Tennessee Governor Seeks $25 Million Boost for Nuclear Fund, Fueling Oak Ridge's Tech Hub Ambitions
Tennessee is poised to significantly expand its investment in next-generation nuclear technology. Governor Bill Lee, in his final State of the State address, announced he will ask the legislature to add $25 million to the state's Nuclear Projects Fund. This would bring the fund's total to $95 million, reinforcing a strategic push to make Tennessee a national leader in the sector.
Established in 2023, the fund has already disbursed nearly $49 million across 14 awards. A striking pattern has emerged: all but one grant has been allocated to entities in East Tennessee, the historic heart of U.S. nuclear science since the Manhattan Project. "From our history to our future, Tennessee's nuclear energy innovation is unmatched," Lee stated, invoking the region's enduring legacy.
The Oak Ridge corridor, home to the Y-12 National Security Complex and the Oak Ridge National Laboratory, has been the primary beneficiary. Companies are leveraging local assets like the lab, the Tennessee Valley Authority, and the University of Tennessee's nuclear engineering program. This state-level momentum aligns with broader federal goals to dramatically expand nuclear capacity by mid-century.
Funding pace has accelerated, with six awards in 2024, six in 2025, and two already in 2026 totaling $9.7 million. The grants support projects promising billions in private investment and over 2,000 jobs. Notable recipients include Orano, planning a historic private investment for an Oak Ridge enrichment site, and Centrus Energy, which recently secured $8.2 million for expansion. BWX Technologies focuses on defense uranium enrichment, while Oklo is slated for a record $13 million award for fuel recycling and reactor development.
Voices from the Community:
"This isn't just funding; it's a down payment on East Tennessee's economic future," says Dr. Anya Sharma, a materials scientist at UT Knoxville. "We're seeing a critical mass of talent and capital that can redefine energy independence."
"As a third-generation Oak Ridge resident, it's inspiring to see the state double down on our heritage," notes Michael Reed, a local business owner. "These jobs are high-tech and homegrown."
"Where's the geographic diversity?" challenges Lisa Chen, a policy analyst with the Sustainable Futures Group. "This fund is becoming a slush fund for the Oak Ridge elite. What about the rest of Tennessee facing energy poverty? It's a classic case of subsidizing the powerful while calling it 'innovation.'"
"The strategic focus makes sense," counters former TVA director James Powell. "You build clusters where the infrastructure and expertise already exist. This concentrated investment will have ripple effects statewide."
While most major players have received support, some, like Kairos Power, continue to pursue partnerships and federal grants outside the state fund. The governor's new request signals Tennessee's intent to remain at the forefront of the nuclear renaissance.