Kentucky Lawmakers Aim to Boost Small Nuclear Reactor Development

Senate bill would provide $75 million in grants to help cover permitting costs for advanced small modular reactors

Published on Feb. 13, 2026

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Kentucky lawmakers are pushing a new Senate bill that would set aside up to $75 million in grants to help developers cover the costs of federal nuclear site permitting for small, prefabricated nuclear reactors. The goal is to position Kentucky to compete with other states like Tennessee and Texas that have already invested heavily in next-generation nuclear technology. However, consumer and environmental groups have raised concerns about the potential risks to ratepayers.

Why it matters

Kentucky is a relatively late entrant into the nuclear power race, having only lifted a moratorium on nuclear plant construction in 2017. Lawmakers see small modular reactors as a way for the state to get a foothold in the emerging nuclear energy market and attract power-hungry data centers. But the high upfront costs and risks associated with nuclear projects have drawn pushback from consumer advocates.

The details

The Senate bill, SB 57, would steer up to $75 million in grants from the Kentucky Nuclear Energy Development Authority (KNEDA) to help utilities, developers and tech companies cover the costs of securing federal permits to build small modular reactors. Each project would be eligible for up to $25 million, with final approval required from the state legislature. Proponents argue the compact, factory-built designs of small modular reactors could get online faster than traditional nuclear plants and help fill gaps in the energy grid left by data centers. However, critics say the bill shifts too much financial risk onto ratepayers without adequate safeguards.

  • The Kentucky General Assembly lifted a moratorium on nuclear power plant construction in 2017.
  • The Kentucky Nuclear Energy Development Authority (KNEDA) was established in 2024 and given grant-making power.
  • SB 57 cleared the Senate Natural Resources and Energy Committee on February 11, 2026 and now heads to the full Senate for consideration.

The players

Sen. Danny Carroll

A Republican state senator from Paducah, whose district encompasses Kentucky's largest nuclear remediation and cleanup site. He has emerged as a champion for nuclear energy development in the state.

Sen. Robin Webb

A pro-coal Eastern Kentucky Republican who said she would have questioned 20 years ago the idea of voting yes for nuclear energy legislation.

Rodney Andrews

The director of the University of Kentucky's Center for Applied Energy Research and the chair of the KNEDA board.

Audrey Ernstberger

An associate attorney at the Kentucky Resources Council who opposes SB 57, arguing it shifts too much financial risk onto ratepayers.

Rep. Josh Bray

A Republican state representative who introduced separate legislation earlier this week to prevent utilities from connecting data centers to the public grid unless they cover their share of transmission and infrastructure costs.

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What they’re saying

“This is the next step, and arguably the most significant step, towards a nuclear economy and a nuclear ecosystem in the commonwealth. Kentucky is well-placed right now within the nation when it comes to nuclear energy.”

— Sen. Danny Carroll (Legislative Research Commission)

“If anybody would have told me 20 years ago that this underground coal miner would have been on a nuclear task force and voting yes for this, I would have had to seriously question that.”

— Sen. Robin Webb (Legislative Research Commission)

“This structure actually weakens a longstanding used and useful safeguard that's been a part of Kentucky's energy policy principles and has traditionally protected customers from financing projects that may never deliver service.”

— Audrey Ernstberger, Associate Attorney, Kentucky Resources Council (kentucky.com)

What’s next

The Senate bill, SB 57, now heads to the full state Senate for consideration.

The takeaway

Kentucky's push to get into the small nuclear reactor game highlights the state's efforts to diversify its energy mix and attract new industries like data centers, but the high costs and risks associated with nuclear power have raised concerns about the potential impact on ratepayers.