Army to Test Nuclear Micro-Reactors on Bases by 2030: Military Gets 50-Year Power Contract Authority

The Advanced Reactor Modernization for Operational Resilience Act of 2025, or the ARMOR Act, is all about making sure the military never loses power, even during a crisis. Think of it as the ultimate backup generator—except it’s powered by advanced nuclear technology. This legislation sets up a major pilot program for the Army to deploy small, advanced nuclear reactors on military installations and gives the entire Department of Defense (DoD) new, long-term contracting power for nuclear energy.

The Army's Nuclear Power Play

Section 2 of the ARMOR Act mandates that the Secretary of the Army, working with the Defense Innovation Unit, start a pilot program to use fixed, advanced nuclear micro-reactors or Small Modular Reactors (SMRs) to power critical Army infrastructure. The goal is to have these resilient energy sources up and running at selected U.S. bases no later than December 31, 2030. This isn't just about keeping the lights on; it’s about providing reliable, uninterruptible power for essential military functions. For context, these reactors can generate up to 300 megawatts—enough to power a small city.

Crucially, the bill also allows the Army to explore connecting these reactors to the commercial power grid. If the military produces excess energy, they can sell it back to the grid, which is a potential revenue stream and a way to support local energy needs. This provision means that the military is not just consuming energy, but potentially becoming a small-scale energy producer. The bill also directs the Nuclear Regulatory Commission (NRC) to prioritize the licensing process for any reactors used in this pilot, effectively putting these projects on the fast track.

50-Year Contracts and Strategic Capital

If you’re a power company, Section 3 is the big news. It grants the Secretary of any military department—Army, Navy, or Air Force—the authority to enter into contracts for advanced nuclear energy that last up to 50 years. Most government contracts are much shorter, so this massive extension signals a serious, long-term commitment to nuclear power as a foundational energy source for the DoD. This stability is exactly what developers of complex, capital-intensive projects like advanced reactors need to secure financing.

Furthermore, the bill allows the military to use the value of any land it leases out for the reactor facility as part of the contract consideration. This means the military can essentially trade valuable land access for better power rates or terms. The money for these decades-long contracts can come from existing funding streams, giving the military flexibility but also potentially reducing the direct budgetary oversight that comes with needing a brand-new, specific appropriation.

Finally, Section 4 expands the investment focus of the Office of Strategic Capital (OSC). This office, which aims to support vital national security technologies, is now explicitly required to include Nuclear energy and Nuclear technologies in its list of "covered technologies." This change means more federal investment and financial backing will be directed toward the advanced nuclear sector, increasing the capital available to develop these technologies.

What This Means for the Real World

For the average taxpayer, this bill represents a significant investment in national security infrastructure and advanced technology. The primary benefit is enhanced energy resilience for military bases, which is critical in an era of increasing cyber threats and extreme weather events that can disrupt the commercial grid. The cost is the commitment to developing and fielding this technology, which can be expensive. Since the military can use existing funds for 50-year contracts, taxpayers need to know that these long-term commitments are being made using money already allocated for energy expenses, rather than requiring new, sudden taxes.

For the nuclear industry, this is a massive vote of confidence and a guaranteed customer base for decades. For communities near military bases, the pilot program introduces the possibility of a new nuclear facility. While the bill aims for safety by prioritizing NRC licensing, the decision on whether the reactor will be licensed as a standard commercial facility is left to the Secretary’s discretion, which could lead to variations in regulatory oversight across different pilot sites. The promise of selling excess power back to the grid, however, offers a potential local benefit by adding a reliable, low-carbon power source to the regional energy mix.