Exelon Corporation ($EXC) shares rose 3.5% after Trump administration officials announced a $1bn federal loan to restart the Three Mile Island nuclear plant. The Trump officials announce $1bn loan move surprised many analysts given the site’s 2019 closure, and it has major implications for both energy markets and U.S. nuclear policy.
Trump Authorizes $1bn Loan to Revive Three Mile Island Plant
On November 23, 2025, officials from the Trump administration declared that the Department of Energy (DOE) will grant a $1 billion federal loan guarantee to Exelon Corporation ($EXC) to facilitate the restart of the Three Mile Island nuclear power facility in Pennsylvania. Citing Bloomberg reporting, the move comes amid heightened concerns about U.S. energy security and carbon reduction goals, with the DOE targeting a Q3 2027 operational date. The Three Mile Island plant, famous for its 1979 partial meltdown, was permanently closed in September 2019 due to low wholesale power prices and lagging federal support (Reuters).
This new federal loan package is projected to revive 800 high-paying union jobs and add approximately 850 megawatts of carbon-free electricity to the PJM Interconnection grid, per Exelon’s SEC filings. The announcement follows months of industry lobbying, and according to a recent Department of Energy report, nuclear power currently supplies about 19% of U.S. electricity—its lowest position in four decades as aging plants retire. The DOE confirmed the loan as part of its Civil Nuclear Credit Program, which was expanded earlier this year under guidance from the Nuclear Regulatory Commission (NRC) (Bloomberg).
U.S. Nuclear and Utility Stocks Surge on Federal Support News
The Trump officials announce $1bn loan to restart Three Mile Island sent ripples through U.S. utility stocks. Exelon ($EXC) rose 3.5% on above-average trading volumes (NYSE data), while the S&P Utility Sector Index gained 1.2% in the session following the news. Barron’s reports that domestic nuclear operators—NextEra Energy ($NEE) and Dominion Energy ($D)—recorded gains of 2.1% and 1.8% respectively.
The announcement has revived optimism for the broader nuclear sector, which has struggled with high capital costs and stagnant demand growth. According to the U.S. Energy Information Administration (EIA), nuclear plant capacity in the U.S. declined by 4.2 GW between 2013 and 2024, largely due to retirements of legacy reactors and a lack of new construction. Industry analysts now forecast a reversal, pointing to the Biden and Trump administrations’ bipartisan support for nuclear subsidies as a driver for new investments in advanced reactors.
On a macroeconomic level, the new loan guarantee aligns with federal efforts to stabilize grid reliability and reduce dependency on volatile natural gas and imported oil. Wholesale electricity prices in the PJM market have swung between $23 and $56 per MWh in 2025, highlighting demand for stable, low-carbon base load power (EIA).
Strategies for Investors Navigating Renewed Nuclear Catalysts
For investors, the Trump officials announce $1bn loan to restart Three Mile Island marks a pivotal catalyst for the utility and nuclear sectors. Exelon ($EXC) remains a core holding for many utility-focused funds, and renewed federal backing could bolster earnings forecasts for FY2027 and beyond. Income investors may also look to stable dividend-payers like Dominion Energy ($D) and Duke Energy ($DUK), as increased nuclear permitting could drive multiple expansion across regulated electric utilities (per sector analyst notes).
Growth-oriented investors might explore uranium mining equities such as Cameco ($CCJ) and Denison Mines ($DNN), which could benefit from heightened U.S. demand for nuclear fuel in coming years. Meanwhile, ESG-focused funds may reconsider nuclear allocations as the Biden and Trump policies increasingly classify nuclear as “green taxonomy” infrastructure (per MSCI 2025 Index Review).
For broader market context, readers can access in-depth stock market analysis and regular financial news updates to monitor ongoing sector dynamics.
Active traders should track regulatory developments from the Nuclear Regulatory Commission (NRC) and the DOE’s Civil Nuclear Credit Program. While this surprise loan has prompted a sector rally, some analysts caution about construction risk, regulatory delays, and cost inflation—factors that historically undermine U.S. nuclear economics.
Expert Analysis: U.S. Nuclear Policy at an Inflection Point
Market strategists and energy analysts highlight that the Trump officials announce $1bn loan comes at a time of heightened policy support across both political parties. According to S&P Global and Moody’s sector review, the U.S. nuclear fleet is approaching “critical mass” for revitalization, with more than 10 GW from mothballed reactors now flagged for possible reactivation. Bloomberg New Energy Finance reported in mid-2025 that state and federal-level incentives, especially production tax credits for zero-carbon generation, have reshaped project feasibility for legacy nuclear sites.
A Morgan Stanley note from October 2025 assesses the restart plan as credit-neutral for Exelon ($EXC) in the near term, but potentially earnings-accretive by 2028 if operational targets and regulatory approvals are met. At the same time, energy transition advocates call for a diversified resource mix: while the $1bn loan secures U.S. energy resilience, overreliance on any single technology remains a key risk. Notably, large-scale nuclear projects in Europe and Asia have suffered cost overruns of 30–60% over the past decade (per IEA). Bank of America Securities recommends investors watch for forthcoming NRC licensing updates and DOE project financing rules through mid-2026, as these events will define market sentiment around utility sector capital allocation.
Consulted analysts broadly agree that the outcome at Three Mile Island could set a template for other U.S. reactors seeking similar support under the expanded Civil Nuclear Credit Program, especially as federal loan guarantees lower the cost of capital and de-risk investment for utilities and their shareholders.
Three Mile Island, Federal Loans, and the Energy Sector’s 2025 Outlook
The Trump officials announce $1bn loan to restart Three Mile Island is not just a headline; it reflects a changing calculus for policymakers and energy investors alike. With U.S. grid reliability and decarbonization targets under stress, federal backing for legacy nuclear assets may spur sector rotation and new capital flows into utility equities. Investors should monitor regulatory and legislative progress, as well as macroeconomic factors such as capacity auction results and regional electricity pricing.
For those seeking sector exposure, Exelon ($EXC) and peers offer defensive characteristics amid energy volatility, but headline risks, project slippage, and evolving policy must be considered. Ultimately, this loan marks a pivotal moment where government and capital markets are aligned in delivering large-scale, low-carbon generation—potentially redefining U.S. energy investment strategy. Stay informed via ongoing stock market coverage and sector analytics to position portfolios ahead of future policy and infrastructure shifts.
Tags: Three Mile Island, Exelon, energy sector, nuclear power, Trump administration
