Trump expected to unveil $700M coal industry support plan using Defense Production Act
04 Jun 2026 14:52 UTC - by Bradford Betz
President Trump is expected to announce a nearly $700 million initiative to support coal plants, export infrastructure and coal projects using Defense Production Act authority.
➤ This initiative aims to revive the coal industry amidst a shift towards natural gas and renewables, sparking debate about environmental impact versus energy reliability.
➤ The plan includes funding for power plant upgrades, new coal projects, and export infrastructure, framing coal as an energy and national security priority.
➤ President Trump is expected to announce a $700 million initiative to support the U.S. coal industry using the Defense Production Act.
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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President Donald Trump plans to invoke the Defense Production Act to direct federal support to coal projects across the country.(Adrees Latif/Reuters)
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 funding package would provide more than $425 million to upgrade 13 existing coal-fired power plants.(Kent Nishimura / AFP via Getty Images)
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 administration has framed coal as both an energy-security and national-security priority.(Jim Urquhart/Reuters)
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.
Categories rationale: The article discusses a U.S. government initiative (jurisdictions: established-hubs), utilizing a specific law (legal-regulatory: enforcement-actions-litigation, as DPA is a form of regulatory action), and highlights political support for a specific industry (political-endorsements-opposition: pro-innovation-policy, though the 'innovation' is in the context of reviving a traditional industry).Characteristics justification: The article discusses a significant government intervention and funding for a traditional industry, indicating a degree of unusualness (entropy). The sentiment is mixed, leaning negative due to the underlying decline of the coal industry and the debate around its environmental impact, but also positive in its framing of energy security (sentiment). The topic of government policy and its effectiveness can introduce uncertainty. The relevance is high due to the specific policy announcement and its potential market impact.Tag relevance: The tags capture the key entities (Trump administration, coal industry), the mechanism used (Defense Production Act), the stated justifications (energy security, national security, AI data centers), and the specific actions (power plant upgrades, export infrastructure), as well as the broader market context (renewable energy).asset-types: others
rwa: false
entropy: 0.75
sentiment: -0.4
staleness: 0.3
relevance: 0.8
uncertainty: 0.6RWATimes slug: foxbusiness-trump-expected-to-unveil-700-m-coal-industry-support-plan-using-defense-production-act-2839884785