Nuclear Power in Texas: New Laws and Small Modular Reactors

The basics

On May 23, 2025, the President signed executive orders aiming to have 10 large reactors under construction by 2030 and to add 300 gigawatts of new nuclear capacity by 2050¹. The orders directed faster reviews at the Nuclear Regulatory Commission, the federal safety regulator, including a final decision on new reactor applications within 18 months, and told the agency to reconsider its radiation exposure limits¹².

Supporters of the orders in the nuclear industry welcomed them, while the Union of Concerned Scientists warned they could compromise the regulator's independence and raise accident risks¹.

The 2025 federal budget and tax law ended clean electricity tax credits early for new wind and solar projects but kept them for nuclear and several other sources, with a phase-out for projects that begin construction in 2034 or later³. The 2024 Republican platform pledged to expand energy production from all sources, including nuclear⁹; the 2024 Democratic platform does not address nuclear power¹².

No commercial small modular reactor is operating in the U.S. yet, and analysts say costs and build times will not be known until the first ones are finished⁴.

Key terms

Small modular reactor (SMR)

A nuclear reactor much smaller than a traditional plant, designed to be built in factory-made sections; none are yet in commercial operation in the U.S.⁴.

Nuclear Regulatory Commission (NRC)

The independent federal agency that licenses and inspects nuclear reactors; 2025 executive orders directed it to speed up reviews¹².

Construction permit

NRC approval needed before a new reactor can be built; the agency must finish safety and environmental reviews first⁶.

Spent nuclear fuel

Used, highly radioactive reactor fuel that must be stored long-term; where to store it has been fought over in Texas⁷.

TANEO

The Texas Advanced Nuclear Energy Office, created in 2025 inside the Governor's office to support new nuclear projects⁵.

In Texas

Texas has two nuclear plants, Comanche Peak and South Texas Project, which produce about 10% of the state's electricity⁴. In 2025, lawmakers passed House Bill 14, creating the Texas Advanced Nuclear Energy Office and a $350 million Texas Advanced Nuclear Development Fund that reimburses companies for project development, supply chain, and construction costs⁵. The office also serves as a single point of contact for state permits⁵. Supporters point to forecasts that Texas power demand could nearly double by 2030, mainly because of data centers⁴.

In September 2024, the NRC issued a construction permit for a 1-megawatt research molten salt reactor at Abilene Christian University⁸. On May 18, 2026, the NRC found no significant environmental impact for Dow and X-energy's proposed advanced reactor project at Seadrift on the Gulf Coast, though its safety review must still be completed before any permit⁶.

A 2021 Texas law bans storing or disposing of spent nuclear fuel and other high-level radioactive waste in the state except at current or former reactor sites¹⁰. Texas also challenged a federal license for a private spent fuel storage site in West Texas. On June 18, 2025, the U.S. Supreme Court ruled 6 to 3 that Texas could not challenge the license in court because it had not been a party to the licensing proceeding⁷¹¹.

How people see it

The strongest case for each view, in terms its supporters would recognize. We don't pick a side.

Questions to ask a candidate

• Should Texas spend public money to attract new nuclear reactors?
• Should federal nuclear safety reviews be sped up, and what safeguards must stay?
• Where should spent nuclear fuel be stored, and should Texas accept any of it?
• Who should pay if a new reactor project runs over budget?