Trump White House Approves $1 Billion Loan To Restart Three Mile Island Nuclear Plant

The Trump administration has approved a credit facility worth $1 billion for Constellation Energy Corp. (NASDAQ:CEG), according to the Wall Street Journal. The funds are designated to help reopen the Crane Clean Energy Center, the site famously known as Three Mile Island.

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AI Demand Meets Federal Policy

Constellation’s initiative to reopen the nuclear power plant is underpinned by a 20-year contract to sell the power exclusively to Microsoft Corp. (NASDAQ:MSFT), which requires consistent, round-the-clock electricity to run its artificial intelligence operations.

Economic and Regulatory Goals

For the current White House, this project represents more than just tech support; it is a lever for economic stability. Energy Secretary Chris Wright argued that expanding supply is the key to controlling inflation for consumers.

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"We want to bring as much addition of reliable electricity onto the grid to stop these price rises," Wright stated, noting that such efforts assist plans to "reshore manufacturing in our country."

Constellation executives praised the regulatory environment, noting that the administration’s approach has made it feasible to "vastly expedite this restart without compromising quality or safety. It's a great example of how America first energy policies create jobs, growth and opportunities and make the grid more reliable."

Reviving a Dormant Giant

The nuclear site includes a reactor deactivated in 2019, not because of safety issues, but because it couldn’t compete financially with cheap natural gas at the time. This specific unit was unaffected by the partial meltdown that occurred at an adjacent reactor in 1979.

Constellation intends to spend roughly $1.6 billion to bring the site back online by 2027. Once operational, it is expected to contribute approximately 800 megawatts of carbon-free capacity.

A Broader Nuclear Strategy

This restart is part of President Donald Trump‘s sweeping objective to quadruple American nuclear output by the middle of the century. The roadmap involves rebooting shuttered plants and constructing ten new large-scale reactors to boost capacity from 100 gigawatts to 400 gigawatts.

This marks a sharp pivot from recent decades, where the U.S. grid added only three major reactors since the 1990s. Wright indicated that the Nuclear Regulatory Commission is shifting its focus toward reducing bureaucratic hurdles.

"With the new generation of reactors that's even easier," he noted.

CEG Price Action: According to Benzinga Pro, Constellation Energy shares were up 2.33% at $347.25 in Tuesday’s extended trading.

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Photo: Cooling towers of nuclear power plant thermal power station via Shutterstock