President Donald Trump is expected to announce a nearly $700 million initiative Thursday aimed at supporting the U.S. coal industry, including funding for power plant upgrades, new projects and export infrastructure.
According to a White House official, Trump plans to invoke the Defense Production Act, a Cold War-era law that grants presidents broad authority over industries considered vital to national security, to direct federal support to coal projects across the country.
The announcement could come as soon as Thursday afternoon during a White House event focused on what the administration has called “beautiful clean coal.”
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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.
The official, who spoke on condition of anonymity ahead of the president’s formal announcement, cautioned that details could still change.
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The latest initiative represents another step in the Trump administration’s broader effort to revive the coal industry after decades of decline.
Coal generated more than half of U.S. electricity in 2000. Today, it accounts for less than one-fifth of power generation, according to data from the U.S. Energy Information Administration, as utilities have increasingly shifted toward natural gas and renewable energy sources.
The administration has framed coal as both an energy-security and national-security priority, arguing reliable electricity generation will be critical as the United States works to meet growing power demand from artificial intelligence development and data centers while competing with geopolitical rivals.
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Trump has previously taken several actions intended to support the industry. The Energy Department has issued emergency orders directing some coal plants to continue operating beyond planned retirement dates, while the Interior Department has moved to expand coal leasing opportunities on federal lands.
The president has also directed the Pentagon to pursue agreements to purchase electricity generated by coal-fired power plants for military purposes.
Supporters of the administration’s approach argue coal remains an important source of around-the-clock electricity generation capable of helping meet surging power demand. Critics, meanwhile, cite coal’s environmental impact and note that utilities have increasingly turned to lower-cost natural gas and renewable alternatives.
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Bloomberg first reported details of the planned funding initiative.
Reuters contributed to this report.
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