The United States is looking to aggressively expand its nuclear energy capabilities. The Department of Energy has set a target to quadruple nuclear energy capacity by 2050 and hopes to have 10 large reactors under construction by 2030.
As part of the most recent funding bill, Congress has provided significant funding for nuclear innovation. This includes $3.1 billion and repurposed funds allocated specifically for small modular reactors (SMRs) and the advanced reactor demonstration program.
With so much government money being poured into nuclear energy, does that make NuScale Power (SMR 2.91%) a buy?
NYSE: SMR
Key Data Points
The U.S. government is ramping up nuclear funding
With geopolitical risks rising, the United States is looking to fortify its domestic energy industry, and one key part of this is expanding its nuclear energy abilities. Nuclear energy is appealing because it has zero emissions, is highly efficient, and provides reliable base-load power.
Last year, the government made $800 million in funding available for Generation III+ light water SMRs. It awarded these funds to first movers, which included the Tennessee Valley Authority (TVA) and Holtec. NuScale wasn't selected for these funds; however, it is working with TVA, the first U.S. utility to submit a construction permit application to the Nuclear Regulatory Commission (NRC) for a modern SMR.
Image source: Getty Images.
TVA received funding specifically to deploy GE Vernova's Hitachi BWRX-300, which is undergoing pre-application review by the U.S. Nuclear Regulatory Commission (NRC). While TVA is moving fast with GE Hitachi, it has also signed a major agreement in September of 2025 with ENTRA1 Energy to develop up to six gigawatts of nuclear power using NuScale's power modules.
As part of its recent funding agreement, the U.S. government has repurposed $3.1 billion in funds for the advanced reactor demonstration program. The purpose is to move reactors from theoretical concepts into operational performance and deliver power to the grid. This program includes SMRs, high-temperature gas reactors, and sodium-cooled fast reactors.
One advantage for NuScale today is that it is the only company with an SMR with an NRC standard design approval. This has it well positioned among developers to compete for federal funding and, if successful, accelerate commercial deployments with government support.
NuScale is a highly speculative nuclear stock
The government's massive spending shows it is broadly bullish for the nuclear industry and is committed to building out nuclear energy capacity. This is also a good sign for SMR companies like NuScale Power.
NuScale stock is down 70% from its 52-week high and may look more appealing to investors than it did a few months ago. The company has one project, RoPower in Romania, where a final investment decision hasn't yet been made; management expects a decision in late 2026 or 2027. Meanwhile, its ENTRA1 deal with TVA remains in its early developmental stages without any firm commitments.
While the news about government funding is a positive development for advanced nuclear reactor developers, NuScale is still years away from commercial operations, making it one of the riskier nuclear stocks you could buy today.
