The funding will be used by the projects which involve development of advanced nuclear reactors, small modular reactors, uprates and upgrades at existing facilities, and front-end nuclear facilities.

Additionally, the Obama administration has agreed to supplement the additional costs for eligible projects which will be incurred during the Nuclear Regulatory Commission’s (NRC) licensing process, including those for design certification, construction permits, and combined construction and operating licenses (COL).

More than $900m of FY 2016 Budget in the country has been allotted for the Department of Energy (DOE) to support the US civilian nuclear energy sector in an effort to reduce carbon emissions.

The funds are intended to be invested for federal research, development, and demonstration efforts in nuclear energy technologies, ranging from power generation, safety, hybrid energy systems, and security technologies, among other.

The additional financing follows a series of closures announced by operators in nuclear power industry in the country.

Recently, Entergy announced its plan to close the 850MW James A. FitzPatrick nuclear power station in Scriba, New York, US in late-2016 or by early 2017.

Nuclear Matters, an industry collaboration aimed at promoting nuclear energy in the US, Leadership Council member Carol Browner said: "We need a whole menu of clean energy sources – including existing nuclear power, which provides 64% of our country’s carbon-free energy, and renewables like wind and solar – to ensure a cleaner energy future for our country.

"Unfortunately, the existing nuclear fleet is currently undervalued for its environmental benefits. This is contributing to the premature closure of some nuclear plants and jeopardizes our ability to meet our carbon-cutting goals.

"Today’s announcement should send a signal to the public, policymakers, and all energy stakeholders that we need a serious approach to preserving these plants to help us obtain the cleaner, greener energy mix that is so critical to America’s economic and energy security."