The Oxford Institute for Energy Studies report, From Regulator to Investor: The Expanding Role of the U.S. Government in Nuclear Energy Innovation, examines how the U.S. federal government is taking a much more active role in nuclear energy, shifting from primarily regulating and funding research to providing direct financing, technology support, and equity-linked investment. Federal nuclear investment rose from an average of about $1.3–$1.4 billion annually in the 2000s and 2010s to more than $3.7 billion in FY2022. Rising electricity demand from AI and data centers, energy security concerns, supply-chain vulnerabilities, and competition with China and Russia are driving the shift.
The report highlights an expanding federal toolkit supporting advanced reactors, fuel production, and commercial deployment. Programs have provided billions of dollars to companies such as TerraPower and X-energy, while new pathways have been established for reactor testing, fuel production, and technology-inclusive nuclear licensing. A strategic partnership with Westinghouse combines a potential $17.5 billion DOE loan facility with an equity-linked federal interest tied to a planned pipeline of at least 10 AP1000 reactors.
Despite the expansion, major challenges remain. The U.S. would need to dramatically increase domestic uranium production and enrichment to support the planned expansion of nuclear capacity, while permanent nuclear-waste disposal remains unresolved. Concerns also remain over regulatory independence, the government’s role in selecting which nuclear technologies and companies receive support, and whether federal policies will remain consistent across future administrations.
