Trump's Nuclear Energy Policies
Description
On May 23, 2025, President Donald Trump issued four executive orders aimed at significantly overhauling the U.S. nuclear industry. The stated goal is to boost domestic nuclear deployment and quadruple U.S. nuclear power capacity in the next 25 years or by 2040.
During a live signing event, President Trump described nuclear as a "hot industry," "brilliant industry," and "very safe and environmental". These measures are intended to enhance America's energy security and support growing energy demand, particularly from the AI and defense sectors. Secretary of Interior Doug Burgum highlighted the rollback of over 50 years of overregulation as a key aspect. Secretary of Defense Pete Hegseth stated that "Energy security is national security," emphasizing nuclear power's importance for military reliability.
Key directives from the executive orders include:
- Reforming the Nuclear Regulatory Commission (NRC) through a "wholesale regulatory revision" of the licensing regime on a truncated timeline, with a call for a "substantial reorganization" of NRC staff.
- Prioritizing the rapid deployment of advanced nuclear technologies, including small modular reactors (SMRs). One order directs the Secretary of the Army to establish a program to build a nuclear reactor at a domestic military installation to begin operations within three years.
- Powering critical infrastructure and national security systems, designating AI data centers at or coordinated with Department of Energy (DOE) facilities as critical defense facilities and their nuclear power sources as defense critical electric infrastructure. The Secretary of Energy is tasked with working with the private sector to deploy advanced nuclear technology at DOE sites within 30 months to power AI infrastructure and meet national security objectives.
- Supporting the nuclear fuel cycle by invoking the Defense Production Act. This includes directing the Secretary of Energy to release at least 20 metric tons of high-assay low-enriched uranium (HALEU) into a fuel bank and enabling privately-funded fuel recycling, reprocessing, and fabrication capabilities at Federal sites. The orders also aim to pave the way for the U.S. to regain its lead in producing nuclear fuel, as it is currently dependent on other countries for enrichment.
- Exploring the use of categorical exclusions under the National Environmental Policy Act (NEPA) for constructing advanced nuclear reactor technologies on Federal sites.
- Prioritizing the issuance of security clearances to support the rapid distribution and use of nuclear energy and fuel cycle technologies.
- Promoting American nuclear exports by leveraging federal resources, including diplomatic engagement and negotiations for agreements under section 123 of the Atomic Energy Act to access new markets.
Industry leaders have voiced support. Joe Dominguez, CEO of Constellation Energy, the largest publicly traded nuclear company, highlighted that regulatory delay and permitting issues "will absolutely kill you" and noted strong interest from hyperscalers needing reliable energy for AI data centers. He praised the created energy dominance council for expediting the process. Jeff Merrifield, CEO of Oklo, also spoke positively about changes to permitting dynamics. Scott Nolan, CEO of General Atomics, sees nuclear as a perfect solution for powering AI data centers.
However, implementation faces questions and skepticism. Potential conflicts exist with recent House budget decisions that shortened the eligibility window for key nuclear tax incentives and reduced funding for the DOE Loans Program Office (LPO), potentially making LPO financing less accessible despite the orders' instructions to use loan programs. It's also unclear how a potential reduction in NRC staff would support rapid license growth.