Atomic Energy Act Creates AEC, Establishes Unprecedented Peacetime Secrecy Regime

President Harry Truman signs the Atomic Energy Act of 1946 on August 1, establishing the Atomic Energy Commission (AEC) to control the development and production of nuclear weapons and to develop nuclear power. The act creates unprecedented peacetime secrecy powers and establishes the framework for the nuclear-industrial complex that will channel billions of dollars to private contractors.

The legislation transfers control of nuclear materials and technology from the Manhattan Project’s military leadership to a new five-member civilian commission. Senator Brien McMahon of Connecticut champions the civilian control provisions against proposals for continued military oversight. However, “civilian control” in practice means control by commissioners with extensive ties to industry and the military establishment.

The Atomic Energy Act creates the category of “Restricted Data,” classifying all information concerning nuclear weapons design and production at birth, regardless of origin. This “born classified” concept is unprecedented in American law, meaning even privately developed nuclear information is automatically government property. The AEC gains sweeping powers to classify, declassify, and control all nuclear information, establishing a secrecy apparatus that expands far beyond its original scope.

The act establishes a system where private corporations like General Electric, Westinghouse, and Union Carbide operate government-owned production facilities under generous cost-plus contracts. These arrangements generate enormous profits while shifting all risk to taxpayers. The AEC’s dual mandate to promote and regulate nuclear energy creates inherent conflicts of interest that prioritize industry expansion over safety and environmental protection.

David Lilienthal, the first AEC chairman, initially champions transparency and civilian control but increasingly confronts the impossibility of open governance within the national security framework. The AEC becomes a model for the expanding secrecy state, with its classification powers and industry partnerships providing templates for subsequent agencies. The nuclear complex it creates spends over $750 billion through 1996, with massive cost overruns and environmental contamination at sites across the country, much of it concealed from public scrutiny.