US Floats Incentives-for-Waste Strategy to Unlock Nuclear Power Expansion

The Trump administration is preparing to sound out US states on a controversial new approach to nuclear waste management, offering incentives to host radioactive waste facilities in exchange for support for new nuclear power projects, according to a source familiar with the matter. The move signals a potential policy shift as the administration seeks to dramatically expand nuclear energy to meet surging electricity demand from data centers, artificial intelligence and cryptocurrencies.

President Donald Trump has set an ambitious target of quadrupling US nuclear capacity to 400 gigawatts by 2050, a goal that would require overcoming one of the industry’s most persistent challenges: the long-term disposal of radioactive waste. Local opposition to waste storage has stalled nuclear development for decades, with spent fuel currently stored at reactor sites in pools and reinforced casks.

Under the emerging strategy, states would be invited to express interest in hosting underground waste repositories as part of broader, non-binding deals that could also include incentives for new reactors, nuclear waste reprocessing and uranium enrichment. The Department of Energy emphasized that no decisions have been made, with a spokesperson calling reports of a finalized plan “false.”

If pursued, the approach would mark a departure from the long-standing plan to store nuclear waste at Nevada’s Yucca Mountain, a project launched in 1987 but halted under President Barack Obama due to strong state opposition after at least $15 billion was spent. Since then, the government has promoted a “consent-based siting” model, though no permanent repository has been established.

The proposal also revives debate over nuclear waste reprocessing, a practice lifted from moratorium under President Ronald Reagan but never commercially developed in the US due to high costs and non-proliferation concerns.

Supporters argue the strategy could unlock clean, reliable nuclear power at scale. Critics warn it risks reigniting political and public resistance around radioactive waste, a challenge that has long shadowed America’s nuclear ambitions.

Nuclear waste management is the persistent bottleneck to US nuclear expansion, and how it gets resolved shapes long-horizon firm-power availability for anyone underwriting grid-integration decisions today. Our energy-transition and responsible-investment teams help clients evaluate what nuclear-adjacent investment means for long-term energy strategy.