President Donald Trump announced plans on Thursday to direct nearly $700 million in federal support toward the U.S. coal industry. The administration will use the Defense Production Act to fund coal-fired power plants, new coal projects, and export infrastructure.
The announcement was made during an event at the White House attended by lawmakers, governors, and industry leaders from major coal-producing states. Trump said the initiative is intended to lower energy costs, strengthen the electric grid, and support domestic energy production.
“Today, we’re taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal,” Trump said during the event.
“In terms of power, there’s really nothing like it.”
According to administration officials, more than $425 million will be used to upgrade 13 existing coal-fired power plants. The funding will help extend the lives of facilities in West Virginia, Kentucky, North Carolina, Indiana, Tennessee, Arizona, Arkansas, Oklahoma, North Dakota, and Wisconsin.
Another $185 million will be used to match private-sector funding for new coal projects. Officials said the effort could help build the first new coal plants in the United States since 2013. The projects are planned for Alaska and West Virginia.
The package also includes $75 million for the proposed West Gateway coal export terminal. The facility would be located at the Port of Oakland in California.
White House officials said the terminal could provide export capacity for coal produced in Wyoming, Montana, and other states. They said the facility could handle as much as 12 million tons of coal exports annually.
Trump said the investment will support 42 coal mines and more than 14,000 jobs. He also said it will help reduce electricity costs for American consumers.
The president said the upgrades would allow existing plants to continue operating for decades. He said the investment would improve the reliability of the nation’s electric grid.
The administration views coal as a critical component of national security and energy security, according to Trump. He argued that growing electricity demand from artificial intelligence development and data centers will require reliable sources of power that can operate around the clock.
“Without massive amounts of energy, you can’t even play the game,” Trump said.
The initiative expands on actions the administration has already taken to support the coal sector. Earlier this year, Trump issued an executive order invoking the Defense Production Act. The order declared coal production and coal-fired power generation matters of national security.
Administration agencies have since pursued policies aimed at extending the operation of existing coal plants. They have also moved to expand coal leasing opportunities on federal lands.
Energy Secretary Chris Wright defended the administration’s approach. He argued that coal remains essential to both electricity generation and heavy industry.
“It’s been the largest source of global electricity for 125 years in a row and will be for decades to come in the United States,” Wright said. “It remains a critical source of our electricity. Also, a critical source for our industry, we can’t produce steel and cement and other materials without coal.”
Industry groups welcomed the announcement. Rich Nolan, president and CEO of the National Mining Association, said coal remains an important part of meeting rising energy demand, particularly as artificial intelligence infrastructure expands.
He said the administration’s investment would help modernize existing energy assets. He added that it would improve coal export capabilities.
Environmental groups criticized the plan and signaled potential legal challenges. Patrick Drupp, climate policy director for the Sierra Club, called the investment a taxpayer-funded subsidy for a declining industry. He argued it would increase pollution and electricity costs.
Coal accounted for more than half of U.S. electricity generation in 2000. According to the U.S. Energy Information Administration, that figure has fallen to less than one-fifth today. Utilities have increasingly shifted toward natural gas and renewable energy sources.