Trump Administration Boosts Palisades Nuclear Plant Restart with New Loan Payment

October 21, 2025

The Trump administration is signaling continued support for the restart of the decommissioned Palisades nuclear power plant in western Michigan. The U.S. Department of Energy has approved another installment of a federal loan, a move that underscores a commitment to bolstering U.S. energy independence.

Key Takeaways

The U.S. Department of Energy released nearly $57 million as part of a $1.52 billion federal loan guarantee to Holtec.
This funding aims to restart the Palisades nuclear plant, which ceased operations in May 2022.
The restart is viewed as a significant step towards enhancing U.S. energy self-reliance and securing high-paying jobs.

Restarting Palisades Nuclear Plant

The U.S. Department of Energy announced the disbursement of a second loan installment to Holtec, the company attempting to restart the Palisades nuclear power plant. This action, amounting to nearly $57 million from a $1.52 billion federal loan guarantee, demonstrates a strong commitment to the project. Palisades, which operated for over 40 years, shut down in May 2022. The interest in its restart stems from the potential for nuclear power to provide high-output, carbon-free energy, crucial for meeting energy demands and potentially climate goals.

Energy Independence and Trump’s Stance

While the Trump administration previously withdrew the U.S. from the Paris Climate Accords, the focus on expanding nuclear power remains a priority. U.S. Energy Secretary Chris Wright stated that "unleashing American energy dominance will require leveraging all energy sources that are affordable, reliable and secure — including nuclear energy." This initiative is framed as a means to increase domestic energy production, bolster national security, and reduce costs for Americans.

If successfully restarted, the Palisades plant is expected to generate 800 megawatts of electricity, capable of powering approximately 800,000 homes. Holtec spokesman Nick Culp highlighted the project’s significance, calling it "another major step forward to bring Palisades back online later this year, returning 800 megawatts of safe and reliable baseload energy back to the grid while supporting hundreds of high-paying, highly skilled American jobs."

Path to Reopening and Future Plans

Recommissioning Palisades still requires approval from the U.S. Nuclear Regulatory Commission. However, Holtec officials are optimistic about restarting the plant within the current year. Restart activities are reportedly on schedule and within budget, involving inspections, testing, and upgrades to prepare the plant for long-term operation. This effort is supported by state officials, including Governor Gretchen Whitmer, who noted the project’s bipartisan nature and its potential to save jobs and provide clean power.

Looking ahead, Holtec has also announced plans to install the first U.S.-built small modular reactors (SMRs) on the Palisades property by 2030. These two proposed SMR-300 units would each generate about 300 megawatts of energy, further contributing to the site’s clean energy production.

Opposition and Concerns

Despite the progress and support, some nonprofit groups have voiced opposition to the nuclear plant’s restart. Organizations such as Beyond Nuclear and Don’t Waste Michigan have raised concerns about the "extreme risks to safety, security, health and the environment" associated with the aging reactor. They also question Holtec’s capability to operate a nuclear plant, given its historical focus on decommissioning.