U.S. Energy Department awards $94 million to back small modular reactor deployment

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Ashutosh Sureka

14.05.2026

U.S. Energy Department awards $94 million to back small modular reactor deployment — DOE boosts nuclear innovation

As U.S. electricity demand is expected to keep rising, the Department of Energy is awarding more than $94 million to eight companies to support the near-term deployment of advanced light-water small modular reactors in the United States. The funding targets licensing, supply chain and site-preparation gaps that the department says have slowed domestic nuclear buildouts and is aimed at supporting new generation in the 2030s.

Highlights

The U.S. Department of Energy awarded $94 million to eight projects addressing permitting, manufacturing, and supply chain bottlenecks for Generation III+ small modular reactors.
Constellation SMR Development ($17.3 million) and Nebraska Public Power District ($27.9 million) received funds for Nuclear Regulatory Commission early site permits in New York and Nebraska, respectively.
Awards to BWXT Nuclear Energy ($21.4 million), Framatome ($8.8 million), and others aim to expand domestic fuel and component manufacturing, supporting SMR project development for the 2030s.

Funding targets siting and manufacturing bottlenecks

As reported by the Department of Energy, the awards are being made under the Generation III+ SMR Pathway to Deployment Program to accelerate additional reactor projects by addressing constraints in permitting, equipment production and project readiness.

Two of the selected projects focus on site selection and preparation. Constellation SMR Development is receiving $17.3 million to pursue a U.S. Nuclear Regulatory Commission early site permit for a location in New York, while Nebraska Public Power District is receiving $27.9 million for a similar permit process in Nebraska.

Six other awards are aimed at strengthening the domestic nuclear supply chain. BWXT Nuclear Energy is receiving $21.4 million for equipment at its Mount Vernon, Indiana facility for final assembly of reactor pressure vessels and other large components, while Framatome U.S. Government Solutions is receiving $8.8 million to expand fuel fabrication capacity in Richland, Washington by adding ceramic pellet production lines.

Global Nuclear Fuel Americas is receiving $3 million to add a second fuel rod production line and automate parts of pellet inspection and handling in Wilmington, North Carolina. American Forgemasters Company is receiving $2.9 million for a new furnace in New Castle, Pennsylvania, Scot Forge Company is receiving $12.3 million for large machining equipment in Spring Grove, Illinois, and Container Technologies Industries is receiving about $547,900 to expand nuclear quality assurance certifications at its Helenwood, Tennessee facility.

Nuclear push supports longer-term U.S. generation plans

The department says the projects are intended to help build supply chains needed for new nuclear generation in the 2030s and to strengthen orderbooks for Gen III+ small modular reactors. Energy Secretary Chris Wright says advanced light-water SMRs are expected to provide round-the-clock power for manufacturing, data centers, artificial intelligence growth and grid reliability.

The announcement also fits into a broader federal funding effort for new nuclear capacity. In March 2025, the department issued a $900 million solicitation to de-risk deployment of Gen III+ SMRs, and in December 2025 it announced $800 million in Tier 1 awards to the Tennessee Valley Authority and Holtec Government Services for initial projects in Tennessee and Michigan.

Light-water SMRs are being positioned by the department as a faster and more scalable route to new nuclear capacity because they rely on proven technology and can use existing supply chains. For manufacturers and utilities in states including New York, Nebraska, Washington and Indiana, the latest awards are expected to support earlier project development and domestic component production.

Our earlier coverage of the House Appropriations Committee’s FY2027 Energy and Water Development spending bill outlined a $58.5 billion discretionary funding plan that prioritizes national security-linked energy programs and infrastructure. The proposal emphasizes nuclear priorities such as deterrence modernization, Navy nuclear propulsion, and efforts to expand U.S. nuclear energy capacity, while shifting funding away from some prior initiatives toward baseload power research and grid cybersecurity.

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