Milestone-Based Fusion Development Program

Milestone-Based Fusion Development Program — Between

Supports private fusion teams through milestone-based programs advancing through development gates.

⚠ This may reflect a past cycle — verify the current call on the funder's site.

The DOE Fusion Energy Sciences Milestone-Based Fusion Development Program is a five-year, $370 million authorized initiative that funds private fusion companies through milestone-gated performance phases rather than conventional grant reimbursement. Launched in September 2022, the program selected eight initial companies for negotiation by May 2023, with formal agreements finalized in June 2024 after extended IP negotiations. Those first-cohort awardees collectively received $46 million across their initial 18-month performance period, with payment tranches released only upon verified completion of quantitative milestones. A second cohort expansion was opened in June 2025 with $10 million for new milestone awardees and $15 million for capability enhancements to existing participants.

Eligibility is restricted to for-profit private fusion developers headquartered in the United States; national laboratories and universities may participate as team members but cannot lead. New entrants since 2024 receive standard M8 contract terms, meaning IP protections and other parameters are not individually negotiated as they were for the original 2023 cohort. The three performance phases span 18 months, 18 months, and 24 months in sequence, each gated on completion of agreed technical milestones. The FY2025 expansion cycle closed pre-applications on June 12, 2025, and full applications on June 27, 2025. The maximum known award is $19.5 million, based on Commonwealth Fusion's first-cohort figure, though individual awards vary by milestone scope.

As of the current catalog snapshot, the FY2025 expansion cycle is closed and no confirmed FY2026 NOFO has been published. The program carries authority through FY2026 and has appropriated approximately $90 million of its $370 million ceiling to date. Thea Energy completed a preconceptual pilot plant design milestone in December 2025, demonstrating the program's active execution. Organizations preparing for a future cohort should monitor the FES funding opportunities page and the related FOA reference DE-FOA-0003432 for follow-on solicitation announcements.