The U.S. Department of Energy (DOE) has relaunched a $900 million funding initiative to advance Generation III+ small modular reactors (SMRs), prioritizing technical merit over community benefits. This shift aligns with the Trump administration’s revised energy strategy and industrial priorities.
Key Details of the Reissued FOA
Officially designated DE-FOA-0003485, the funding opportunity was originally issued in October 2024 under the Infrastructure Investment and Jobs Act (IIJA) and the Consolidated Appropriations Act of 2024. It is jointly managed by the Office of Nuclear Energy and the Office of Clean Energy Demonstrations (OCED), with technical support from the National Nuclear Security Administration (NNSA).
The funding structure remains two-tiered:
- Tier 1: Up to $800 million for one or two "first mover" teams, including utilities, reactor vendors, EPC partners, and end-users, aiming to deploy initial SMR plants and establish a multi-reactor orderbook.
- Tier 2: Up to $100 million to address industry gaps such as design, licensing, supplier development, and site preparation.
Major Changes in Evaluation Criteria
The revised solicitation eliminates community benefit obligations, such as Diversity, Equity, and Inclusion (DEI) considerations and geographic diversity requirements. Applications will now be evaluated solely on four equally weighted technical criteria: Project Relevance and Impact, Technical Merit, Project Team and Resources, and Work Plan and Management.
Eligibility and Cost-Sharing Requirements
Tier 1 projects must feature Generation III+ light-water reactor designs with outputs between 50 MWe and 350 MWe. Applicants must demonstrate significant regulatory engagement with the Nuclear Regulatory Commission (NRC), a clear financing strategy, and milestone-based cost structures. DOE funding will cover no more than 50% of project costs.
Broader Implications
The reissued solicitation reflects a broader push for energy security amid rising U.S. electricity demand driven by industrial growth, AI adoption, and data center expansion. SMRs are seen as key to providing clean, firm capacity due to their modular design and compatibility with existing nuclear infrastructure.
With applications now judged solely on technical merit, all previous submissions must be resubmitted through FedConnect by April 23, 2025. This approach aims to streamline deployment while fostering innovation in nuclear technology.