Donald Trump plans to use Cold War-era national defense powers to allocate nearly $700 million to support coal facilities. The plan includes upgrading coal power plants, building a West Coast export terminal, and matching corporate funds for new plants.
The plan represents a significant intervention in the energy market, using national defense powers to support a declining fossil fuel industry amidst broader energy transition trends and concerns about climate change.
U.S. President Donald Trump is planning to use Cold War-era national defense powers to allocate nearly $700 million to support coal facilities. The plan involves invoking the Defense Production Act, potentially as soon as Thursday, to facilitate upgrades to more than a dozen coal power plants, establish a new coal export terminal on the West Coast, and match corporate funding for the construction of new power plants. The administration frames these energy initiatives in terms of national security, citing the need to power AI data centers and marginalize foreign adversaries with large fossil fuel reserves. Despite coal's declining U.S. usage, falling to less than one-fifth of electricity generation from over half historically, this funding aims to revitalize the sector. Of the total $700 million, over half will fund 13 coal plant upgrades, $185 million will match corporate funds for facilities in Alaska, Maryland, and West Virginia, and $75 million will support the proposed West Gateway export terminal in Northern California.
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