The US Department of Energy has awarded Tennessee Valley Authority and Holtec International USD$400 million each to speed up early deployments of advanced small modular reactors across the United States. The decision marks the first major award under a federal program designed to push Generation III+ light-water SMRs toward commercial operation in the early 2030s.
The Biden administration first opened applications for the funding in October 2024. The DOE sought “first-mover” teams willing to build the initial wave of Gen III+ reactors. These reactors use familiar light-water technology while aiming for smaller footprints, stronger safety features, and faster factory-based manufacturing. The agency defined qualifying units as producing 50 to 350 megawatts of electricity and using low-enriched uranium, the same type of fuel used in most existing plants.
DOE re-issued the solicitation in March 2025 to better match President Donald Trump’s direction on expanding domestic energy production. The revised guidance aligned the program with his broader push to grow nuclear power, boost AI-driven industries, and secure US supply chains.
The department said these selections will help launch new nuclear capacity in the next decade. Officials also said the funding supports Trump’s executive orders that aim to restart a nuclear construction surge and enhance the nation’s energy strength.
Energy Secretary Chris Wright said the administration expects nuclear power to support a rising wave of manufacturing and data-center construction. He noted that round-the-clock power is essential for energy-hungry technologies such as artificial intelligence. He also said the federal support will move the reactors into service sooner.
Read more: Constellation Energy to bring Three Mile Island reactor online with Federal support
Read more: U.S. Army launches Janus Program to deploy nuclear microreactors by 2028
Department of Energy support will reduce financial risk
Tennessee Valley Authority’s (TVA) application secured one of the two major awards. The utility wants to build the country’s first Gen III+ SMR at its Clinch River site in East Tennessee. TVA applied for the funding in April with a large group of partners, and it plans to use the GE Vernova Hitachi BWRX-300 design. The organization also plans to coordinate with Indiana Michigan Power and Elementl to develop additional units in the region.
TVA intends to work with several domestic suppliers, including Scot Forge, North American Forgemasters, BWX Technologies (NYSE: BWXT), and Aecon. In addition, Duke Energy (NYSE: DUK), Oak Ridge Associated Universities, and the Electric Power Research Institute will support research, workforce development, and design evaluation. TVA said the Clinch River effort will act as a national model to show that SMRs can be built safely, efficiently, and affordably.
The authority filed a construction permit application with the Nuclear Regulatory Commission in May. NRC staff are reviewing the documents. Meanwhile, TVA President Don Moul said the funding shows that the utility plays a major role in shaping the future of US nuclear energy. He said the DOE support, along with the company’s network of partners, will help reduce financial risks for customers and improve US energy security.
The DOE and TVA will now enter another round of detailed talks to set specific milestones and finalize co-applicant awards.
Read more: Bushehr expansion and new reactor sites mark Iran nuclear ambitions
Read more: Cameco, Brookfield, and Westinghouse ink partnership with U.S. for new reactors
Company proposal outlines multi-site approach
Holtec International received the second USD$400 million award. The company plans to build two SMR-300 reactors, known as Pioneer 1 and Pioneer 2, at the site of the former Palisades nuclear station in Michigan. Holtec wants these units to prove the viability of a broader domestic and international deployment plan. The company intends to use a “one-stop-shop” strategy by serving as technology vendor, supply-chain manager, plant builder, operator, and power merchant.
The company has partnered with Hyundai Engineering & Construction for major construction work. The company’s proposal also outlines a multi-site approach that repeats the same design and same processes at several locations. This fleet-style strategy is central to the DOE’s Tier 1 program because repeated builds can reduce costs and shorten schedules through standardized engineering and large-scale manufacturing.
Furthermore, Holtec intends to bring the Pioneer reactors online in the early 2030s. CEO and executive chairman Kris Singh said the industry must deliver reactors that operate safely while staying cost competitive. He said the company has spent more than a decade refining the SMR-300 design and building the support systems needed for long-term deployment. Singh also said the grant strengthens Holtec’s ability to roll out a standard fleet that improves grid resilience and boosts US exports of nuclear equipment.
The DOE said the remaining USD$100 million in program funding will be awarded later this year. This portion will focus on issues that slow nuclear projects, including supply-chain delays, design bottlenecks, licensing challenges, and site-readiness tasks.
The federal program aims to address several hurdles that have emerged during past nuclear-construction cycles. Many companies have struggled with component shortages and limited factory capacity.
Read more: Texas A&M to host first reactor in Trump’s nuclear pilot initiative
Read more: Startup reimagines nuclear energy with mile-deep micro-reactor pilot
Holtec added new long-term SMR plan
Additionally, the sector has faced long regulatory reviews and uneven financing support. The DOE’s structure attempts to lower these risks while pushing new US-made reactor designs into the marketplace.
TVA’s Clinch River BWRX-300 project is expected to be one of the first real-world demonstrations of rapid SMR deployment. The utility has spent years preparing the site, and it has already completed environmental reviews for earlier reactor proposals. The new funding will help TVA move into advanced planning, schedule development, and detailed engineering. In addition, the utility expects the project to draw on regional research facilities, including those at Oak Ridge.
Holtec’s Palisades plan will reuse a site with existing transmission infrastructure and a community familiar with nuclear operations. The company previously bought the closed plant to restart the reactor, and it has now added a long-term SMR plan. Furthermore, it has now added a long-term SMR plan. The Pioneer units will sit near the old plant footprint, allowing Holtec to use established connections to the local grid. The multi-site strategy may also support projects in states seeking new baseload power.
Industry analysts say both awarded teams will test whether factory-built SMRs can reach the market faster than traditional large reactors. They also say the new partnerships with steel forgers, heavy manufacturers, component suppliers, and research groups will play a central role in whether SMRs establish a durable US supply chain.
.
