The Obama administration, in its attempt to promote the use of clean energy, proposes an expansion of the federal government's loan guarantee program for the construction of nuclear plants. The proposal is part of the president's annual budget, and comes on the heels of an endorsement of nuclear energy in Obama's State of the Union address.

To promote the transition of the American economy toward clean sources of energy. More specifically, to encourage the development of plants that yield nuclear energy.

The proposal would increase the federal government's commitment to backing nuclear plant construction projects. The current budget is $18.5 Billion. This plan would increase the budget by $36 Billion.

 

Experts report that loan guarantees are crucial incentives to increasing plant construction, for an individual nuclear plant costs approximately $9 Billion to develop.

The proposal would create $36 Billion in federal government liabilities for the coming fiscal year. However, the loan guarantees are not an investment, but a form of security or insurance for investors in nuclear power.