On July 31, 2025, the White House unveiled a sweeping initiative to accelerate deployment of small modular reactors (SMRs) in the United States. Spearheaded by the Department of Energy (DOE) and Department of Defense (DOD), the plan mandates that three civilian SMRs achieve criticality by July 4, 2026, while a military-designated reactor must come online within three years. This effort is driven by surging energy demand, particularly from AI data centers, and a broader push for clean energy sovereignty.
Under the executive orders announced, the Nuclear Regulatory Commission (NRC) is required to complete licensing reviews for new reactors within 18 months and to allow standardized applications to expedite “high-volume licensing” of SMR designs pre-approved by DOE or DOD. Environmental review procedures are also to be shortened significantly. However, the NRC’s reduced independence and staffing upheavals have drawn criticism from former regulators and experts concerned about safety and due diligence.
Applicants are responsible for covering all costs of design, construction, operation, and decommissioning, with no direct federal funding for project build-out. Still, federal agencies will support the licensing and application process financially.
Earlier in 2024, Congress passed the bipartisan ADVANCE Act, which directed the NRC and DOE to speed up licensing, lower fees, and support advanced nuclear technologies—including SMRs—especially at existing or brownfield sites. The act laid important groundwork by establishing prize structures and triggering environmental review reforms.
Building upon that, the Small Modular Reactor Commercialization Act of 2025 was introduced in April. It redefined SMR capacity thresholds—raising the upper limit per module from 300 MW to 500 MW—and called for a working group to assess commercial and supply chain readiness, workforce development, and U.S. competitiveness in SMR manufacturing.
Parallel to the executive push, the DOE reissued a $900 million solicitation in March 2025 aimed specifically at supporting Gen III+ light-water SMRs, viewed as the near-term path toward commercialization. This funding is split between up to $800 million for fully integrated utility/vendor/off-taker consortiums with plans for immediate deployment and roughly $100 million for follow-up teams to help overcome licensing, supply chain, and site-preparation barriers. Previously, submissions included community-benefit criteria; however, the revised solicitation eliminates those requirements and focuses solely on technical merit and readiness, in alignment with the Trump administration’s policy priorities.
Major firms well-placed to respond include NuScale, which operates the only SMR design certified by the NRC and recently received approval for its 77 MWe VOYGR-4 and VOYGR-6 modules. Westinghouse, BWX Technologies (BWXT), and Holtec International are also among those expected to lead proposals. Holtec, for instance, plans to restart the decommissioned Palisades plant in Michigan with two SMR-300 units and aims to build up to 10 GW of SMRs across North America by the 2030s.
The Department of Defense is simultaneously backing microreactor prototypes like Project Pele—designed by BWXT and X-energy—to deliver mobile, inherently safe power for defense applications. These microreactors use TRISO fuel and are expected by 2027, though they face technical and licensing challenges.
The nuclear expansion strategy set by this program seeks to quadruple U.S. nuclear capacity—from approximately 100 GW today to 400 GW by 2050—aiming to provide reliable, low‑carbon electricity for an increasingly AI-driven economy. SMRs are seen as a more modular, scalable, and flexible clean-energy solution compared to large-scale nuclear installations.
Critics, however, caution against sidelining renewable projects and safety oversight. Environmental advocates argue that investments might be better directed toward solar, wind, and energy storage. Similarly, safety organizations warn that rushed licensing could lead to long-term risks from insufficient review of novel reactor designs.
The July 4, 2026 target for three civilian SMRs to be operational is aggressive and unprecedented in pace. Many analysts expect the criteria for “criticality” might be interpreted more loosely, such as partial fuel loading, to meet the deadline.
Companies with existing NRC-certified designs—including NuScale’s VOYGR and GE Hitachi’s BWRX‑300—have the clearest route to success. The latter design features passive safety and simplified construction models that align well with DOE expectations.
The timeline also tests the limits of financing and supply chain capability. Industry voices note that the DOE funding helps de‑risk projects, but billions more will be needed for actual build-out, and broader capital financing remains a hurdle.
As this pilot program unfolds, it promises to reshape U.S. nuclear policy—establishing precedents in licensing speed, federal support, and alliance with defense infrastructure. At stake is whether SMRs can emerge as a viable pillar of U.S. clean energy strategy or risk becoming the next ambitious policy effort sidetracked by safety and financial bottlenecks.
