The small modular reactor (SMR) revolution has reached a critical juncture in 2025, with state legislatures across America embracing nuclear technology like never before while the industry grapples with persistent economic and technical challenges. It represents a dramatic shift from decades of nuclear skepticism to aggressive policy support driven by surging electricity demand from artificial intelligence infrastructure and climate commitments requiring carbon-free baseload power. Let's take a quick look at how we got here, and efforts across the U.S. to roll out this new technology. 

The Nuclear Revolution

In 1951, in Arco, Idaho, electricity was generated for the first time by a nuclear reactor - the EBR-1 (a 'must visit' if you're ever in Idaho).  This prompted a wave of excitement and innovation.  Nuclear power was seen as a the answer to the world's most pressing problems - limitless cheap, clean power would propel the world into a golden age. It was exciting, futuristic! The world's first commercial nuclear power station, Calder Hall at Windscale, England was connected to the national power grid on 27 August 1956, just five years later.  By the late 1980s, global nuclear capacity had risen to over 300GW. 

By then, the dream of the 1950s was turning into something of a nightmare. Growing concerns about nuclear accidents, nuclear proliferation, nuclear terrorism and radioactive waste disposal led to massive worldwide opposition to new projects, and regulatory burdens rose to levels which made the construction of plants difficult, time consuming and very expensive. High profile accidents such as at Three Mile Island in Pennsylvania in 1979 and then Chernobyl in Ukraine in 1986 heightened fears and led to moratoriums on new reactors being built and nuclear power phased out in many countries. By the time Calder Hall closed in 2003, the golden age of nuclear power was just a memory. 

In recent years, however, nuclear power has experienced a renaissance. The pressing need to phase out fossil fuel power generation and the intermittent issues of other forms of power - the wind doesn't always blow, the sun doesn't always shine - have led many countries, including the U.S. to return to nuclear power as part of the new, carbon-free electricity generation mix. But the old problems persist - it is incredibly expensive to build and operate traditional nuclear power stations and it takes many years, meaning that nuclear power is often the most expensive way to generate electricity, while remaining the most reliable. Most countries have now conceded that nuclear power must be part of the new generation mix, and so the race is on to make it cheaper and quicker to get plants up and running. Enter small modular reactors (SMRs). 

The SMR Promise: Technical Innovation Meets Energy Transition Demands

Small modular reactors represent a fundamental reimagining of nuclear power technology. Unlike conventional nuclear plants that typically generate 1,000+ megawatts, SMRs produce 5-300 megawatts per module through factory-assembled components that can be transported to deployment sites. NuScale's flagship design generates 77 megawatts per module, with up to 12 modules creating a 924-megawatt facility on just 35 acres compared to nearly 500 acres required for traditional nuclear plants of similar capacity.

SMRs address the clean energy transition's most pressing challenge: providing 24/7 carbon-free electricity to complement variable renewable sources. The International Energy Agency projects 120 GW of global SMR capacity by 2050 under net-zero scenarios, with applications extending beyond electricity generation to industrial process heat, hydrogen production, and data center power. Google's October 2024 agreement with Kairos Power for 500 MW by 2035 marked the world's first corporate SMR purchase, signaling growing tech sector interest in dedicated nuclear power for AI infrastructure.

Current SMR designs span multiple technologies, from NuScale's pressurized water reactors to Kairos Power's fluoride salt-cooled systems and X-energy's high-temperature gas-cooled reactors. Only NuScale has achieved full Nuclear Regulatory Commission design certification, receiving approval for its upgraded 77-megawatt design in January 2025. However, international competition intensifies as China operates the world's first commercial SMR (HTR-PM) and Russia deploys floating nuclear plants.

The Deployment Reality: Persistent Challenges Despite Policy Support

The SMR industry's most significant setback occurred in November 2023 when NuScale and Utah Associated Municipal Power Systems cancelled their flagship Carbon Free Power Project after costs escalated from $5 billion to $9.3 billion. Original electricity price estimates of $55 per megawatt-hour increased to $89 per megawatt-hour, making SMRs uncompetitive with renewable energy sources that have seen dramatic cost reductions.  Some experts conclude that small modular reactors are more likely than larger designs to achieve long-term “price and performance parity” with conventional energy sources, such as gas, but only with substantial, ongoing support from the U.S. government.

Technical hurdles compound economic barriers.  A critical bottleneck has emerged around High-Assay Low-Enriched Uranium (HALEU) fuel, required by nine out of ten advanced reactor designs funded by the U.S. government. Only Russia currently produces HALEU at commercial scale, creating supply chain vulnerabilities.

Regulatory processes, while improving, remain lengthy and expensive. Even with NuScale's design certification, individual project licensing continues to face uncertainty around emergency planning zones, multi-module operations, and integration with existing grid infrastructure. The nuclear industry faces widespread retirements of experienced professionals while struggling to develop specialized skills in advanced manufacturing, digital technology, and modular construction techniques.

The Legislative Landscape: States Lead the Nuclear Renaissance

The 2025 legislative session represents a watershed moment for nuclear energy policy in America. BillTrack50 analysis found over 100 bills in 2025 legislative sessions which addresses the development of SMRs. The map below shows the distribution of these bills, click a state for details of the legislation:

This legislative activity divides into four primary categories: financial incentives, regulatory reform, strategic planning, and cost recovery mechanisms.

Financial Incentive Legislation: States Compete for Nuclear Investment

Indiana has enacted the nation's most aggressive SMR support framework through three complementary bills. HB1007, signed into law on May 6, 2025, establishes an SMR partnership pilot program with a 20% tax credit for manufacturers, providing a minimum of $280 million in tax incentives. The legislation enables partnerships between utilities and educational institutions, military installations, and private entities to accelerate deployment. SB423 expands the pilot program structure, while SB424 allows utilities to recover SMR development costs from ratepayers before regulatory approval—a significant shift of financial risk from developers to consumers.

Not content with being a long-term titan in the oil industry, and also at the forefront of renewable technologies such as wind and solar, Texas has positioned itself as the national leader in nuclear investment with HB14, enacted effective September 1, 2025, creating the Texas Advanced Nuclear Energy Office within the Governor's office and establishing a $350 million funding program—the largest state investment in nuclear energy nationwide. 

Colorado reversed decades of nuclear opposition with HB1040, signed April 1, 2025, adding nuclear energy to the state's statutory definitions of "clean energy" and "clean energy resource." This seemingly modest change opens nuclear projects to local clean energy grants previously reserved for renewable technologies, signaling Colorado's willingness to embrace nuclear power after operating without nuclear plants for over 35 years.

Regulatory Reform: Streamlining Nuclear Deployment

Louisiana's SB127 authorizes expedited environmental permitting for SMRs through the Department of Environmental Quality, advancing through the Senate Committee on Environmental Quality. The legislation aims to reduce regulatory barriers without direct funding, focusing on process improvements rather than financial incentives.

Wisconsin's SB125, enacted as Wisconsin Act 12 on July 2, 2025, requires the Public Service Commission to conduct a comprehensive nuclear power siting study while establishing a 150-day approval timeline for SMR certificates. The legislation allocates $2 million in the 2025-27 budget for the study, significantly accelerating SMR approval processes and site identification efforts.

Illinois continues efforts to fully repeal its nuclear construction moratorium through HB3604, HB4055, and SB1527, which would remove prohibitions on reactors exceeding 300 megawatts. Illinois already generates 54% of its electricity from nuclear power and seeks to expand capacity beyond current SMR allowances, building on the partial moratorium repeal achieved in 2023.

Strategic Planning and Study Initiatives

South Carolina's comprehensive Energy Security Act (H3309), signed May 12, 2025, expands the Nuclear Advisory Council's role and authorizes SMR pilot programs endorsed by the council. The legislation requires utilities to evaluate SMR deployment potential while creating a comprehensive nuclear planning framework funded through Office of Regulatory Staff assessments.

Multiple states have established task forces and study commissions to evaluate nuclear opportunities. Arkansas HB1572 creates a legislative task force to study nuclear energy opportunities, while Delaware SCR18 establishes a task force examining small-scale nuclear power feasibility. North Dakota HB1025 creates a nuclear energy study commission, and Oklahoma SB130 establishes a nuclear energy task force to evaluate deployment prospects.

Cost Recovery and Regional Cooperation

Maryland's Next Generation Energy Act (HB1035/SB937), effective June 1, 2025, requires the Maryland Energy Administration to pursue agreements with neighboring states and federal agencies for new nuclear generation. The legislation facilitates interstate nuclear collaboration and regional cost-sharing mechanisms, recognizing that nuclear projects may benefit from multi-state cooperation.

California faces significant opposition to AB305, which would exempt SMRs up to 300 megawatts from the state's 1976 nuclear moratorium. The bill requires the Public Utilities Commission to develop plans for increasing nuclear procurement while phasing out natural gas generation. Environmental groups have mounted substantial opposition, leading to postponed hearings in April 2025, though success would create a massive West Coast market for SMR deployment.

Funding mechanisms distribute costs across different stakeholders. Taxpayers bear the largest burden through direct state investments ($350 million in Texas, $280+ million in Indiana tax credits), while ratepayers face increasing costs through utility cost recovery mechanisms, particularly in Indiana where customers fund development costs before regulatory approval. Businesses and utilities receive benefits through tax credits and grant eligibility, though they also face regulatory compliance costs.

Success rates remain high, with approximately 58% of identified bills enacted or advancing strongly through state legislatures. This contrasts sharply with traditional nuclear opposition, suggesting genuine political momentum behind SMR deployment efforts.

Trump Administration Impact: Federal Policy Acceleration

The Trump administration has implemented the most comprehensive nuclear energy policy overhaul in decades, with President Trump declaring a national energy emergency on his first day in office and signing four major nuclear executive orders on May 23, 2025. These policies establish ambitious goals of quadrupling nuclear capacity from 100 GW to 400 GW by 2050, with near-term targets of 5 GW in power uprates and 10 new large reactors under construction by 2030.

The administration's regulatory reforms focus on 18-month licensing deadlines for construction and operation licenses, dramatically reducing traditional timelines. The Nuclear Regulatory Commission faces mandated workforce restructuring to increase new reactor licensing staff while reducing overall employment, creating efficiency pressures that may accelerate or complicate review processes.

Federal SMR funding remains robust with the Department of Energy maintaining $900 million in next gen large scale and SMR program support.  The administration has released 20 metric tons of high-assay low-enriched uranium from strategic reserves to support private sector projects, addressing critical fuel supply bottlenecks.

International cooperation receives enhanced priority through efforts to negotiate at least 20 new nuclear cooperation agreements and counter the 87% foreign dominance in global reactor construction. The administration's approach emphasizes export promotion and strategic competition with China and Russia in international nuclear markets.

Prospects for SMR Deployment

The convergence of state legislative support, Trump administration policies, and technology sector demand creates unprecedented opportunities for SMR deployment in America. The combination of $630+ million in state taxpayer investments, streamlined federal regulations, and private sector partnerships establishes the strongest policy foundation for advanced nuclear technology in decades.

We can expect to see a lot more legislation of this kind passing through the states over the years to come.  It remains to be seen whether the public will accept this new iteration of the old nuclear dream, or will there be another backlash? So far, faced with climate fears and cost of living concerns, public opposition has been muted, but that may change as modular plants start appearing around the country. There may also be strong public opposition to large and increasing public investment in these new technologies, particularly in these DOGE days.

The next five years will prove decisive for SMR prospects in America. The alignment of federal policy, state legislative support, and private sector investment creates the strongest foundation for advanced nuclear deployment in decades. Whether this translates into commercial success depends on the industry's ability to overcome persistent economic and technical challenges while delivering on decades of promises about nuclear technology's potential.  

About BillTrack50 – BillTrack50 offers free tools for citizens to easily research legislators and bills across all 50 states and Congress. BillTrack50 also offers professional tools to help organizations with ongoing legislative and regulatory tracking, as well as easy ways to share information both internally and with the public.