Trump Announces $700 Million Federal Support Plan for Coal-Fired Power and Exports Using Defense Production Act

Washington, D.C. – President Donald Trump announced on June 4, 2026, a nearly $700 million federal initiative to bolster America’s coal industry, invoking the Defense Production Act to upgrade existing plants, construct new facilities, and expand export capabilities amid surging electricity demand from AI data centers and manufacturing.

The plan directs approximately $425 million to support and upgrade 13 existing coal-fired power plants across 10 states, $185 million to help build two new coal plants in Alaska and West Virginia — the first new U.S. coal plants since 2013 — and additional funding to restart a shuttered plant in Maryland. Roughly $75 million will support construction of a long-delayed coal export terminal in Oakland, California.

Speaking in the Oval Office, Trump emphasized coal’s role in ensuring reliable, affordable energy. “We’re taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal,” he stated. The initiative is projected to protect 14 coal plants and 42 mines while supporting approximately 14,000 jobs.

The funding leverages authorities under the 1950 Defense Production Act, which Trump has used to prioritize national security-related industries, including baseload power generation critical for grid reliability and defense infrastructure. Administration officials framed the move as essential to counter years of regulatory attacks on coal that led to plant closures and rising energy costs.

The announcement aligns with broader Trump administration efforts to restore American energy dominance, including executive orders designating coal as a critical mineral and directing the Department of Energy to prevent premature plant retirements. Officials highlighted growing electricity needs from artificial intelligence, data centers, and domestic manufacturing resurgence as key drivers.

Trump also signaled continued action to approve new coal mine permits on federal lands and expand coal exports, positioning the U.S. as a leader in global energy markets rather than relying on foreign suppliers. The plan aims to deliver long-term savings estimated in the billions for American consumers through stable, dispatchable power.

Environmental groups and some Democrats criticized the initiative as a setback for renewable energy goals, but supporters argue reliable baseload power from coal is vital for national security and economic strength amid unreliable intermittent sources. The funding will be allocated through the Department of Energy and other agencies.

This latest step reinforces the administration’s commitment to an all-of-the-above energy strategy that prioritizes domestic resources and rejects policies that have crippled coal communities for over a decade.