The United States Department of Energy (DOE) has announced a $17.5 billion conditional loan program aimed at strengthening the country’s commercial nuclear power supply chain and accelerating the construction of new nuclear reactors.
According to U.S. Energy Secretary Chris Wright, the initiative is expected to support the country’s goal of having 10 large-scale nuclear reactors under construction by 2030, potentially advancing that timeline by as much as three years.
The funding will help utilities and energy companies purchase critical nuclear components such as reactor vessels and steam generators, which often take years to manufacture and deliver.
The program is designed to speed up the development of Westinghouse AP1000 nuclear reactors across the country.
Under the plan, the DOE’s Office of Energy Dominance Financing will provide support for up to five loans, with each project covering two 1.1-gigawatt reactors at a single site.
Westinghouse will partner with utilities and energy firms to procure reactor equipment and other long-lead supply chain items at fixed prices.
To qualify for federal funding, both Westinghouse and its utility partner must each commit $500 million to a project before accessing the loans.
Wright said interest in the program has been strong, particularly from major technology companies operating large data centers, as electricity demand continues to rise due to the rapid expansion of artificial intelligence infrastructure.
The announcement follows a separate $80 billion agreement between the U.S. government and the owners of Westinghouse Electric Canadian uranium producer Cameco and investment firm Brookfield Asset Management—to help finance and streamline approvals for future reactor projects.
While nuclear energy remains attractive as a reliable source of carbon-free electricity, the industry has faced challenges including high construction costs, project delays, and complex regulatory requirements.
Recent U.S. reactor projects, including those at the Vogtle nuclear plant in Georgia, experienced significant cost overruns and years-long delays.
President Donald Trump has set a target of increasing U.S. nuclear power capacity to 400 gigawatts by 2050, roughly four times the country’s current capacity.
Several previously closed nuclear plants, including Palisades in Michigan, Three Mile Island in Pennsylvania, and Duane Arnold in Iowa, are also expected to restart operations in the coming years as part of broader efforts to expand America’s nuclear energy sector.
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