Trump administration releases billions in loan for the Three Mile Island reactor

The US government is supporting the reactivation of Three Mile Island with a $1 billion loan. Constellation Energy plans to bring the TMI plant back online despite past controversies. This move aligns with the current nuclear power debate, as rising electricity consumption driven by digital technologies is forcing energy policymakers to make new decisions. Reactor safety is also once again in focus, especially given the significant pressure on the American electricity market. (cnn: 19.11.25)


Political Backing for a Risky Restart

In 2024, Constellation signed an agreement with Microsoft that makes resuming operations attractive. The tech giant is seeking large power capacities for its data centers, and Three Mile Island promises stable performance. The US leadership is aggressively promoting nuclear energy, as digitalization and artificial intelligence are driving up consumption significantly. Critics, however, point to unresolved issues surrounding long-term waste storage and technical safety standards, which still require sophisticated solutions.

Die Trump-Regierung ermöglicht durch einen Milliardenkredit den Neustart des abgeschalteten Kernkraftwerks Three-Mile-Island
The Trump administration is enabling the restart of the shut-down Three Mile Island nuclear power plant through a multi-billion dollar loan.
Image: Constellation EnergyCC BY-SA 4.0, via Wikimedia Commons

The economic situation is further intensifying the pressure. The energy market is highly volatile, and companies are seeking reliable sources of power. This is precisely where the project comes in, as the government regularly emphasizes that conventional large-scale power plants will retain a role despite discussions about sustainability. The political energy agenda is therefore clearly aimed at reviving large plants that provide baseload power and relieve the burden on industrial operations.

Quote on expectations for a stable energy supply

Greg Beard of the Department of Energy’s Loan Programs Office described the nature of the project with a sentence that aptly reflects the government’s approach: “This type of energy is important because it generates large, stable, and affordable baseload power.” He sees Three Mile Island as a building block for strengthening the PJM grid. Furthermore, the loan facilitates access to private capital and provides additional predictability for Constellation. In the debate surrounding nuclear power, this stance clearly demonstrates Washington’s priorities.

Beard also mentioned that his office has more than $250 billion in funding available. According to him, a large portion of the funding is being allocated to projects aimed at improving reactor safety. Energy Secretary Chris Wright confirms this approach and regularly emphasizes that the future of large electricity generation must be secured by stable power plants. The Three Mile Island project thus fits perfectly into this strategic direction.

Technical Work and Accelerated Planning

Constellation recently tightened its schedule because the grid operator PJM expedited the review process. The modernization is already underway. Hundreds of specialists are inspecting systems, renewing structural components, and preparing to replace several key elements. Cooling towers, transformers, and fresh fuel are on the agenda. The work demonstrates how challenging a restart remains, despite political support. At the same time, this development underscores the electricity market’s urgent need for reliable capacity.

The project is considered the first to directly meet all the conditions for loan approval. Constellation is guaranteeing the entire amount itself, protecting taxpayers should the TMI plant ultimately fail to deliver electricity. Beard emphasizes the company’s strong credit rating and points to its experience in managing large reactors. The political leadership sees this as a model for future investments in nuclear energy.


Permits and Policy Implications

Despite the progress, key permits are still pending. The U.S. Nuclear Regulatory Commission must approve technical details before the plant can generate energy. Additionally, the project requires water rights permits to ensure the protection of local ecosystems. The outcome of this project will also determine the future direction of energy policy, as many states are seeking alternatives to fluctuating renewable energy generation.

Three Mile Island’s restart thus not only impacts regional electricity prices. It also demonstrates how closely technological modernization, government subsidies, and the political energy agenda are intertwined. The plant’s return sends a powerful message, as the U.S. energy market is increasingly focused on long-term planning and high baseload power.

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