Trump administration backs $17.5B in low-interest loans for up to 10 nuclear reactors
The U.S. Department of Energy is making its biggest nuclear financing push in decades. The Trump administration said it will provide $17.5 billion in conditional, low-interest loans to support construction of as many as 10 nuclear reactors, aiming to revive a sector long hampered by permitting delays and cost overruns.
Announced June 23, the loans will be issued through the DOE's Energy Department Finance program and are intended to fund long-lead components for Westinghouse AP1000 reactors. Eligible equipment includes large, custom-built items such as reactor pressure vessels, steam generators and coolant pumps—parts that can take years to manufacture and have often constrained new-build timelines.
The initiative is structured around five separate projects that together would include 10 AP1000 units. The administration's stated objective is to cut construction schedules by up to three years. At least seven utilities and energy companies have submitted letters of intent to participate. A central focus is rebuilding domestic manufacturing capacity for large commercial reactors, an industrial base that has steadily weakened in the U.S. over recent decades.
The program tracks with a broader nuclear agenda set out in an executive order Trump signed in May 2025, targeting 400 GW of U.S. nuclear capacity by 2050. The current fleet totals about 95 GW, implying a more-than-fourfold expansion over roughly 25 years.
Rising electricity demand is a key driver, with rapid growth in data centers supporting AI workloads. Microsoft, Google and Amazon have indicated interest in long-term power purchase agreements with nuclear providers, strengthening the demand outlook compared with five years ago.
The $17.5 billion commitment is also designed to address a supply-chain stalemate: manufacturers hesitate to expand capacity without firm orders, while developers are reluctant to place orders without confidence the supply chain can deliver. By backing financing for critical components, the DOE is seeking to reduce risk in the earliest and most capital-intensive stage of reactor construction.
For investors, Westinghouse stands to gain most directly. The AP1000 designer was acquired by Cameco Corporation and Brookfield Renewable Partners in 2023, and a potential pipeline of 10 new reactors would be a major increase in business. Uranium producers could also benefit, as additional reactors would lift long-term fuel demand.
Risks remain. The loans are conditional, and projects must still clear regulatory and financial requirements before funds are disbursed. The U.S. track record also includes high-profile overruns, notably the Vogtle expansion in Georgia—the only recently completed new reactor project in the country—which finished years late and billions over budget.
