Next-Gen Nuclear Reactors May Receive Support from Defense Legislation

President Trump recently signed the National Defense Authorization Act (NDAA) for Fiscal Year 2026, which includes initiatives aimed at advancing the bipartisan effort for next-generation nuclear power plants. The Trump administration has recognized this technology as a promising energy source for data centers that require increasing amounts of electricity, particularly for AI applications. On the other hand, many Democrats have advocated for smaller, more affordable nuclear reactors that are easier to construct and can serve as a carbon-free energy solution in the fight against climate change. Additionally, the US military has shown interest in microreactors for powering off-grid operations.

The defense bill, which Congress approved earlier this week, features two amendments that supporters of commercial nuclear energy are celebrating. The International Nuclear Energy Act establishes working groups and enhances funding and interagency collaboration for the development and export of US nuclear technologies. Furthermore, the NDAA reauthorizes the US International Development Finance Corporation, a financial institution anticipated to invest in nuclear power plant and uranium fuel projects.

These developments are seen as significant victories that enhance the appeal of nuclear exports in the global market, according to Rowen Price, a senior policy advisor for nuclear energy at a center-left think tank. The bill also mandates the Department of Defense to establish an executive agent role focused on “installation and operational nuclear energy.”