U.S. Issues Guidance for American Space Nuclear Power Initiative

Key Takeaways: A recently issued U.S. National Initiative encourages collaboration between the federal government and the private sector to accelerate the development and deployment of space-based nuclear power systems. Private organizations working with the government under this Initiative should remain aware of patent ownership considerations associated with federally funded projects.

On April 14, 2026, the White House Office of Science and Technology Policy (OSTP) issued National Security and Technology Memorandum-3 establishing the National Initiative for American Space Nuclear Power. The Memorandum implements President Trump’s Executive Order 14369, “Ensuring American Space Superiority,” and outlines an ambitious initiative to accelerate the development, demonstration, and deployment of space-based nuclear power systems.

The Initiative involves cooperation across multiple federal agencies, including the National Aeronautics and Space Administration (NASA), the Department of War (DOW), the Department of Energy (DOE), and the Office of Science and Technology Policy (OSTP). Each agency is tasked with distinct responsibilities:

• NASA will lead development of mid-power reactors for lunar surface power and nuclear electric propulsion (NEP), targeting deployment by 2030. The agency will run competitive vendor programs, prioritize scalable and integrated reactor designs, and focus on technologies adaptable to future high-power missions.
• DOW will pursue deployment of a mission-enabling mid-power in-space reactor by 2031, initially supporting NASA’s efforts and later conducting its own vendor competitions.
• DOE will provide technical expertise, fuel resources, infrastructure assessment, and safety analysis. It will also evaluate the readiness of the domestic industrial base to produce multiple reactors within a five-year timeframe.

• OSTP will coordinate across agencies and develop a roadmap that identifies obstacles to achieving the objectives of the Initiative.

Notably, the Initiative encourages expanded utilization of the private sector to “enable and incentivize innovation, rapid progress, and cost-effectiveness for taxpayers.” The Initiative directs NASA, DOW, and DOE to:

• Conduct parallel design competitions for low- to mid-power space reactors.
• Issue firm fixed-price contracts.
• Allow vendors to propose their own interim milestones and associated payments.
• Support consultation of National laboratory experts with participating private sector and government participants on reactor design, development, and testing.

Private organizations seeking to collaborate with the federal government under this Initiative should remain aware of patent ownership considerations associated with federally-funded projects. One provision within the Memorandum invokes the Bayh-Dole Act and expressly directs DOW and NASA to ensure that “agreements provide for appropriate government use and march-in rights, for example by incorporating standard patent rights clauses of 37 CFR 401.14”.

As implemented by 37 CFR 401, the Bayh-Dole Act enables federal contractors to retain ownership of inventions developed with federal funding, subject to the “standard patent rights clauses” included in federal funding agreements. As one condition, the government retains a nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention. Additionally, as referenced by the Memorandum, the government maintains “march-in rights,” allowing it to require licensing to third parties under certain circumstances, such as failure to achieve practical application. Furthermore, the “standard patent rights clauses” define a multitude of administrative compliance requirements that must be followed by contractors to obtain and maintain title to inventions. For example, the clauses set strict deadlines for disclosing new inventions, electing title, and filing patents, among other requirements.

In conclusion, this guidance and the new Initiative signal a major federal push to advance space nuclear systems. Companies using these programs should coordinate with IP counsel to address IP issues with newly-developed inventions and compliance with the Bayh-Dole Act.