tax credit (ITC)— are designed to support the growth of clean energy technologies. It is unclear whether those tax incentives will remain as the new administration and new Congress re-examine the implementation of the Inflation Reduction Act (IRA) and other statutory tax incentives. According to Politico (subscription required), as of early May 2025, GOP lawmakers have been negotiating whether to keep IRA credits for nuclear power. While 26 Republican lawmakers have argued these incentives are important for meeting rising power demand, 38 others have called for a full repeal of the IRA green energy subsidies, citing burdensome costs for taxpayers over the next decade. This debate comes days after over 100 companies in the nuclear industry sent a letter to lawmakers urging that the tax credits for nuclear power remain to retain and grow U.S. nuclear capacity.
Federal incentives have also included direct investment in basic R&D as well as specific projects. DOE invested in research programs such as the Advanced Reactor Demonstration Program and the National Reactor Innovation Center. More recently, in late March 2025, the DOE introduced a $900 million solicitation to de-risk the deployment of Generation III+ light water SMRs. In early April 2025, the DOE made conditional commitments to provide high-assay low-enriched uranium, a key need for certain advanced reactors, to five U.S. nuclear developers. DOE also continued its support for the reopening of the Palisades Nuclear Plant via disbursements of up to $1.52 billion loan guarantee to Holtec International for the project. (Holtec announced in February 2025 that it will deploy SMRs at the Palisades Plant.)
Whether or how tax incentives and direct investment will continue in the new administration and the new Congress is unclear. On May 2, 2025, the administration proposed approximately $400 million in cuts to the DOE Office of Nuclear Energy's budget for fiscal year 2026 as part of a broader effort to reduce DOE funding—stating that the budget would "reduce[] funding for non-essential research on nuclear energy to focus on what is truly needed to achieve national dominance in nuclear technology."
The administration has reiterated that it will continue to support advanced nuclear power and that "the long-awaited nuclear renaissance is right around the corner." While developers and future users of advanced nuclear power technologies certainly share that sentiment, time will tell whether the reality will match the rhetoric.
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