To date, Holtec has received $251.8 million in disbursed funds as it progresses through environmental, regulatory, and technical milestones.
The investment directly supports Executive Order 14302, “Reinvigorating the Nuclear Industrial Base,” a Trump-era directive that prioritizes nuclear energy as a national asset. DOE Secretary Chris Wright stated that the plant’s restart will “help to reinvigorate our nuclear industrial base and reestablish the United States as the world’s nuclear energy leader.”
Palisades’ revival aligns with federal goals to expand zero-carbon baseload power, strengthen domestic nuclear supply chains, and reverse the trend of early reactor retirements. The site’s return to service is also supported by Michigan’s $300 million state investment and a long-term power purchase agreement with Wolverine Power Cooperative.
The DOE’s funding follows the Nuclear Regulatory Commission’s final environmental assessment, issued in May 2025, which concluded there would be no significant impact from the restart. A final license amendment is expected by July 31, 2025, with Holtec targeting a Q4 2025 reactivation of the plant’s 800 MW pressurized water reactor.
In parallel, Holtec is planning to co-locate two small modular reactors (SMRs) on the Palisades site post-2030, underscoring the facility’s longer-term role in U.S. nuclear modernization.
While Palisades has become a symbol of federal support for nuclear revival, the restart has not been without opposition. A range of concerns have emerged from environmental groups, nuclear experts, and community stakeholders regarding both the plant’s physical integrity and the broader implications of setting a national precedent for restarting shuttered reactors.
Critics have questioned Holtec’s decision to reuse steam generator tubes installed in 2011. These components are considered well into their service life, prompting concerns over long-term reliability. The plant’s closure in 2022 followed a control rod drive failure, reinforcing worries about system degradation.
Though the NRC’s environmental review found no significant impact, technical and safety reviews remain incomplete. Some fear that a successful restart could establish a precedent that weakens long-term safeguards, particularly if legacy systems are permitted without full replacement.
Advocacy groups have cited thyroid cancer clusters and proximity to Lake Michigan as reasons for heightened scrutiny. Calls for independent health studies remain unanswered, adding to mistrust among residents and watchdog organizations.
Local emergency planning systems were decommissioned or scaled back after the 2022 shutdown. Stakeholders warn that updated evacuation protocols and training have not kept pace with reactivation timelines, creating potential vulnerabilities within the 10-mile emergency zone.
Originally slated for decommissioning, Holtec now faces criticism for repurposing the site's decommissioning trust fund and relying on federally backed loans. Observers have questioned whether the financial structure adequately protects taxpayer interests, especially if restart efforts face cost overruns or delays.
If successful, the Palisades restart could serve as a replicable model for other decommissioned reactors across the country. The combination of federal backing, state support, and private investment presents a blueprint for how legacy nuclear infrastructure can be revitalized to support climate and energy security goals.
As the energy sector weighs the balance of reliability, decarbonization, and resilience, Palisades is emerging as a litmus test for nuclear reinvestment in the 21st century.
