Trump announces $700M coal initiative using Defense Production Act
President Donald Trump on Thursday announced a nearly $700 million initiative aimed at supporting the U.S. coal industry, including funding for power plant upgrades, new projects and export infrastructure.
The announcement came during a White House event focused on what the administration has called "beautiful clean coal."
Trump announces $700M coal initiative
Big picture view:
The funding package would provide more than $425 million to upgrade 13 existing coal-fired power plants. Another $185 million would be used to match corporate funding for coal projects in Alaska, Maryland and West Virginia, while $75 million would support construction of the long-proposed West Gateway coal export terminal in Northern California, according to the White House official.
What they're saying:
"As a result of the $700 million investment that I'm announcing today, we will protect 14 coal plants and 42 coal mines, a tremendous number, and build two new coal plants and one massive new export terminal," Trump told reporters Thursday.
Trump also invoked the Defense Production Act, a 1950 law allowing presidents the authority over national security-related industries, to direct federal support to coal projects across the country.
"Today we're officially invoking the Defense Production Act to save 13 coal plants in West Virginia, Kentucky, North Carolina, Indiana, Tennessee, Arizona, Arkansas, Oklahoma, North Dakota and Wisconsin. These were incredible plants, so productive, really producing a lot of the electricity, right," Trump added. "This action will allow these facilities to invest in upgrades that will extend their operational lives for decades into the future, reinforce the reliability of our electric grid, which is really the biggest beneficiary and most importantly, keep electricity prices very low for the American people."
FILE-President Donald Trump speaks from the Cross Hall of the White House on April 1, 2026 in Washington, D.C. (Photo by Alex Brandon-Pool/Getty Images)
In the past, Trump has implemented several actions to support the industry. The Energy Department issued emergency orders requiring some coal plants to continue operating beyond planned retirement dates, while the Interior Department moved to expand coal leasing opportunities on federal lands, according to FOX Business.
Trump $700 million coal initiative
Dig deeper:
Power producers transitioned to low-cost natural gas and renewable sources with concerns of fossil fuel's impact on climate change and growing reliance on global supply chains.
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In 2000, coal produced over half of U.S. electricity. Now, it represents less than one-fifth of power generation, according to statistics from the U.S. Energy Information Administration.
The Source: Information for this story was provided by FOX Business and Reuters. This story was reported from Washington, D.C.