World Bank President Ajay Banga has elevated nuclear energy financing to a stated institutional priority, marking the multilateral lender's most significant return to the sector in decades, US Treasury Secretary Scott Bessent confirmed before the House Financial Services Committee on 16 September 2026. The policy shift places nuclear power at the centre of the World Bank's strategy to expand reliable electricity access in the developing world.

What Bessent Told Lawmakers

Testifying before the committee, Bessent was unambiguous about Washington's push. 'Mr. Banga, who heads the World Bank, we have made it clear to him that this is a priority,' he said. 'And indeed, he has adopted this as a priority.' He added that the move represented 'the first time in decades that the World Bank has moved forward on nuclear energy.'

Bessent argued that nuclear power offered a credible pathway for the world's poorest nations to raise living standards and secure sustainable electricity. 'I think it is an important part for the poorest countries in engaging in their — in increasing their welfare levels and increasing their prosperity and developing truly sustainable energy,' he said.

Key Developments at the World Bank

The World Bank had already begun laying the groundwork, returning to nuclear energy financing in June 2025 after years of avoiding the sector. Committee Chairman French Hill noted that the institution had taken its first concrete step by signing an agreement with the International Atomic Energy Agency (IAEA) — the UN nuclear watchdog — allowing the bank to draw on technical expertise, support existing reactors, and explore the potential of small modular reactors (SMRs).

Hill also flagged the establishment of a new Nuclear Energy Assistance Trust Fund at the bank and expressed hope that the US Treasury would contribute additional funds going forward. Republican Representative John Rose noted the change could furnish developing countries with reliable, affordable, and secure energy — echoing earlier congressional legislation that had pushed the World Bank to reconsider its long-standing restrictions on nuclear financing.

Phasing Out China Lending by 2031

The nuclear pivot is unfolding alongside a broader reassessment of World Bank priorities. Hill welcomed the institution's decision to phase out lending to China by 2031, arguing that the world's second-largest economy — itself a major international creditor — no longer required development financing backed by American taxpayers.

'American taxpayers should not be backstopping Beijing and their ambitions at the World Bank,' Hill said. 'That's why the World Bank's decision to phase out its lending to China by 2031 is an important step in the right direction.' The freed-up capital is expected to be redirected toward lower-income nations that genuinely require development support.

IMF and China's Economic Imbalances

The committee also raised concerns about China's role at the International Monetary Fund (IMF). Bessent said the IMF was holding advanced discussions with Beijing on economic imbalances and the potential risks they posed to global financial stability — signalling that scrutiny of China's footprint in multilateral institutions extends beyond the World Bank.

Who Is Ajay Banga

Born in Pune, India, Ajay Banga became World Bank President in June 2023. The Indian-American executive previously served as chief executive of Mastercard and has shaped his World Bank tenure around employment generation, infrastructure development, private investment mobilisation, and expanding reliable energy access in developing economies. His backing of nuclear financing represents a notable departure from the cautious posture his predecessors maintained toward the sector for over two decades.

With congressional support growing and the IAEA partnership in place, the World Bank's next steps on nuclear financing — including the scale of SMR pilot programmes — are expected to come into sharper focus in the months ahead.