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The US nuclear industry says it is essential to strengthen lobbying, saving on the Inflation Reduction Act tax credit and meeting artificial intelligence-fueled energy needs.
On Monday, lawmakers from The Ways and Means Committee, who writes tax law, announced a bill in 2029 to phase out nuclear energy subsidies.
Lobbyists are now competing to persuade lawmakers to withdraw or ease subsidies for the nuclear industry. This had received more bipartisan support until recently than other low-carbon energy technologies such as wind and the solar.
“You’ll see an aggressive push,” said Frank Maisano, a partner in the policy and resolution group at law and lobbying company Bracewell.
In the first quarter of 2025, nuclear companies and industrial groups increased their spending on lobbying. Oklo, a nuclear technology company backed by Openai CEO Sam Altman, spent $424,000 on an increase of over 500% from the previous year.
Oklo CEO Jacob Dewitte said the way and means the proposal “defeat” the U.S. nuclear sector “defeat.”
“It’s difficult to overstate the value of a tax credit by helping to develop risky early stage capital and projects. …If it’s about leading and dominating this space, you’ll need to use all the tools in the tool belt.”
Nuscale’s power and terrapower, nuclear reactor developers and the Nuclear Energy Institute also increased spending. Constellation Energy, which partnered with Microsoft to reopen its 3-mile island plant in Pennsylvania, spent more than $1.7 million lobbying across its portfolio in the first quarter, up 16%.
Industry advocates said they aim to appeal to moderates such as Alaska Sen. Lisa Markowski and South Carolina Gov. Henry McMaster, who already hosts nuclear facilities in the state. They also hope to encourage intervention from President Donald Trump, who praised nuclear development.
Next week, the administration is set to issue an executive order to accelerate the construction of nuclear power plants by amending federal safety regulations.
“What emerges from the path and the means is worry and disappointment,” said Heather Reims, civic president of Responsible Energy Solutions, a central energy lobby group. “We’re not hitting a mark on what the president’s nuclear goal is.
The lobbyists are also expected to oppose the time frame proposed in the draft, threatening the development of new technologies, such as small modular reactors (SMRs), which are important to meet the fuel supply and energy needs of AI.
“We want to encourage the nuclear industry,” said Republican lobbyist Eric Levine. “If we don’t bring energy to the grid, all AI technologies in the world will be useless if they can supply electricity.”
However, some nuclear companies see the cuts as an opportunity to bring private capital to the sector.
“Industrials that rely on federal subsidies tend to be less rut-held and less favorable for innovation,” said Isaiah Taylor, CEO of Valar Atomics. “I like the direction the administration is taking on this and it can make it faster in private.”
