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Introduced February 10, 2026 by James Risch · Last progress February 10, 2026
Creates a DOE Loan Programs Office account with up to $3.6 billion to cover a portion of capital cost overruns for qualifying advanced nuclear reactor projects that receive DOE loan guarantees, and authorizes the LPO Director to manage payments to the Federal Financing Bank under set conditions and caps. It also expands exceptions to a rule that otherwise prevents projects from receiving multiple federal or other program benefits, allowing projects partnered with certain federal power marketing administrations, TVA, military energy procurement entities, GSA, National Laboratories, or using fuel under the Nuclear Fuel Security Act to qualify for the additional benefits. Sets eligibility rules and oversight requirements for projects, limits borrower liability up to 120% of a point base estimate before federal support can apply, caps federal overrun payments per project (the lesser of 30% of the point base estimate or $1.2 billion), allows enhanced financing terms, and requires quarterly reporting and an interagency working group to advise on standards and best practices.
The bill aims to accelerate and de-risk financing and deployment of advanced nuclear projects—especially those tied to federal partners—by providing funding, guarantees, and stricter oversight, but it transfers notable fiscal risk to taxpayers, risks moral hazard and competitive distortions, and raises long-term environmental and administrative concerns.
Utilities, advanced nuclear developers, and their lenders gain federal cost-overrun protection and enhanced loan guarantees that reduce financing risk and make large reactor projects easier to finance.
The bill provides $3.6 billion in dedicated construction financing to accelerate grid-connected advanced nuclear deployment, which can speed project starts and grid capacity additions.
The bill preserves some private risk-sharing by capping borrower liability at 120% of the point estimate before federal payments, helping maintain private incentives to contain costs.
Taxpayers face direct fiscal exposure from the $3.6 billion appropriation and potential additional liabilities if guarantees or federal payments are triggered.
Generous federal guarantees and payments (including up to 200% of point estimates in some cases) risk creating moral hazard by reducing private lenders' incentives to rigorously monitor project risk.
Capping federal support at 30% of the point estimate or $1.2 billion for some elements may still leave projects exposed to large residual overruns, shifting costs to utilities, ratepayers, or causing overly conservative project scopes.