US Lawmakers Propose $10 Billion Investment for Fusion Energy Commercialization

The 'American Leadership in Fusion Act,' sponsored by Rep. Zoe Lofgren (D-CA) and Rep. Jay Obernolte (R-CA), aims to implement recommendations from the 'Fusion Forward' report, as well as recent reports from the Department of Energy (DOE) and the Fusion Industry Association. The proposed legislation includes $10 billion in direct investments for high-priority activities, the creation of a workforce development program, and the establishment of an Office of Fusion at the DOE.

Rep. Lofgren stated that the bill would initiate a new era of fusion energy development in the United States, while Rep. Obernolte emphasized its role in supporting research infrastructure and commercialization pathways to maintain US leadership in fusion technologies.

Key Recommendations for Fusion Development

The Commission on Scaling of Fusion Energy has made several recommendations to advance fusion power in the United States. These include a call for the US president to issue an executive order recognizing fusion power as critical to national security and energy dominance. This order would direct the DOE to set a national fusion goal to begin construction of more than one industry-led demonstration power plant by the end of 2028.

  • A one-time investment of $10 billion to support research and development facilities and expand existing commercialization programs.
  • Collaboration with the Nuclear Regulatory Commission (NRC) to explore mass manufacture licensing pathways for fusion technologies.
  • Concerted action to develop a robust supply chain and avoid potential chokepoints, paired with the DOE’s commercialization program.

Industry Response

The fusion industry has expressed support for the proposed legislation. Andrew Holland, CEO of the Fusion Industry Association, noted that while the private fusion industry has attracted $4.5 billion in investment over the past year, federal government partnership is essential for deployment within the next decade. Bob Mumgaard, CEO of Commonwealth Fusion Systems, commented that the act would facilitate the progress of nuclear energy towards grid connection, leveraging the capabilities of national laboratories, universities, and fusion companies to attract further private investment.

Holtec Submits Preliminary Safety Analysis Report for Palisades SMRs

Holtec has submitted the Preliminary Safety Analysis Report (PSAR) to the US Nuclear Regulatory Commission (NRC) for its Pioneer 1 & 2 SMR-300 units. This submission completes the second phase of the Construction Permit Application (CPA) process, which was initiated with the Limited Work Authorization (LWA) application and Environmental Report (ER) in December 2025.

The PSAR provides the NRC with detailed technical and safety information to support Holtec's application to construct two SMR-300 small modular reactors at the Palisades site in Covert Township, Michigan. These units, Pioneer 1 & 2, are designed to add 680 MW of generating capacity and will be located adjacent to the existing 805 MWe Palisades nuclear power plant. The twin-unit Pioneer plant will become part of the Palisades Energy Campus.

Regulatory Milestones and Technical Advancements

The PSAR submission follows several pre-submittal engagement meetings and technical interactions with NRC staff. Recent milestones in the SMR program include:

Holtec is also working with the NRC to review an issue where a single fuel assembly did not load as planned at the Palisades plant, which is currently in the final stages of fuel loading.

  • A novel civil construction method utilizing shop-fabricated modules, validated through testing at Purdue University, aims to reduce labor requirements compared to conventional construction. The associated Licensing Topical Report (LTR) was audited and accepted by the NRC in September 2026, with the Safety Evaluation Report (SER) expected by early November 2026.
  • An LTR defining a methodology for predicting soil-structure interaction (SSI) effects under various seismic and soil conditions was audited and accepted by the NRC in September 2026. The SER for this LTR is anticipated by the end of October 2026. This methodology is intended to support the deployment of a standard SMR-300 design across diverse global sites.
  • An LTR detailing an innovative instrumentation and control architecture was audited and accepted by the NRC in August 2026, with official regulatory approval expected in October 2026.
  • The NRC's draft SER for the LWA application, representing the first phase of the CPA, is anticipated in December 2026. The NRC audit for this application concluded in September 2026.

Next Steps

Upcoming development tasks include completing a Class 2 construction estimate, developing a 4D simulation of the entire plant to visualize the construction process, and finalizing confirmatory safety analyses for the plant's Final Safety Analysis Report (FSAR).

South Korea and U.S. Announce Major Nuclear Energy Cooperation

The governments of South Korea and the United States have jointly announced a significant agreement to build new megawatt-class nuclear reactors within the United States. This collaboration is intended to strengthen supply chains and foster cooperation in strategic industrial sectors, including energy, between the two countries. The agreement deepens the strategic partnership and reflects a shared commitment to implementing a trade deal.

The comprehensive cooperation framework outlines the construction of eight large-scale nuclear power plants: two APR1400s and six AP1000s. These reactors are intended to expand baseload power capacity and enhance U.S. energy security. Both the AP1000 and the APR1400 designs have received licensing from the Nuclear Regulatory Commission for construction in the U.S. The objective is to have all eight reactors under construction by 2030. The plan leverages U.S. technological expertise with South Korea's supply chain capabilities.

Project Participants and Funding

The parties involved in this agreement include the governments of both countries, Westinghouse Electric Company, Korea Electric Power Corporation, and Korea Hydro & Nuclear Power Co., Ltd. The agreement aims to utilize South Korea's construction capabilities to meet U.S. electricity demands.

The total planned funding allocation is $120 billion out of a $200 billion overall plan. Of this, $100 billion is designated for construction costs, with an additional $20 billion allocated for contingency reserves. To facilitate prompt construction, the Republic of Korea and the United States have agreed to cooperate on a $10 billion advance payment by the end of the year. This payment is primarily for the immediate purchase of long-lead items, in compliance with domestic legal requirements.

Additionally, potential investment by Korean companies in a significant minority interest in Westinghouse will be pursued. This arrangement is designed to facilitate the sharing of commercial gains from large-scale nuclear power plant projects, with detailed terms and conditions to be finalized through commercial negotiations at a later date.