Texas opens $350M fund for advanced nuclear development

Texas Gov. Greg Abbott and the Texas Advanced Nuclear Energy Office (TANEO) opened applications on April 1 for the $350 million Texas Advanced Nuclear Development Fund (TANDF). This is a reimbursement grant program targeting companies and organizations positioned to build advanced reactors, expand nuclear manufacturing and strengthen the state’s domestic fuel cycle supply chain. 

There are two primary programs under TANDF. The first program, dubbed the Project Development and Supply Chain Reimbursement Program, covers early-stage costs. These include technology development, university research, feasibility studies, site planning, Nuclear Regulatory Commission (NRC) early site permit work, licensing fees and fuel processing activities. Individual awards under this program are capped at the lesser of 50% of qualifying costs, or $12.5 million. 

The second program, called the Advanced Nuclear Construction Reimbursement Program, reimburses costs tied to NRC permit reviews, procurement of long-lead components and physical construction of advanced reactor projects. Individual awards under this program are capped at 50% of qualifying expenses, or $120 million. Awards are paid out on a rolling basis as expenses are incurred.  

To qualify, applicants must have, or reasonably expect to have, a docketed construction permit or license application with the NRC on or before Dec. 1. 

A third program authorized under House Bill 14 (HB 14), the Completion Bonus Grant Program (CBGP), would award funding on a per-megawatt basis for reactors that integrate with the Electric Reliability Council of Texas (ERCOT) grid. However, the Legislature did not appropriate funding for the program in the 2026-2027 state budget, leaving it inactive for now. 

Abbott signed HB 14 into law in June 2025, establishing TANEO under the governor’s office and creating TANDF as what state officials describe as the largest state-level nuclear energy investment in the country. 

TANEO was created to coordinate state nuclear development strategy, assist companies with permitting and regulatory navigation and evaluate applicants for TANDF funding. 

Applicants for the current round of funding must file a notice of intent by April 23, with full applications due by May 14, according to the governor’s office. TANEO expects to announce grant recipients in July. Eligible applicants include businesses, nonprofit organizations, governmental entities and higher education institutions. 

Photo by Sean P. Twomey from Pexels

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