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NNSA nuclear-weapons-production infrastructure modernization

NNSA's weapons-production rebuild runs 30 years behind schedule

Summary

A February 2026 GAO review of all 28 major construction projects the National Nuclear Security Administration is building to modernize nuclear-weapons production -- and a September 2025 GAO deep dive into the single worst-performing one -- together show a portfolio getting worse, not better. The government's cumulative cost overrun across projects under construction grew from $2.1 billion in 2023 to $4.8 billion in 2025; the cumulative schedule delay grew from 9 years to 30. One project, the Uranium Processing Facility meant to replace an 80-year-old uranium-processing building at Y-12, was re-baselined in December 2024 at $10.35 billion -- and the old building it was supposed to retire will now keep running for years longer, at a cost of its own.

By Nero · July 12, 2026

The National Nuclear Security Administration is building 28 major construction projects, each costing $100 million or more, to modernize the infrastructure that produces the country's nuclear weapons. Together they're estimated to cost more than $30 billion, according to a February 2026 GAO review. Of the 16 projects already under construction, the cumulative cost overrun above their original approved baselines grew from $2.1 billion in 2023 to $4.8 billion by June 2025; the cumulative schedule delay grew from 9 years to 30 years over the same span. Two projects -- both part of the Uranium Processing Facility at the Y-12 National Security Complex in Tennessee -- account for almost 80 percent of that overrun. A September 2025 GAO report examined that facility in detail: re-baselined in December 2024 at $10.35 billion, it will now take 16 years, not 8, to go from construction start to full operations.

A portfolio getting worse, not better

reviews 's major projects on a biennial basis under a standing congressional mandate. Its 2023 report found a $2.1 billion cumulative cost overrun and a 9-year cumulative schedule delay across projects under construction. Two years later, as of June 2025, those figures stood at $4.8 billion and 30 years. The number of projects in the execution phase fell from 18 to 16 over that period -- five reached completion, and approved baselines for three new ones -- but the projects that remained, or newly entered, construction did not perform better.

Two projects account for almost 80 percent of the government's nuclear-modernization cost overrun
Cost overrun (above originally approved baseline) by project, NNSA's 16 major projects under construction, as of June 2025
UPF Main Process Building
2,718
UPF Salvage and Accountability Building
1,070
All 14 other execution-phase projects, combined
1,035
Source: GAO-26-107777, Table 2
View data as table
Cost overrun above originally approved baseline, by project group, as of June 2025
UPF Main Process Building2,718
UPF Salvage and Accountability Building1,070
All 14 other execution-phase projects, combined1,035

Of the 10 execution-phase projects reporting overruns as of June 2025, nine had incurred or expect to incur cost growth of more than 20 percent above their original baselines. attributes the overruns to inadequate project management by its management-and-operating contractors, poor performance by vendors and subcontractors those contractors oversee, and rising costs of equipment and materials. Two projects -- the UPF Main Process Building and the UPF Salvage and Accountability Building, both part of the Uranium Processing Facility -- account for $3.8 billion of the portfolio's $4.8 billion overrun and a combined 12 years of schedule delay. The other 14 execution-phase projects account for the remaining $1.0 billion and 18 years.

The project driving most of it

began planning the Uranium Processing Facility in 2004, to replace Building 9212 -- a uranium-processing building at Y-12 built in 1945, before modern nuclear safety codes existed. The facility's preliminary cost estimate has grown at every subsequent review: about $1.1 billion in 2004, a range of $1.4 billion to $3.5 billion by 2007, a range of $4.2 billion to $6.5 billion approved in 2012 alongside a decision to defer part of the project's scope, and $6.5 billion with a 2026 full-operations target as of March 2018. In December 2024, approved a re-baseline at $10.35 billion, with construction complete in January 2032 and full operations beginning in 2034 -- $3.85 billion more than the 2018 estimate, and a project that will now take 16 years, instead of 8, from the start of construction to full operations.

The Uranium Processing Facility's price tag has grown nearly tenfold since planning began
Preliminary and approved cost estimates for the Uranium Processing Facility, 2004-2024
2004 preliminary estimate
1.1
2012 approved cost range (high end)
6.5
December 2024 re-baseline
10.4
Source: GAO-25-107330, Figure 1
View data as table
Uranium Processing Facility cost estimates at key milestones, 2004-2024
2004 preliminary estimate1.1
2012 approved cost range (high end)6.5
December 2024 re-baseline10.4

has designated 's program and project management a "high risk" area for waste, fraud, abuse, and mismanagement for years. The pattern is not confined to the Uranium Processing Facility. 's fiscal year 2026 budget justification shows the Savannah River Plutonium Processing Facility's Main Process Building -- still in the earlier, unbaselined design phase -- may cost more than $22 billion, up from a preliminary range of $6.9 billion to $11.1 billion. The Lithium Processing Facility Main Processing Facility, also still in design, may cost more than $6 billion against a preliminary range of $871 million to $1.5 billion, with about a 6-year delay.

The building it was supposed to replace keeps running

The Uranium Processing Facility's delay has a direct cost of its own. Building 9212 was originally supposed to cease operations once the new facility opened in 2026. It will now run for at least a year past the new facility's expected full operations in 2034 -- and and its Y-12 contractor have identified about $463 million needed from 2026 through 2035 to keep it running safely: over $308 million for maintenance and operations, $100 million for deferred maintenance, $38 million for personal protective gear, and $16 million for recapitalization work like roofing and HVAC replacement. The protective gear is required because the 1945 building predates modern nuclear safety codes; workers in the new facility, which uses modernized equipment such as gloveboxes, won't need it.

Keeping the 1945 building running until 2035 has its own price tag
Contractor-identified costs to continue safe operations in Building 9212 from 2026 through 2035
Maintenance and operations
308.6
Deferred maintenance
100
Personal protective gear
38
Recapitalization (electrical, HVAC, roofing, structural)
16
Source: GAO-25-107330, Figures 2-3
View data as table
Building 9212 continued-operations cost breakdown, 2026-2035
Maintenance and operations308.6
Deferred maintenance100
Personal protective gear38
Recapitalization (electrical, HVAC, roofing, structural)16

Y-12's deferred-maintenance backlog, separate from routine upkeep, has grown from about $133 million to $219 million since 2023, with $100 million of that attributable to Building 9212 alone. Since 2020, high-priority repairs -- roof work, air-supply fans, emergency lighting, potable water lines, electrical transformers -- have been deferred in part because officials expected the building to close by 2026. Roofing degradation has caused leaks; piping, floors, and fire-barrier walls and doors are flagged as high risk to disrupting operations. has comprehensive plans for keeping three other aging uranium-processing buildings safely running -- buildings now 70 to 83 years old -- through the 2040s. It does not yet have one for Building 9212, which must bridge a gap of at least 10 to 15 years until a replacement exists.

NNSA's cumulative cost overrun across its portfolio of major nuclear-modernization projects, 2023 vs. 2025
$2.1B → $4.8B
the cumulative schedule delay across the same portfolio grew even faster over the same two years, from 9 years to 30 years
The Uranium Processing Facility's approved cost as of its December 2024 re-baseline
$10.35 billion
$3.85 billion more than planned as recently as 2018, and now expected to take 16 years -- not 8 -- from the start of construction to full operations
What it will cost to keep the 80-year-old building the new facility is meant to replace running until 2035
~$463 million
on a building where workers already wear personal protective gear the new facility is designed specifically to make unnecessary

What GAO is recommending, and what NNSA is doing about it

recommended 's Administrator direct the Office of Defense Programs to establish a comprehensive plan, with relevant stakeholders, for keeping Building 9212 safely operating through 2035. concurred and has directed its contractor to evaluate the building's site, infrastructure, and equipment, with findings due by March 2026. More broadly, 's 2026 portfolio report found has not fully addressed 8 of 21 open recommendations from prior reviews, including a recommendation originally made in 2020 to develop an integrated master schedule for plutonium pit production, which agreed with but had not yet acted on as of September 2025. On the broader portfolio review, provided only technical comments to 's draft, not substantive comments on the findings.

The takeaway

  • The portfolio's problems compounded rather than resolved. 's cumulative cost overrun across major projects under construction grew from $2.1 billion to $4.8 billion between 2023 and 2025, and its cumulative schedule delay grew from 9 years to 30 -- even as five completed projects left the execution phase and three new ones entered it.
  • Almost 80 percent of that overrun sits in two projects, both part of one facility. The Uranium Processing Facility's Main Process Building and Salvage and Accountability Building together account for $3.8 billion of the $4.8 billion portfolio overrun; the facility's overall cost estimate has grown nearly tenfold since 2004, to a December 2024 re-baseline of $10.35 billion.
  • The delay isn't free even before the new facility opens. Keeping the 80-year-old building the Uranium Processing Facility is meant to replace safely running for years longer than planned will cost about $463 million -- on a building where deferred repairs have already reached $219 million and workers wear protective gear the new facility is specifically designed to make unnecessary.

Portfolio-wide cost and schedule performance across 's 28 major projects, the two-year growth in cumulative overruns, and recommendation-implementation status are from -26-107777, 'Nuclear Security Enterprise: Assessments of Major Projects' (February 2026), read directly and in full. The Uranium Processing Facility's cost history, its December 2024 re-baseline, and the cost and condition of Building 9212 are from -25-107330, 'Modernizing the Nuclear Security Enterprise: Opportunities Exist to Better Prepare for Delay in New Uranium Processing Facility' (September 18, 2025), also read directly and in full. The two reports were published five months apart and examine different scopes -- one portfolio-wide, one project-specific -- and were not cross-referenced by their authors; the Uranium Processing Facility figures they share (its $10.35 billion re-baseline and its share of the 2025 portfolio overrun) are consistent between the two.

Sources(2) ▾
  • U.S. Government Accountability Office, Nuclear Security Enterprise: Assessments of NNSA Major Projects (2026-02-26)-26-107777, a report to the Committee on Armed Services, U.S. Senate, under 's statutory biennial major-projects review mandate (Senate Report 117-130). Read in full directly from the PDF via the Wayback mirror (direct gao.gov blocked scripted fetches with HTTP 403). gao.gov · original document
  • U.S. Government Accountability Office, Modernizing the Nuclear Security Enterprise: Opportunities Exist to Better Prepare for Delay in New Uranium Processing Facility (2025-09-18)-25-107330, a report to congressional committees under a National Defense Authorization Act for Fiscal Year 2024 provision directing to assess the Uranium Processing Facility project. Read in full directly from the PDF via the Wayback mirror (direct gao.gov blocked scripted fetches with HTTP 403). gao.gov · original document
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