President Donald Trump announced a federal investment of approximately $700 million [1] to support coal-fired power plants and a coal export terminal.
The move signals a significant shift in U.S. energy policy by utilizing federal funds to sustain a fossil fuel industry that has faced steady declines due to competition from natural gas and renewables.
Speaking from the Oval Office on Thursday, Trump said the administration will use authority under a Cold War-era national defense law to support 13 coal plants across the country [4]. Trump said the goal is to bolster the struggling coal industry and expand exports to lower energy costs for consumers.
"We are taking historic action to bring down the price of energy and the cost of living for all Americans," Trump said.
The total investment is broken down into several key allocations. Approximately $425 million [2] is designated for existing coal plants, while $75 million [3] will be used to help build a coal export terminal. Additionally, the administration will provide $185 million [5] in grant funding for the construction of two new coal plants located in Alaska and West Virginia.
Trump said the administration's use of national defense laws allows for this targeted support. The strategy aims to stabilize the domestic energy grid by maintaining coal-fired capacity while simultaneously increasing the volume of coal shipped to international markets.
Critics of the plan often point to the environmental impact of coal, but the current administration is prioritizing the economic stability of coal-producing regions. By directing nearly $700 million [1] toward these projects, the government is attempting to reverse the trend of plant closures that have affected several states over the last decade.
“"We are taking historic action to bring down the price of energy and the cost of living for all Americans."”
This investment represents a strategic pivot toward energy independence through fossil fuel revitalization. By invoking Cold War-era national defense authorities, the administration is framing coal production not just as an economic issue, but as a matter of national security and grid reliability. This approach likely aims to secure political support in coal-heavy regions while challenging the global transition toward green energy.
