President Donald Trump announced a $700 million [1] funding package on Thursday to support coal plants, mines, and a new export terminal.
The initiative marks a significant shift in energy policy by utilizing the Defense Production Act — a Cold War-era law — to bolster the fossil-fuel industry. The administration said the move will lower energy costs and increase the capacity of the U.S. coal sector.
During a White House press briefing, Trump said the investment would be used to safeguard existing infrastructure and expand export capabilities. He said that the plan would protect 14 coal plants [2] and 42 coal mines [3].
"As a result of the $700 million investment that I'm announcing today, we will protect 14 coal plants and 42 coal mines -- it's a tremendous number -- and build two new coal plants and one massive new export terminal, because we're exporting coal," Trump said.
Beyond the protection of existing sites, the administration plans to build two new coal plants [4]. The package also includes the construction of one massive new export terminal [5] located in California to facilitate the shipment of coal to international markets.
While most sources cite the funding at $700 million [1], some reports describe the amount as nearly $700 million. The administration said it intends to use these resources to ensure the stability of the domestic energy grid while pursuing new trade opportunities for American coal.
“The initiative marks a significant shift in energy policy by utilizing the Defense Production Act.”
By invoking the Defense Production Act, the administration is treating coal production and export as a matter of national security. This move signals a departure from recent global trends toward decarbonization and suggests a strategic priority to regain dominance in the global fossil-fuel market, specifically by expanding infrastructure on the West Coast.
