Vistra Corp. (NYSE: VST) shares moved lower before recovering on Friday after a Bloomberg report said the Trump administration was preparing a roughly $4 billion loan package for the company. The funding would support upgrades at three of Vistra’s nuclear plants: two in Ohio and one in Pennsylvania.

The stock fell to a session low of $135.79 before trimming its losses and trading near $139.20, down about 0.3% for the session. Before the Bloomberg report was published, Vistra shares were trading near $137.

According to people familiar with the matter, US Energy Secretary Chris Wright could announce the funding as soon as Monday during a visit to the Perry nuclear complex northeast of Cleveland. Perry is part of the three-plant nuclear fleet Vistra gained through its 2024 acquisition of Energy Harbor, which also includes Davis-Besse in Ohio and Beaver Valley in Pennsylvania. Neither the Energy Department nor Vistra immediately responded to requests for comment.

Investing.com reported the same loan details, citing people who were not authorized to speak publicly. Both reports described the proposed loan as being tied to the Perry complex and the two other plants included in the upgrade plan. Whether the package is confirmed as described — and what terms are attached — remains to be seen.

Why the Administration Is Supporting Nuclear Power

US electricity demand is rising rapidly, with data centers requiring a steady power supply and increasing pressure on grid operators to secure additional generation. The Trump administration has set a goal of quadrupling US nuclear capacity by 2050.

Upgrading existing nuclear plants is viewed as one of the quickest ways to increase capacity. Constructing new reactors can take years, while permitting processes and high construction costs can further delay projects. Expansions at existing sites, including those planned for Vistra, could provide a faster route to additional megawatts.

The exact scale of the planned expansions has not been made public. Reports have not specified how much additional capacity the three plants could add.

Vistra’s Role in PJM Interconnection

Vistra is a major power supplier to PJM Interconnection, the largest grid operator in the United States, and one of the largest competitive power generators in the country. PJM’s service area extends from Illinois to Washington, D.C., and serves about 67 million people.

The grid has faced increasing pressure as it works to keep pace with demand from data centers. The White House views nuclear expansion as one way to ease that pressure. Officials have also described nuclear power as a potential source of lower-cost electricity that could support manufacturing and broader economic growth.

As of Friday afternoon, VST was changing hands at around $139.20, down roughly 0.3% on the day.