The state of Texas is taking a major step toward expanding its nuclear energy footprint, opening applications for $350 million in funding aimed at accelerating advanced reactor development and strengthening supply chains.
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The funding, administered through the Texas Advanced Nuclear Development Fund, is part of a broader strategy to position nuclear power as a cornerstone of the state’s long-term energy and workforce plans. Gov. Greg Abbott described the initiative as the largest state-led investment in nuclear energy in the United States.
The program will distribute funds through two primary channels: the Advanced Nuclear Construction Reimbursement Program and the Project Development and Supply Chain Reimbursement Program. Eligible applicants include businesses, public entities, universities and nonprofit organizations, with initial notices of intent due April 23 and full applications due May 14.
To qualify for construction reimbursement, applicants must already have—or be close to securing—a construction permit or combined license application docketed with the U.S. Nuclear Regulatory Commission by Dec. 1.
Currently, only two projects in Texas meet that threshold. One is a partnership between Dow Inc. and X-energy to build four Xe-100 high-temperature gas-cooled reactors at Dow’s Seadrift operations site in Calhoun County. The project submitted its construction permit application in March 2025.
The second is Project Matador, a collaboration between Fermi America and Texas Tech University. The project proposes four AP1000 reactors in Carson County near the Pantex plant in Amarillo. Federal regulators accepted portions of its combined license application in September 2025, marking the first such filing for a large-scale light-water reactor in more than a decade.
Construction on Project Matador is targeted to begin in 2027, with the first unit expected to come online by 2033. The development team has already secured engineering and equipment agreements with international partners to support reactor construction and key components.
Beyond these initial projects, the fund is designed to support a broader ecosystem of nuclear development across the state. Additional projects in earlier regulatory stages—including efforts led by Texas A&M University and private developers—could qualify under provisions for projects expected to meet permitting requirements.
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The initiative also emphasizes supply chain development, a critical component in scaling nuclear construction. By supporting manufacturing capacity, workforce training and project planning, Texas aims to create a more self-sufficient and competitive nuclear industry.
The fund was established under H.B. 14 following recommendations from the Public Utility Commission of Texas’ Advanced Nuclear Reactor Working Group. State leaders view nuclear energy as a reliable, low-carbon power source capable of supporting growing electricity demand while creating high-wage jobs.
“Nuclear energy provides an efficient and reliable energy solution while creating high-wage advanced manufacturing jobs,” Abbott said in a statement.
As Texas continues to experience rapid population and industrial growth, the state’s investment signals a renewed commitment to nuclear energy as part of a diversified and resilient power strategy.
Originally reported by Vince Kong in ENR.
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