The US is stepping up efforts to expand nuclear energy, with the Department of Energy announcing more than $94 million in funding for eight companies working on small modular reactor projects.
The funding aims to speed up the deployment of advanced nuclear reactors while strengthening domestic manufacturing and supply chains. Officials say the move is designed to support rising electricity demand, energy security, and future industrial growth.
The US Department of Energy selected eight companies under its Generation III+ Small Modular Reactor Pathway to Deployment Program. The project focus is on site preparation, licensing support and expanding the industrial base needed to build new reactors in the coming decade. The initiative forms part of the larger American plan to increase domestic energy production and modernize the power grid.
Small modular reactors (SMRs) are nuclear reactors designed to generate reliable electricity with lower construction costs and shorter build times than traditional large nuclear plants. Most of these reactors use light-water technology, which is already widely used in existing nuclear power stations across the United States. This makes them easier to license and integrate into the current nuclear infrastructure.
The Department of Energy said that the selected projects will help address major obstacles that have slowed nuclear development in recent years. These include supply chain shortages, limited production capacity, regulatory delays, and the lack of prepared reactor sites. Federal officials believe that solving these issues now will accelerate reactor deployments in the 2030s.
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US Secretary of Energy Chris Wright said nuclear power is key to the country’s long-term energy plans. He stated that advanced SMRs can provide stable electricity for manufacturing, artificial intelligence infrastructure, and data centers that require continuous power. He also said the funding supports the administration’s wider energy expansion strategy.
Nuclear Supply Chain Gets Major Investment
Two of the selected projects focus directly on site selection and preparation for future reactor construction. Constellation SMR Development received more than $17.2 million to pursue a Nuclear Regulatory Commission Early Site Permit for a location in New York. Nebraska Public Power District secured nearly $27.9 million for a similar licensing effort in Nebraska.
An Early Site Permit allows companies to complete environmental reviews and safety evaluations before reactor construction begins. This process can reduce delays later in the development timeline. It also helps utilities prepare locations for future nuclear projects before final reactor approvals are granted.
Several awards were directed toward rebuilding the domestic nuclear manufacturing base. BWXT Nuclear Energy received more than $21.4 million to upgrade its Indiana facility for the assembly of reactor pressure vessels and the production of large components. These pressure vessels are important components of nuclear reactors because they house the reactor core and the high-pressure coolant system.
Container Technologies Industries received funding to expand nuclear quality certifications at its Tennessee facility. The company plans to produce specialized steel materials needed for future SMR projects. Officials say increasing the number of certified suppliers is important for scaling nuclear construction nationwide.
Framatome US Government Solutions secured $8.8 million to expand its fuel production capacity at its Washington facility. The company will add ceramic pellet production lines that support the nuclear fuel manufacturing. The expansion is projected to increase the annual uranium fuel capacity by around 200 metric tons.
Global Nuclear Fuel Americas also received support to expand its fuel rod production operations in North Carolina. The project includes upgrades to automation for pellet inspections and fuel-handling systems. Automated production systems can improve efficiency and reduce manufacturing delays.
American Forgemasters Company and Scot Forge Company also received funding to strengthen the heavy component manufacturing. The companies will install new industrial machinery capable of producing large forged reactor parts. These components remain essential for the future SMR construction and long-term reactor maintenance.
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Why Small Modular Nuclear Reactors Matter
The latest funding comes as the US faces a growing electricity demand from new industries and digital infrastructure. Data centers, artificial intelligence systems and advanced manufacturing facilities require large continuous power. Unlike solar and wind power, nuclear reactors can run continuously without weather related interruptions.
SMRs are seen as one of the fastest ways to expand nuclear power because they are designed for modular construction. Many reactor sections can be manufactured in factories and assembled on-site, reducing construction complexity. Industry experts say this approach can lower costs compared to traditional nuclear plants that often face delays and budget overruns.
The funding announcement also follows a broader federal effort launched in March 2025. At that time, the Department of Energy introduced a $900 million program to reduce financial and technical risks associated with advanced nuclear deployment. In December 2025, the government awarded $800 million to the Tennessee Valley Authority and Holtec Government Services for reactor projects in Tennessee and Michigan.
The Generation III+ SMR program is intended to bridge the gap between today’s nuclear reactors and future advanced reactor technologies. Current Gen III+ reactors use proven safety systems and established designs while modern upgrades include. Federal officials see them as a practical near-term solution before the next-generation reactor concepts become commercially available.
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The US currently operates the world’s largest nuclear power fleet, but many reactors are aging and approaching retirement. Expanding SMR deployment is viewed as a way to maintain reliable power generation while reducing dependence on fossil fuels. The new investments also aim to keep critical nuclear manufacturing capabilities in the country rather than rely on foreign suppliers.
The latest awards show that the US is moving aggressively to rebuild its nuclear industry and prepare for a new wave of reactor construction. These projects can help shape the next phase of American energy production during the 2030s. The success of these efforts will influence how quickly advanced nuclear technology becomes part of the country’s future power grid.
