Energy’s Budget Prioritizes Nuclear Energy Plans Outlined in Executive Orders

The Office of Management and Budget (OMB) $46.3B FY 2026 budget request for the Department of Energy includes $1.37B for the Office Nuclear Energy demonstrating the Administration’s commitment to the nation’s nuclear energy revitalization.

Proposed programs prioritize advancements in NE production, infrastructure modernization, advanced research and development of next-generation nuclear technologies and ensure secure and reliable energy sources to meet AI-related and data center demands.

An additional $750M from the Loans Program Office incentivizes private sector investments to restart dormant nuclear reactors and complete ongoing construction projects. The government's goal is to build 10 new large reactors by 2030.

In May, President Trump signed four executive orders (EOs) aimed at achieving these goals. Planned initiatives include:

• Developing and refining Nuclear Regulatory Commission (NRC) testing processes to accelerate nuclear reactor licensing and approval processes, especially for reactors that have been safely tested by DOE
• Reforming nuclear reactor regulations and establishing deadlines to approve new construction and operation licenses within 18 months with three pilot reactors achieving criticality by July 2026
• Increasing U.S. nuclear capacity by 300 Gigawatts over the 25 years
• Investigating fuel recycling, reprocessing and disposal programs for spent nuclear waste
• Maximizing nuclear fuel production via increased mining, enrichment, conversion and deconversion capabilities and by leveraging DOE-support industry consortia and private sector projects
• Increase U.S. nuclear energy exports through financial strategies for domestic projects, promoting nuclear trade and providing financial and technical support for foreign NE adoption
• Shoring up the nation’s nuclear workforce through education pathways and apprenticeship programs in collaboration with the National Laboratories and academic institutions
• Accelerating the design, construction, testing and operation of nuclear reactors on federally owned land and military bases within the next three years to provide high-density energy sources that are not susceptible to external threats or grid failures
• Designating AI data centers as critical defense infrastructure and initiating processes to build and operate an advanced nuclear reactor to support AI or other critical infrastructure by FY 2027
• Deploying nuclear reactors within the U.S. and at military bases in collaboration with the Department of Defense to support AI infrastructure and related energy demands.

However, Secretary Wright warned Congress during his recent testimony that the government must “get out of the way” to win the AI referring to nuclear energy to support AI as the “next Manhattan Project.”

“It’s critical that the United States is the leading nation in AI.” Wright said at the Advanced Research Projects Agency-Energy (ARPA-E) Energy Innovation Summit. “And to do that we have to be the leading nation in growing our energy supply. AI is just an energy-intensive manufacturing industry. It takes the highest form and the most expensive form of energy, electricity, and turns it into intelligence. And the only way we will achieve that, the only way we’ll get there is if we can grow our energy system faster and faster and faster. Nuclear is the one that could burst through, but we need to we need to fix some problems to stay on.”

Achieving these goals requires reprioritization of the U.S. nuclear energy programs.

Federal Contracting in Nuclear Energy

The Department of Energy Office of Nuclear Energy awarded $3.7B in federal contracts since FY 2023 (FY 2025 data includes a partial year). During this time, policy directives favored growth in emerging clean and green energy technologies with NE resources focused on maintaining legacy infrastructure. Research and Development (R&D), Information Technology (IT) and Professional Services accounted for 4% of contract obligations and with only $1,030.00 awarded for Architecture, Engineering and Construction (AEC).

 

Current policy creates bring NE back to the forefront of American energy production indicating potential increases in all four market sectors. And although the FY 2026 DOE budget reduces NE funding by $100M (-6%) below FY 2025, the distribution reflects the focus change toward infrastructure modernization and development and initiatives within the EOs.

 

Contractors should look for increased multi-faceted opportunities across IT, R&D and AEC and PS across multiple agencies as the nation ushers in “America’s Nuclear Renaissance.”   

For more analysis on the FY 2026 Federal Budget check out the FY 2026 President’s Budget Request – GovWin FMA’s First Take. For more information on current and projected NE subscribe to Deltek’s GovWin IQ and access in-depth contracting analysis through Federal Market Analysis.