The States Are Buying Reactors: Mapping State Nuclear and Energy Capital in 2026
On April 1, 2026, Texas opened applications for the $350 million Texas Advanced Nuclear Development Fund, the largest state nuclear appropriation in the country and the clearest signal yet that states have moved from studying advanced nuclear to funding it. Texas is not alone. Writing in ANS Nuclear News in January 2026, the Nuclear Energy Institute's Kristy Hartman counted 45 states engaged in nuclear policymaking in 2025, with legislatures introducing more than 350 bills and enacting more than 60 measures in 12 months. The interesting question for developers, suppliers, and utilities is no longer whether states will pay. It is what instrument each state is using, because the instrument determines when the money arrives and how much risk it actually removes.
This memo maps the 2026 state nuclear capital landscape by what each state offers: direct grants, ratepayer cost recovery, public ownership and offtake, and siting and ecosystem money. It reflects developments through September 16, 2026.
Key Takeaways
| 01 | Texas put $350 million on the table and set a hard eligibility clock. House Bill 14, signed June 20, 2025, funds construction reimbursements up to $120 million per project and development and supply-chain awards up to $12.5 million. Full applications closed May 14, 2026; construction applicants need a docketed NRC permit or license application by December 1, 2026. The state's nuclear office said it expected to select recipients in July 2026, but no awards had been published as of this writing. |
| 02 | New York is the only state acting as owner-developer. Gov. Kathy Hochul directed NYPA on June 23, 2025 to develop at least 1 GW of advanced nuclear upstate; 23 developers and eight upstate communities answered NYPA's RFIs, an RFQ for delivery partners followed on June 1, 2026, and the state's target is now an 8.4 GW "Nuclear Reliability Backbone." Developer qualification and host-site decisions are still pending. |
| 03 | Virginia's regulator blessed the spending, not yet the recovery. The State Corporation Commission's November 13, 2025 order approved Appalachian Power's decision to incur roughly $122 million in SMR site development costs at Joshua Falls. The rider petition that would actually charge customers comes separately, under statutory caps of $25 million per year and $125 million total, and had not surfaced publicly as of mid-September 2026. |
| 04 | Indiana built a full cost-recovery-plus-manufacturing stack in 2025. Senate Enrolled Acts 423 and 424 created an SMR pilot and 80% timely recovery of project development costs, and House Enrolled Act 1007 added a 20% tax credit on qualified SMR manufacturing investment. |
| 05 | The instrument matters more than the headline number. Grants are reimbursement-based and competitive; cost recovery is durable but utility-only; public ownership moves final-investment-decision risk; siting and ecosystem money, the Utah and Tennessee model, is small but arrives earliest. |
The six states profiled below are not the only ones spending, but they are the clearest examples of each approach, and together they show how quickly the state role has shifted from permission to capital.
Direct Grants: Texas Writes the Biggest Checks
Texas turned a working-group recommendation into the largest state nuclear fund in the country in under two years. House Bill 14, signed by Gov. Greg Abbott on June 20, 2025 and effective September 1, 2025, created the Texas Advanced Nuclear Energy Office (TANEO) and the $350 million Texas Advanced Nuclear Development Fund. The fund runs two programs. The Advanced Nuclear Construction Reimbursement Program caps awards at the lesser of 50% of qualifying costs or $120 million (Tex. Gov't Code § 483.204). The Project Development and Supply Chain Reimbursement Program caps awards at the lesser of 50% or $12.5 million (§ 483.203) and covers feasibility studies, site planning, front-end engineering, NRC licensing fees, manufacturing capacity, and university technology development. Notices of intent were due April 23, 2026; full applications closed May 14, 2026.
The eligibility gate is the real story. Construction applicants must have, or reasonably expect to have, a docketed NRC construction permit or license application by December 1, 2026. That requirement narrowed the field to a handful of projects, led by Dow and X-energy's Long Mott project at Seadrift (a construction permit application submitted in March 2025 and now under NRC review, with the NRC's environmental assessment and finding of no significant impact issued May 18, 2026) and Fermi America's Amarillo combined license application (submitted September 2025 and accepted by the NRC, the first gigawatt-scale light-water reactor COL accepted since 2009). Abilene Christian University's molten salt research reactor qualifies only for the supply-chain program.
"We've only got two eligible projects in the state that check that docketed box."
Jarred Shaffer, Director, Texas Advanced Nuclear Energy Office
Source: ANS Nuclear Newswire, April 9, 2026.
The award clock has slipped. TANEO told applicants it expected to select recipients in July 2026. As of September 16, 2026, the office's fund page lists both requests for applications as closed and no award has been posted. Two things have moved in the meantime. On August 17, 2026, the Department of Energy committed an additional $1 billion to the Dow and X-energy project, bringing federal support to roughly $2.15 billion, with X-energy now guiding to a construction permit in the first half of 2027. And on September 16, 2026, Blue Energy submitted a construction permit application to the NRC for a gas-to-nuclear plant at the Port of Victoria using up to five GE Vernova Hitachi BWRX-300 units. Submission is not docketing; the NRC's acceptance review typically takes about two months, which puts a third Texas project on the edge of the December 1 gate.
Kentucky runs the same play at licensing scale. Senate Bill 57, sponsored by Sen. Danny Carroll (R-Benton) and signed by Gov. Andy Beshear on April 8, 2026 (Acts ch. 56), creates the Nuclear Reactor Site Readiness Pilot Program. It authorizes grants covering up to one-third of the actual cost of applying for and procuring an NRC early site permit, construction permit, or combined license, capped at $25 million per project, with $75 million available for up to three projects. Applicants must post a surety bond guaranteeing repayment if licensing and construction milestones are missed, and regulated utilities may recover unreimbursed NRC licensing costs through the Public Service Commission. See our alert, Kentucky Puts $25 Million Per Project Behind Nuclear Siting.
Ratepayer Cost Recovery: Virginia and Indiana Move Risk to the Meter
Virginia's SCC approved Appalachian Power's SMR site-development spending in November 2025, a narrower step than widely reported. Under a 2024 law (HB 1491, Chapter 836, now codified at Va. Code § 56-585.1:15), APCo may ask the SCC to review its decision to incur SMR project development costs before it ever files for a certificate, and then recover approved costs through a rate adjustment clause, provided the annual revenue requirement does not exceed $25 million and total recovery does not exceed $125 million, excluding site acquisition. NRC licensing costs beyond early-site-permit work are excluded from the definition of recoverable development costs, and the authority sunsets July 1, 2034. The SCC's November 13, 2025 order found it reasonable for APCo to incur roughly $122 million at its Joshua Falls site in Campbell County. The petition to actually recover those costs was expected in mid-2026; as of mid-September 2026 we have not seen one filed publicly. Read the order before modeling: approval to spend is not approval to charge.
Dominion's companion statute shows the other Virginia design. SB 454 (Chapter 789) lets Dominion Energy Virginia recover 80% of SMR development costs for one facility on an accelerated basis through a rider, with the remaining 20% left to conventional recovery, and it expires December 31, 2029. That 80/20 split keeps shareholder money in the project in a way APCo's dollar caps do not.
Indiana enacted the most complete recovery framework of 2025. SEA 423 (signed May 1, 2025, Public Law 137) created an SMR partnership pilot program; SEA 424 (signed April 10, 2025, Public Law 48) directs the Indiana Utility Regulatory Commission to rule within 180 days on a utility's petition to incur SMR development costs and to approve timely recovery of 80% of approved costs, deferring the remaining 20% to the utility's next base rate case; and HEA 1007 (signed May 6, 2025, Public Law 217) added a tax credit equal to 20% of a taxpayer's qualified investment in SMR manufacturing in Indiana. Under SEA 424, recovery runs over the period costs are incurred or three years, whichever is shorter, and costs on a cancelled project remain recoverable if found reasonable and necessary.
Public Ownership and Offtake: New York Builds Its Own
New York is the only state whose answer to the financing gap is a state power authority balance sheet. Gov. Hochul's June 23, 2025 directive ordered the New York Power Authority to develop at least 1 GW of zero-emission advanced nuclear upstate. On January 7, 2026, NYPA reported 23 developer and partner responses (including Westinghouse, GE Hitachi, X-energy, TerraPower, Holtec, and Constellation) and eight upstate community responses to its RFIs. On June 1, 2026, NYPA issued an RFQ for experienced nuclear developers to deliver the 1 GW and an RFA for workforce training providers under a $40 million commitment over four years, a total figure, not $40 million per year as sometimes reported. Combined with 3.4 GW of existing upstate nuclear, the state's goal is now an 8.4 GW Nuclear Reliability Backbone, of which 5 GW would be new build.
"Nearly a year ago, I called on the Power Authority to lay the groundwork for the next era of emissions-free power in New York as part of my all-of-the-above approach to energy."
Gov. Kathy Hochul, announcing NYPA's developer RFQ and workforce RFA
Source: Office of the Governor, June 1, 2026. Photo: official portrait, Office of the Governor of New York.
The analytical foundation arrived on June 12, 2026, when NYSERDA and the Department of Public Service published the Advanced Nuclear Policy Options Paper, the first component of the Advanced Nuclear Master Plan. It evaluates the mechanisms a state can use to close three gaps: pre-FID development funding, construction financing exposed to overrun risk, and operating revenue sufficiency. Comments were due August 10, 2026 in DPS Case 26-E-0335; the full Master Plan is due by the end of 2026. NYPA has not chosen a technology or a host site, and says timeline and cost will depend on both, on licensing strategy, and on the delivery model. Watch for developer qualification decisions alongside the Master Plan.
Siting and Ecosystem Money: Utah and Tennessee Build the Base
Utah is spending modestly on state capacity and letting private capital carry the reactors. The Legislature appropriated $10 million for Operation Gigawatt in 2025. In November 2025, Gov. Spencer Cox announced a Brigham City "nuclear ecosystem" with Holtec International and Hi Tech Solutions: $750 million of planned private investment, roughly 1,350 jobs (700 in construction, 650 permanent), a workforce training and certification center, component manufacturing, and eventually up to 10 SMR-300 units around the state by the mid-2030s. The 2026 session added H.B. 545, which created the Energy Development Infrastructure Fund (Utah Code § 79-6-410), a revolving loan fund under the Office of Energy Development that lends to public entities for infrastructure supporting nuclear generation and transmission, with an initial $5 million, and H.B. 78, which established a Nuclear Energy Regulatory Office within the Department of Environmental Quality and directed it to pursue expanded NRC Agreement State status for fuel-cycle activities.
Tennessee keeps compounding. Gov. Bill Lee's FY 2027 budget carries $38 million in one-time nuclear money: $25 million more for the Nuclear Energy Supply Chain Investment Fund at the Department of Economic and Community Development (bringing that fund's cumulative appropriations to $85 million since FY 2024), $10 million for nuclear-sector Governor's Investment in Vocational Education grants, and $3 million for a nuclear energy and cybersecurity academy at Tennessee Tech. The fund is already writing checks: on July 15, 2026, TRISO-X received $11 million toward its Oak Ridge fuel fabrication campus. See our memo, Tennessee's FY27 Budget Builds a Nuclear Supply Chain.
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How the Models Compare
The six featured states sort into four instruments: grants (Texas, Kentucky), cost recovery (Virginia, Indiana), public ownership and offtake (New York), and ecosystem and siting money (Utah, Tennessee). The table below scores each on what it delivers and when.
The biggest checks arrive last; the durable money runs through a rate base.
State Nuclear Capital Instruments at a Glance
| State | Instrument | Headline capital | Status (Sept. 2026) | Our take |
|---|---|---|---|---|
| Texas | Reimbursement grants | $350M ($120M/$12.5M caps) | Applications closed May 14; awards not yet posted | Biggest check, but reimbursement-only and gated on NRC docketing; rewards projects already de-risked |
| New York | Public ownership + offtake | 1 GW NYPA build; $40M workforce (4 yrs) | RFQ issued June 1; Master Plan due Dec. 2026 | Slowest to award, most valuable if won; a public balance sheet absorbs pre-FID risk no grant can |
| Virginia | Ratepayer cost recovery | ~$122M spend approved; $25M/yr, $125M cap | Recovery petition not yet public | Durable and appropriation-proof, but utility-only; dollar caps, not a percentage, limit ratepayer exposure |
| Indiana | Cost recovery + 20% mfg. credit | 80% timely recovery; 20% credit | Laws effective; pilot open | The quiet best-in-class for utilities and suppliers alike; recovery plus a manufacturing credit in one state |
| Kentucky | Licensing grants | $25M/project, $75M total | Signed Apr. 8, 2026 | Meaningful at the permitting stage, but one-third cost share leaves licensing risk with the developer |
| Utah | Loans + ecosystem money | $10M state; $5M loan fund; $750M private | Funds stood up 2026 | Cheapest state exposure per announced dollar; real test is whether the loan fund gets capitalized at scale |
Sources: Texas HB 14 (2025); NYPA and Office of the Governor of New York; Va. Code § 56-585.1:15 and SCC order of Nov. 13, 2025; Indiana SEA 423, SEA 424, HEA 1007; Kentucky SB 57 (2026); Utah H.B. 545 and H.B. 78 (2026).
Our read: cost recovery de-risks projects; grants decorate them. A reimbursement grant pays a project that already survived its riskiest phase, while Virginia- and Indiana-style riders move pre-FID and preconstruction risk onto a rate base the moment a regulator signs, with no annual appropriations fight and no award cycle. If we are right, the 2027 sessions will show copycat cost-recovery statutes outnumbering new grant funds, and merchant developers without a utility partner will keep chasing Texas-style money that arrives too late to change a final investment decision. Texas's own experience makes the point: four months after applications closed, the money is still in Austin.
What the Math Looks Like for One Licensing Budget
Take a developer with a $25 million NRC licensing and early site program. The same spend produces very different state checks. In Texas, the Project Development and Supply Chain Reimbursement Program covers 50% of qualifying costs up to $12.5 million; the cap binds exactly at a $25 million spend, so the developer recovers $12.5 million, after the fact and only if selected. In Kentucky, SB 57 covers up to one-third, about $8.3 million, within the $25 million per-project ceiling, with a surety bond and milestone-based repayment obligations attached. A Virginia utility putting the same $25 million into SCC-approved site development under § 56-585.1:15 can recover the full amount from ratepayers, amortized over at least five years, because the $25 million annual and $125 million lifetime caps do not bind at that size, though NRC licensing fees themselves fall outside the definition. An Indiana utility under SEA 424 recovers 80% (about $20 million) on a timely basis and defers the remaining $5 million to its next base rate case. Same invoice; four different risk positions.
A $25 million licensing program recovers between a third and all of its cost depending on the state and the applicant's status.
One $25 Million Licensing Budget, Four States
| State and instrument | Share covered | State or ratepayer dollars | Strings attached |
|---|---|---|---|
| Texas PDSCRP (grant) | 50%, capped at $12.5M | $12.5M | Competitive; reimbursement after spend; award timing uncertain |
| Kentucky SB 57 (grant) | Up to one-third, capped at $25M | ~$8.3M | Surety bond; repayment if milestones missed |
| Virginia § 56-585.1:15 (rider) | Up to 100% of approved costs | $25M over 5+ years | Utility-only; SCC prudence finding; $25M/yr, $125M caps; NRC fees excluded |
| Indiana SEA 424 (rider) | 80% timely, 20% deferred | $20M now, $5M later | Utility-only; IURC approval within 180 days |
Sources: Tex. Gov't Code § 483.203; Ky. SB 57 (2026); Va. Code § 56-585.1:15; Ind. SEA 424 (2025).
The next 15 weeks decide who is eligible in Texas and what New York's model will look like.
Timeline and Next Steps
| Date | Milestone |
|---|---|
| May 14, 2026 | Texas TANDF applications closed; July 2026 award target passed without a public announcement |
| Aug. 10, 2026 | Comments closed on New York's Advanced Nuclear Policy Options Paper (Case 26-E-0335) |
| Sept. 16, 2026 | Blue Energy files NRC construction permit application for Port of Victoria, Texas |
| Dec. 1, 2026 (76 days out) | Texas NRC-docketing eligibility date for the current TANDF construction cohort |
| Dec. 31, 2026 (106 days out) | New York Advanced Nuclear Master Plan due; NYPA developer qualification decisions expected |
| Jan. 2027 | Most legislatures convene; watch cost-recovery and site-readiness bills modeled on Indiana, Virginia, and Kentucky |
| First half 2027 | X-energy's guidance for NRC issuance of the Long Mott construction permit |
| Pending | Appalachian Power rider petition at the Virginia SCC; TANDF award announcements |
What to do now: Developers with a Texas application in the queue should confirm their December 1 docketing position with the NRC now, because the office has said the cohort is small and the gate is statutory. Utilities in Indiana, Virginia, and Kentucky should treat the 2025 and 2026 statutes as live capital and file for development-cost review before the 2027 sessions revisit them. Suppliers should map Indiana's 20% manufacturing credit and Tennessee's supply chain fund against their expansion plans, since both are paying out today. Anyone targeting New York should qualify under the NYPA RFQ and comment on the Master Plan as it takes shape, because the state balance sheet is the only instrument on this list that can carry a project through final investment decision.
References
- Office of the Texas Governor, Governor Abbott, TANEO Boost Advanced Nuclear Construction, Apr. 1, 2026; Texas Advanced Nuclear Development Fund program pages.
- Texas Legislature, H.B. 14 (89th Reg. Sess., 2025), enrolled text; LegiScan bill history.
- ANS Nuclear Newswire, "Texas opens $350M in nuclear funding," Apr. 9, 2026; Utility Dive, "Texas opens $350M advanced nuclear grant program."
- ANS Nuclear Newswire, "X-energy, TerraPower share updates on advanced reactor projects," Aug. 17, 2026; "Project Matador joins EIS pilot program," Mar. 24, 2026; World Nuclear News, "Blue Energy submits first construction application to NRC," Sept. 16, 2026.
- Kentucky General Assembly, S.B. 57 (2026 Reg. Sess.), Acts ch. 56; WSAZ, "Gov. Beshear signs bill aiming to lower utility costs through nuclear energy," Apr. 10, 2026; Kentucky Lantern, Feb. 11, 2026.
- NYPA, Governor Hochul directs NYPA to develop advanced nuclear, June 23, 2025; RFI responses, Jan. 7, 2026; workforce funding, Dec. 9, 2025; Office of the Governor of New York, RFQ and RFA announcement, June 1, 2026.
- NYSERDA and DPS, Advanced Nuclear Policy Options Paper announcement, June 12, 2026.
- Cardinal News, "Regulators give Appalachian Power green light to incur SMR site costs," Nov. 14, 2025; Va. Code § 56-585.1:15; Virginia HB 1491 (2024) and SB 454 (2024); McGuireWoods, 2024 Virginia SMR legislation alert.
- Taft Law, Indiana SMR laws bulletin; Indiana SEA 423, SEA 424, and HEA 1007 (2025).
- ANS Nuclear Newswire, "Operation Gigawatt looks to Brigham City, Holtec, and Hi Tech Solutions," Nov. 19, 2025; Utah H.B. 545 and H.B. 78 (2026); Circle of Blue, "Utah's Big Nuclear Bet."
- Sycamore Institute, Summary of Gov. Lee's FY 2027 Recommended Budget; X-energy, "TRISO-X Awarded Tennessee Grant," July 15, 2026.
- ANS Nuclear Newswire, "Where states stand on nuclear," Jan. 12, 2026; NEI, State Legislation and Regulations Supporting Nuclear Energy.
© Copyright 2026. The views expressed herein are those of the author(s) and not necessarily the views of Crawford Partners, its management, its subsidiaries, its affiliates, or its other professionals. Crawford Partners is not a law firm and cannot provide legal advice.