Energy Policy Washington Agrees On

While energy policy in the US tends to be polarizing, nuclear energy enjoys broad support from both sides of the aisle. Republicans are drawn to nuclear’s energy security and reliability. Democrats see the appeal in its zero-emission power generation, which is critical for reaching climate goals. These same characteristics appeal to hyperscalers as well (read more).

With robust expectations for electricity demand growth, driven in part by data centers, nuclear has a key role to play in the US energy mix for decades to come. Government policy reflects this realization with support under President Biden continuing into the Trump Administration.

Nuclear Support During the Biden Administration

Under President Biden, the US signed the Declaration to Triple Nuclear Energy in late 2023 as part of COP 28. As of November 2024, 31 countries have endorsed the declaration, underscoring the broader global support for nuclear power. For the US, the goal is particularly lofty given just under 100 gigawatts (GW) of nuclear capacity in operation today, which is the largest fleet of any country in the world.

President Biden also signed into law the ADVANCE Act in July 2024, which passed with widespread bipartisan support. The Act was intended to enhance and modernize the U.S. Nuclear Regulatory Commission (NRC), the nation’s primary nuclear safety regulator.

In October 2024, the Department of Energy (DOE) signed contracts with six companies to support the production of nuclear fuel for advanced reactors. Included in that group were Centrus Energy (LEU), BWX Technologies (BWXT), and GE Vernova (GEV), which are also constituents of the Range Nuclear Renaissance Index (NUKZ). The acquired fuel will be used to support reactors under development as part of the DOE’s Advanced Reactor Demonstration Program, a key federal initiative to speed up the deployment of new reactor technologies.

Nuclear’s Policy Momentum Continues Under President Trump

Under the Trump Administration, energy policy shifted noticeably, with less support for wind and solar in favor of oil and natural gas (read more). However, nuclear has enjoyed continued strong support.

The Trump Administration has taken notable steps to promote nuclear development. In May, four Executive Orders were issued to further accelerate the adoption of nuclear power and address some challenges facing the industry. For example, one of those orders intends to bolster the nuclear workforce through new educational programs. Initiatives focused on nuclear fuel production and recycling can help reduce dependence on imported uranium.

In alignment with the declaration signed during the Biden Administration, an executive order reinforced the US policy to increase nuclear capacity from ~100 GW today to 400 GW by 2050. More immediately, the goal is to accomplish 5 GW of uprates for existing nuclear reactors and have 10 new large reactors under construction by 2030. With the US only adding 3 large reactors since 1996, policy support will be critical to helping achieve ambitious nuclear goals.

The buildout of additional nuclear capacity will also require more uranium. Energy Secretary Chris Wright has discussed the need for the US to grow its strategic uranium reserve. In terms of months of supply, US inventories are noticeably modest relative to China or the EU, despite the greater nuclear capacity in the US. Congress created a strategic uranium reserve in 2020, and the DOE first awarded supply contracts for the reserve in 2022.

US partners with the UK on nuclear and more

Last month, the US and the United Kingdom agreed to a Memorandum of Understanding for a Technological Prosperity Deal (TPD) in conjunction with President Trump’s UK visit. The TPD is meant to allow for collaboration in AI, civil nuclear, fusion, and quantum technologies. TPD hails the dawn of a golden nuclear age and highlights nuclear’s important role in national security and meeting the energy needs of the economy.

The UK is an attractive partner in nuclear with two major projects underway, including its first nuclear plant in 30 years at Hinkley Point C. The learnings from Hinkley Point C and its two reactors will help with the construction of Sizewell C, which was greenlighted in July and is estimated to cost 38 Billion GBP in 2024 prices. The UK government has a 44.9% stake in Sizewell C.

The UK also brings expertise in fusion. Existing nuclear power plants use fission, but fusion continues to be a focus of ongoing innovation and is often called the holy grail of nuclear. The UK stands out for its advancements in fusion, as home to the Joint European Torus Reactor (now decommissioning) and ongoing research work.

Bottom Line

Power has always been critical for the economy, but with US electricity demand poised for meaningful growth and an AI arms race underway, power generation is even more important and strategic today. Layering in climate considerations, nuclear represents a compelling solution. Supportive policy in the US reflects the importance of nuclear in the energy mix and the need for a revival of the domestic nuclear industry.

NUKZ is the underlying index for the Range Nuclear Renaissance Index ETF (NUKZ).

Related Research:

Data Centers Embracing Nuclear, SMRs for AI Needs

One Big Beautiful Bill and MLP/Midstream Implications

For more news, information, and analysis, visit the Nuclear Energy Content Hub.

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for NUKZ ETF, for which it receives an index licensing fee. However, NUKZ ETF is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NUKZ ETF.

Earn free CE credits and discover new strategies