Will the US government regain its leadership by restarting investments in fusion commercialization?
Roughly six weeks ago, The Fusion Report ran an article on the funding that the private sector (primarily in the US) had put into fusion energy commercialization. We reported in that article that the total funds received worldwide by commercial fusion concerns being somewhere around $10.2 billion. In contrast, the U.S. government puts (far) less than $1 billion per year into funding fusion energy research and commercialization, especially when funding for nuclear weapons safeguarding is taken out. At the same time (and at least partially motivated by energy prices due to the Iran conflict), European and East Asian governments are putting large amounts of money into fusion commercialization, not to mention China’s fusion investments.
Even in the US, gas prices have jumped by 35% (topping an average of $4 a gallon earlier last week), a relatively large increase in today’s terms. Further, concerns have mounted among various industry analysts that if the streets of Hormuz remain closed for an extended period (fueled in part by Donald Trump’s thoughts about ending the war on Iran without reopening the Straits), oil prices could increase to $200 per barrel. So what is the US Government doing to maintain our lead in fusion energy development? We will look at the legislation currently on track to help us continue to maintain our lead in fusion energy commercialization.
Governments (Outside the US) Invest in Fusion Commercialization
If there’s any doubt that the US-Iran conflict has shaken confidence in the long-term stability of energy markets (as President Trump states that he is considering leaving NATO), one simply needs to look at recent government investments that have been announced around the world in fusion energy commercialization. In mid-March, the UK government announced a new fusion program with over £2.5 billion in commercial fusion energy development in the UK. The program centers around the development of a prototype £1.3 billion fusion power plant called the Spherical Tokamak for Energy Production (STEP) at West Burton, Nottinghamshire, UK, targeted to start construction in 2030. Supporting this plan is the funding of new R&D infrastructure (£740 million) into both magnetic confinement fusion (MCF) and inertial confinement fusion (ICF) development. The plan also includes £200 million to develop the Lithium Breeding Tritium Innovation (LIBRTI) facility for fusion fuel technology, £125 million for a fusion-dedicated AI computer facility in Culham, £110 million for UK companies developing fusion-related technologies, and £50 million for training workers to be a part of the fusion industry.
Similar investments are being made by the German government and the European Union (EU) as well. Germany has recently committed over €2 billion euros between now and 2029 to accelerate commercial nuclear fusion, aiming to build the world’s first fusion power plant. Like the UK plan, the German plan includes funding for new laser fusion infrastructure (€755 million). The program is part of a broader €18 billion agenda intended to strengthen technical sovereignty for Germany. The purpose of the larger measure is to restart the German economy, a need underscored by Chancellor Friedrich Merz who said, “We must not allow the US and China to determine the technological future on their own”. And while EU investments are small (€222 million for Euratom to move fusion “from lab to grid:”) compared to Germany, they still represent a fundamental change in Europe’s approach to fusion from being a research effort to commercial development and deployment. More importantly, the European Commission has imposed a €9.8 billion budget for the next Euratom program (from 2028 to 2032).
For its own part, the Japanese government and Japanese firms have struck deals with major US energy companies and the U.S. government to invest in a variety of energy sectors, including fusion commercialization. And let’s not forget China; the country has recently ramped up government investments in fusion research to the tune of an estimated $1.0-$1.5 billion per year. Similarly, private investments in Chinese fusion development have skyrocketed from zero to $1.3 billion in 2024. The Chinese supply chain is also rapidly growing to support fusion industry dominance.
US DoE’s Fusion Science & Technology Roadmap
In the U.S. government, the U.S. Department of Energy (DoE) has the mandate to lead the way in planning and executing the fusion commercialization roadmap. Specifically, The Fusion Science & Technology (S&T) Roadmap is a comprehensive national strategy to accelerate the development and commercialization of fusion energy by the mid-2030s. This 52-page document outlines a strategy known as “Build-Innovate-Grow” Bridge gaps in the US fusion materials and technology (FM&T) long-range plan. While the fusion industry has called for up to $10 billion in federal support to accelerate commercialization of US fusion, and in particular to compete with the Chinese, funding programmed by the DOE to date amounts to $134 million to advance US fusion leadership through public-private partnerships. Note that that is less than Trump Media agreed to pay TAE when it merged with them in December 2025, which included $200 million in cash at signing and $100 million more upon initial filing of their Special-Purpose Acquisition Company (SPAC).
If DoE is not planning on funding fusion to the levels that fusion advocates are looking for, what else may it be doing that could help commercialize fusion energy? The specific aim of the “Build–Innovate–Grow” approach is to build critical infrastructure and test facilities, using advanced tools such as high-performance computing and artificial intelligence to improve reactor designs, and growing a domestic fusion ecosystem through public-private partnerships, supply-chain development, and workforce training. The roadmap identifies key technical gaps—such as structural materials, plasma-facing components, fuel cycles, and overall plant engineering—that must be solved to make a Fusion Pilot Plant and, eventually, commercial reactors viable.
A Dedicated DoE Office of Fusion: Does It Signal a New Direction?
One possible change that is positive is DOE’s stand-up of a dedicated Office of Fusion. As a part of this, DOE is planning to restructure its fusion program and expand direct collaboration with private fusion firms, universities, and national laboratories so that public research facilities support the rapid scaling efforts already underway in industry.
Through the Office of Fusion, the government envisions private companies designing and de-risking early demonstration plants in the next few years while federal programs build complementary test stands and specialized facilities, including new sites to evaluate materials and components under fusion-like conditions.
What is Congress Thinking?
Since Congress has the “power of the purse”, where are their plans for funding fusion energy development and commercialization? In December 2025, U.S. Senators Alex Padilla (D-CA) and John Cornyn (R-TX) introduced bipartisan legislation to formally establish the Office of Fusion at the DoE. House Fusion Energy Caucus co-chairs Representatives Don Beyer (D-VA), Jay Obernolte (R-CA), and Lori Trahan (D-MA) also introduced companion legislation in the House of Representatives. Complimentary bills as part of the FY-2025 House of Representatives Appropriations Bill propose funding for DoE fusion energy sciences at a level of $790 million, not quite what the Chinese Government is spending, but roughly the same amount as the US Government spent the year before.
Conclusion: Real Innovation, Or An Empty Promise?
It remains to be seen whether DoE’s new moves represent a sea change in planning, funding, and execution for US fusion energy commercialization efforts, especially in light of the worldwide efforts towards the commercialization of fusion energy, as well as the worldwide energy picture in light of the US-Iran conflict. In a letter to the DoE, the fusion industry has proposed a range of legislation, including using Clean Energy Production Investment tax credits to support pilot plant construction. As noted in the letter, other nations are outpacing the US in funding fusion R&D and deployment, with the EU, UK, Germany, and South Korea investing $9 billion between them. This is not a race we can afford to lose.
