Economic Recovery for Nuclear-Affected Communities Act

Bill Number

H.R. 7796

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Energy

Status

Introduced

Latest Action

2026-03-05: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.

Last Updated

2026-06-03T08:05:56Z

AI-Generated Summary

Purpose of the Legislation

The Economic Recovery for Nuclear-Affected Communities Act aims to provide economic support to local communities burdened by "stranded nuclear waste"—spent nuclear fuel left at decommissioned or decommissioning power plant sites. It addresses the social and economic challenges these communities face, such as job losses, reduced tax revenues, and barriers to redevelopment, by offering financial incentives, grants, and innovation programs to promote recovery and growth.

Key Provisions

• Findings Section: Recognizes that numerous U.S. communities (in states like California, Connecticut, Florida, and others) serve as unintended storage sites for nuclear waste due to delays in permanent disposal. It highlights how plant decommissioning leads to economic hardship and how the 1982 Nuclear Waste Policy Act (NWPA) intended but failed to fully mitigate these impacts through payments of $15 per kilogram of spent fuel.

• Definitions:
• Administrator: Refers to the head of the U.S. Economic Development Administration (EDA), a federal agency focused on economic growth.
• Eligible civilian nuclear power plant: A commercial nuclear plant that is shut down or shutting down.
• Nuclear affected community: Local governments (e.g., counties, cities, school districts) with stranded nuclear waste or an eligible plant within their boundaries.
• Stranded nuclear waste: Spent nuclear fuel stored on-site in dry casks or pools, as defined under the NWPA.

• Tax Incentives (Section 4): Modifies the existing first-time homebuyer tax credit (under Internal Revenue Code Section 36) to apply exclusively to home purchases in nuclear affected communities. The credit encourages new residents by offering financial relief for buying a primary home, effective for purchases after enactment.

• Innovative Solutions Prize Competition (Section 5):
• The EDA must launch a competition within 180 days of enactment to award $500,000 prizes for community proposals on redeveloping former nuclear sites (e.g., alternatives to waste storage or power generation).
• An advisory board of at least 9 experts (from fields like nuclear waste, workforce, technology, and economic development; including national labs, nonprofits, and universities) will guide the program.
• The winning proposal funds a pilot project (up to $500,000), followed by a congressional report within 60 days.

• Economic Impact Grants (Section 6): Establishes a noncompetitive grant program administered by the EDA, starting within 120 days of enactment, to offset waste-related harms and decommissioning losses.
• Grants Based on Stranded Nuclear Waste (Subsection b): Awards $15 per kilogram of stored spent fuel (mirroring NWPA rates), limited to one grant per community per fiscal year.
• Grants Based on Lost Tax Revenue (Subsection c): For communities with at least a 20% drop in overall and nuclear-related tax revenues (compared to the prior 5-year average, for years 2015–2025). Provides up to $10 million annually over 8 years, tapering from 80% to 10% of the nuclear tax loss. Includes payments in lieu of taxes.
• Limitation: Communities cannot receive both types of grants in the same year.

• Funding Authorization (Section 7): Allocates $110 million annually for fiscal years 2026–2031 and $120 million for 2032–2036 to implement the Act. Funds cannot offset other federal programs, ensuring dedicated support.

Significant Changes to Existing Law

• Amendments to Internal Revenue Code Section 36: Narrows the first-time homebuyer credit (originally a broad incentive expiring in 2010 but occasionally revived) to target only nuclear affected communities, removing prior geographic and time limits while eliminating outdated subsections. This revives and repurposes the credit specifically for these areas.
• Builds on Nuclear Waste Policy Act of 1982: Reinforces the NWPA's impact assistance framework by mandating similar per-kilogram payments but expands eligibility to more communities and adds new grant options for tax losses, addressing gaps in federal support for decommissioning sites.
• No changes to nuclear waste disposal policies; focuses solely on economic relief.

Potential Impacts

• On Government Agencies: The EDA gains new responsibilities for grant administration, prize competitions, and pilot projects, requiring additional staffing and coordination with the IRS (for tax credits) and congressional committees (Transportation and Infrastructure, Financial Services, Ways and Means). Annual appropriations could strain federal budgets but are protected from offsets.
• On Citizens and Communities: Provides direct financial aid to stimulate homebuying, economic redevelopment, and tax revenue recovery in affected areas, potentially attracting new residents and businesses. Benefits residents through tax credits (up to $8,000 historically, though not specified here) and grants that could fund local services like schools.
• On International Relations: Minimal direct impact, as the bill addresses domestic nuclear waste storage without altering U.S. commitments under international nuclear agreements (e.g., non-proliferation treaties).

Main Stakeholders Affected

• Nuclear Affected Communities: Primary beneficiaries, including local governments in at least 15 states hosting stranded waste or decommissioning plants; they receive grants to mitigate economic decline.
• Residents and Homebuyers: Gain access to targeted tax credits, encouraging population growth and property values in these areas.
• Nuclear Industry and Workers: Indirectly supported through site redevelopment incentives, potentially easing transitions for former plant employees.
• Federal Taxpayers: Fund the program via appropriations and forgo revenue from expanded tax credits.
• Nonprofits, Universities, and Experts: Eligible for advisory board roles and prize competitions to propose solutions.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens federal obligations under the NWPA by operationalizing unpaid impact assistance, potentially reducing litigation risks from affected communities seeking compensation. The noncompetitive grants and tax amendments are straightforward but require clear EDA guidelines to avoid disputes over eligibility (e.g., waste quantification).
• Constitutional: Aligns with Congress's spending power (Article I, Section 8) to promote general welfare through targeted economic aid; no apparent federalism issues, as it supports local governments without preempting state authority over nuclear sites.
• Political: Represents bipartisan potential in energy policy by addressing nuclear legacy costs without reopening debates on waste repositories (e.g., Yucca Mountain). Could set precedent for federal bailouts of industry-impacted locales, influencing future environmental cleanup bills, but fiscal conservatives may critique the $110–120 million annual cost amid competing priorities.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Lawler, Michael [R-NY-17]

Recent Actions

• 2026-03-05: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
• 2026-03-04: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-04: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-04: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-04: Introduced in House
• 2026-03-04: Introduced in House

Bill Versions

• Economic Recovery for Nuclear-Affected Communities Act — issued 2026-03-04 — PDF (12 pages)