Will Trump funding freeze block bailouts for closed reactor restarts?

[“Burning Money” image by Gene Case/Avenging Angels. It was featured on the cover of The Nation magazine in 2003, accompanying an article by Christian Parenti about the George W. Bush/Dick Cheney administration’s ill-fated, attempted nuclear power relapse at that time.]

An article published by E&E News, “Trump Spending Freeze on Rural Electric Co-ops Could Raise Energy Costs,” begs the question, will U.S. Department of Agriculture (USDA) grants to rural electric co-ops, to reimburse them for Power Purchase Agreement electricity purchases connected to restarting closed atomic reactors.

For example, the Wolverine (in Michigan) and Hoosier (in Indiana and Illinois) rural electric co-ops applied to the USDA for $1.3 billion in grants, to reimburse the co-ops for electricity purchased from Holtec, generated at the Palisades atomic reactor, supposedly closed for good by previous owner Entergy on May 20, 2022, but now proposed to be restarted.

The grants would only cover 25% of the co-ops’ purchases of overpriced electricity from Palisades — up to 57%, or more, above market rates.

However, the USDA grants may only cover a 10 year time period. The co-ops could apply again in the future, for yet more federal taxpayer-backed reimbursement.

The USDA grants come out of the Inflation Reduction Act of 2022, which Trump has said he would repeal, and claw back. But will he do a nuclear power carve out? At Palisades, that is the $1.3 billion question.