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05 June 2026 at 05:52 pm IST
President Donald Trump has announced a major federal initiative to bolster the U.S. coal industry, directing more than $850 million toward coal-fired power plants, export infrastructure, and new coal-related energy projects. The move is part of the administration’s broader strategy to strengthen domestic energy security and support growing electricity demand, particularly from AI data centers and advanced industries. Using the Defense Production Act, a Cold War-era emergency powers law, Trump authorized $425 million for upgrades to 13 coal-fired power plants and $75 million to support the proposed West Gateway coal export terminal in Oakland, California. In addition, the Department of Energy is finalizing up to $350 million in funding for four coal facility projects, including new developments in Alaska and West Virginia. Speaking at the White House alongside senior administration officials and Republican governors, Trump described coal as a reliable energy source that can help lower costs and strengthen U.S. competitiveness. Supporters argue the investment will improve grid reliability, meet rising power demand, and expand export opportunities, particularly in Asian markets where energy needs continue to grow. The announcement has drawn strong criticism from environmental groups, which argue that public funds should not be used to support one of the most carbon-intensive energy sources. Critics warn that coal-related air pollution contributes to respiratory and cardiovascular diseases and could undermine climate goals. The initiative comes despite coal’s long-term decline in the U.S. energy mix. Once responsible for more than half of the nation’s electricity generation, coal now accounts for less than 20% as utilities increasingly turn to natural gas and renewable energy. Nevertheless, the administration views coal as a strategic asset in its push to secure affordable and dependable energy supplies for the future.
