US coal industry support plan set out as Trump cites Defence Production Act for USD 700 million

President Donald Trump was expected to announce nearly $700 million in federal support for coal-fired power and coal exports on Thursday. A White House official said the administration planned to act under the Defense Production Act. The package was set to aid coal plants in several states, plus export facilities on the US West Coast.

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The White House official said the plan would support 13 coal plants nationwide. It also aimed to help build coal plants in Alaska and West Virginia. These would be the first new US coal plants since 2013. The official said the funding would also restart a closed coal-fired plant in Maryland.

Trump coal industry support uses Defense Production Act

Trump was expected to make the announcement later Thursday at the White House. Trump was expected to be joined by Interior Secretary Doug Burgum. Energy Secretary Chris Wright was also expected to attend. Environmental Protection Agency Administrator Lee Zeldin was also expected, the official said.

A White House official said the administration would also back a long-delayed coal export terminal in Oakland, California. Developers have been fighting the city of Oakland over the project. The terminal would sit on the site of a decommissioned Army base. The same funding push was expected to support coal exports more broadly.

Together, the announcements were expected to support or create more than 14,000 jobs. The official said roles would span coal, construction, rail and maritime work. The official spoke on condition of anonymity. The official said there was no authorisation to discuss details before Trump spoke.

Trump coal industry support follows earlier coal plans

The expected steps followed other moves aimed at slowing the coal industry’s long decline. The administration said last fall it would open 13 million acres of federal lands for coal mining. It also said $625 million would go to recommission or modernise coal-fired power plants. Bloomberg News first reported the new coal funding.

Soon after retaking office, Trump signed executive orders focused on coal. Coal was described as reliable but polluting in the administration’s broader energy debate. The fuel has lost ground due to environmental rules. It has also faced strong competition from cheaper natural gas and expanding renewable energy.

Under Trump’s orders, the Energy Department required some coal plants to run longer. The affected plants were in Michigan, Indiana, Colorado and Washington state. The administration linked the decision to rising electricity demand. It cited data centres, artificial intelligence, and electric cars as drivers.

The Energy Department also extended short-term orders to keep those coal units running. It additionally ordered some oil and gas-fired plants to stay online. Those plants were in Maryland and Pennsylvania. Wright said the emergency orders helped avoid major blackouts during frigid weather in late January and early February.

Trump coal industry support draws criticism and backing

Environmental groups criticised the new push to boost coal. The criticism came as the administration restricted renewable energy measures. The administration froze permits for offshore wind projects. It also ended clean energy tax credits. It also blocked wind and solar projects on federal lands.

"Propping up coal billionaires with taxpayer money is one more way for the Trump administration to put polluters first and put the rest of us at risk,\" said Kit Kennedy, managing director for power at the Natural Resources Defense Council. \"Whats next, a taxpayer bailout to build new phone booths?\"

Kennedy and other critics said Trump’s order would raise electricity bills and worsen air quality. \"The best thing for the air, the climate and our utility bills is to let these plants retire peacefully,\" she said. Supporters disputed that view and argued coal still played a stabilising role in the power system.

Rich Nolan, president and CEO of the National Mining Association, said coal power reduced exposure to unstable prices. Nolan also pointed to supply challenges linked to AI growth. \"Trumps strategy will ensure that upgrades to existing energy assets are made domestically, and at our ports to ensure that US coal can answer the worlds needs,\" he said.

Trump coal industry support comes as coal share shrinks

Coal once generated more than half of US electricity production. By 2024, its share was about 15%, down from about 45% in 2010. Natural gas supplied about 43% of US electricity. The rest came from nuclear energy and renewables, including wind, solar and hydropower.

US coal exports fell during the first year of Trump’s second term, the Energy Information Administration said. The decline was linked to reduced shipments to China. China imposed reciprocal tariffs on American goods last year. That followed broad tariffs announced by Trump, according to the agency.

Global coal demand rose to record levels in recent years, the International Energy Agency said. The agency expected demand to level off or fall in coming years. It also remained difficult for US firms to find new buyers. Coal reserves are widespread across many countries, limiting market opportunities.

Even so, Trump has pressed to revive coal exports on the West Coast. Coal miners have long sought routes from Utah and the Powder River Basin. The basin spans Montana and Wyoming. Local residents and advocacy groups have raised health and safety concerns. They cited coal trains and their effects on nearby communities and the environment.

With inputs from PTI