Going Nuclear: DOE Bets Big on America’s Energy Future

By Sara M. Ajeti, Sukhmani K. Singh, and Christopher P. Colyer

On June 23, 2026, the U.S. Department of Energy (DOE) announced a significant step toward expanding domestic nuclear generation by issuing a conditional loan commitment of up to $17.5 billion to support the deployment of 10 new large-scale nuclear reactors at as many as five project sites across the United States.¹ The financing initiative represents one of the federal government’s most significant investments in commercial nuclear infrastructure in decades and signals continued momentum behind the Trump Administration’s broader effort to revitalize the nation’s nuclear industry.

The loan commitment implements Executive Order (EO) 14302 Reinvigorating the Nuclear Industrial Base, one of four nuclear-focused executive orders signed on May 23, 2025. EO 14302 also set a national goal of expanding U.S. nuclear capacity by approximately 300 GW —  reaching 400 GW total by 2050 (up from approximately 100 GW today) — and targets 10 new large reactors under construction by 2030. The order directs DOE to prioritize financing for restarting closed plants, increasing output of operating plants, completing construction of prematurely suspended reactors, constructing new advanced reactors, and improving the nuclear fuel supply chain. It invokes the Defense Production Act of 1950 (50 U.S.C. § 4558(c)(1)) for voluntary agreements with domestic nuclear energy companies.

Federal officials have also emphasized that rebuilding the domestic nuclear supply chain is intended to strengthen American manufacturing capabilities, expand the skilled workforce supporting nuclear construction, and reduce future deployment costs through standardized reactor development. The Trump Administration has also pointed to rapidly increasing electricity demand, particularly from artificial intelligence infrastructure, advanced manufacturing, and large-scale data centers, as a key driver behind renewed investment in firm, dispatchable generation resources such as nuclear power.

The proposed loans are intended to finance the purchase of “long-lead” components, which are specialized nuclear equipment items that require substantial manufacturing time and often create scheduling bottlenecks for new reactor projects. By allowing these components to be ordered earlier in the development process, DOE estimates the financing could reduce project timelines by as much as three years while lowering overall construction costs through coordinated, large-volume procurement. The financing will be administered through DOE’s Office of Energy Dominance Financing (formerly the Loan Programs Office) and is expected to finance up to five separate facilities. Each loan would correspond to a project consisting of two reactors.

The initiative centers on deployment of Westinghouse AP1000 reactor technology, currently the only licensed large-scale advanced commercial reactor operating in the United States. Each AP1000 reactor is expected to generate approximately 1.1 GW of electricity, for a combined output sufficient to power nearly 10 million homes. Under the proposed structure, Westinghouse will partner with eligible utilities and energy companies to develop projects using standardized reactor design.

Before any DOE loan proceeds become available, each project must satisfy significant private investment requirements. Westinghouse and its utility or energy company partners must collectively contribute $1 billion in project equity, with each party providing $500 million upfront. DOE has indicated that equipment purchases will occur in phases upon achieving milestones relating to project readiness and fulfillment.

For utilities, independent power producers, investors, and other participants in the energy sector, DOE’s announcement signals more than just a financing initiative, it is an indication of the federal government’s commitment to expanding the nation’s nuclear generation fleet. Companies interested in participating in these projects should closely monitor forthcoming DOE announcements. As these projects move from planning to development, stakeholders will also need to navigate a complex regulatory landscape that may include DOE financing requirements, Nuclear Regulatory Commission licensing, Federal Energy Regulatory approvals, and so on. Early planning and coordination will be critical to position projects for success.

***Opinions expressed are those of the author and not necessarily the firm’s or their colleagues’.