President Donald Trump announced a $700 million federal initiative Thursday aimed at supporting coal-fired power plants, coal mines and export infrastructure, using emergency authority under the Defense Production Act to justify one of the administration’s most aggressive efforts yet to revive the coal industry.
Speaking at a White House event, Trump described the move as a way to lower energy costs and strengthen the U.S. electric grid. He again promoted what he called “clean, beautiful coal,” arguing that coal power is needed to meet rising electricity demand and protect American energy security.
The plan uses the Defense Production Act, a Cold War-era law that gives the president broad powers to direct industrial production in times of national need. The administration says the measure is necessary because the U.S. faces growing power demand from artificial intelligence data centers, manufacturing and broader economic growth.
According to Reuters, the funding package will support more than a dozen coal-fired power plants, help finance new coal facilities, and back coal export infrastructure. The administration says the goal is to strengthen domestic energy reliability and reduce dependence on foreign energy sources.
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The White House said the plan will help preserve 14 coal plants and 42 coal mines. Trump also said the administration would support two new coal plants, reportedly in Alaska and West Virginia, while helping restart an existing coal facility in Maryland. The plan also includes funding for a coal export terminal on the West Coast.
CBS News reported that the package includes $425 million for 13 existing coal-fired power plants across 10 states, $75 million for a coal export terminal in Oakland, California, and $185 million through the Energy Department for new or restarted coal facilities in Alaska, West Virginia and Maryland.
Trump framed the announcement as part of a broader energy affordability agenda. He argued that coal can provide steady power at a time when utilities face rising demand from AI, data centers and industrial expansion. The coal industry welcomed the decision, saying coal generation can help stabilize the grid and protect consumers from energy price volatility.
Supporters of the plan say coal remains an important baseload energy source because it can run continuously, unlike some weather-dependent sources. They argue that the U.S. should not retire coal plants too quickly before enough reliable replacement capacity is available.
The National Mining Association praised the announcement, arguing that coal can help meet the power needs of data centers and manufacturing. Industry supporters also say coal production supports jobs in mining communities that have suffered from years of plant closures and declining demand.
But environmental groups sharply criticized the plan, calling it a taxpayer-funded bailout for an industry that has been declining for years. Critics argue that coal is one of the dirtiest sources of electricity, producing large amounts of carbon dioxide as well as pollutants linked to respiratory and heart disease.
Coal has fallen sharply as a share of U.S. electricity generation over the past two decades. Natural gas, wind, solar and battery storage have grown as utilities seek cheaper and cleaner options. Reuters noted that coal now accounts for less than one-fifth of U.S. electricity generation, down from more than half in earlier decades.
Opponents also dispute Trump’s claim that coal will lower electricity bills. They argue that many coal plants are expensive to maintain and operate compared with newer gas and renewable projects. Some analysts say forcing older coal plants to remain open can increase costs for ratepayers if utilities must pay to keep uneconomic facilities running.
Climate groups are also expected to challenge the plan legally. They argue that using the Defense Production Act for coal subsidies stretches the law beyond its intended purpose and prioritizes fossil fuels at a time when the country should be reducing emissions.
The Sierra Club and other environmental organizations criticized the announcement, saying federal money should go toward cleaner energy, grid modernization, transmission infrastructure and storage rather than extending the life of aging coal plants.
The administration rejects that criticism and says the country needs reliable power now, not years from now. Trump and his energy officials have argued that renewable energy alone cannot meet the demands of AI growth, industrial reshoring and national security needs.
The announcement also fits Trump’s wider effort to reverse Biden-era climate rules and promote fossil fuel development. Since returning to office, Trump has moved to loosen restrictions on coal, oil and gas while criticizing wind and solar power as unreliable or too costly.
At Thursday’s event, Trump was joined by Republican officials from coal-producing states, including governors and lawmakers who have long argued that federal policy has unfairly targeted coal communities. For those states, the package represents both economic support and political validation.
The plan is likely to deepen the divide between the administration and environmental groups. Supporters see coal as a strategic energy resource that can help keep the grid stable. Critics see it as an expensive and polluting industry being kept alive by political intervention.
The practical impact will depend on how quickly the funds are distributed and whether the projects can survive legal, regulatory and market challenges. Building new coal plants is expensive, and many utilities have moved away from coal because of fuel costs, maintenance burdens and environmental compliance expenses.
Still, Trump’s announcement sends a clear message: his administration is prepared to use emergency powers to protect and expand coal infrastructure even as much of the energy sector moves toward gas, renewables and storage.
Why It Matters
The plan matters because it uses emergency federal authority to support an industry that has been shrinking for years. Supporters say coal is needed for energy reliability, national security and rising AI-driven electricity demand.
Critics say the move could increase pollution, raise costs and slow the transition toward cleaner energy. The use of the Defense Production Act also raises questions about how far presidents should go in using emergency powers to reshape energy markets.
What Comes Next
Federal agencies are expected to begin distributing funds for coal plant upgrades, new coal projects and export infrastructure. Legal challenges from environmental groups are likely, especially over the use of emergency powers and the environmental impact of extending coal plant operations.
The administration will continue arguing that coal is necessary for grid reliability and AI-related energy demand, while opponents will push for investment in cleaner and cheaper alternatives.
Reuters reported that Trump announced a $700 million plan to support coal plants and mines, citing national security concerns and rising electricity demand from AI data centers.
Trump announced a $700 million plan to support coal plants and mines, citing national security concerns and the need for reliable electricity for AI data centers https://t.co/Y5QGvAxqpo pic.twitter.com/KrHsvLJ5bR
— Reuters (@Reuters) June 4, 2026
