The lunar surface reactor will utilize nuclear fission to power NASA's upcoming Artemis campaign and future missions to Mars.
This initiative follows an executive order in December, which called for a renewed focus on such reactors and "American space superiority."
The reactor is designed to provide consistent power, independent of sunlight or weather, and must operate for years without refuelling, generating at least 40 kilowatts.
The urgency for this development was underscored by concerns over China and Russia's plans to build a lunar reactor by 2035, though some experts question the feasibility of the 2030 target.