President Trump is set to announce a $700 million package aimed at shoring up the struggling coal industry, drawing on wartime powers under the Defense Production Act to fund existing plants and new infrastructure.
The plan, first reported by Bloomberg and confirmed to The Hill by a White House official, includes $425 million directed to 13 currently operating coal facilities and $75 million for a coal export terminal in California. An additional $185 million in Energy Department grants would finance the construction of two new coal plants in Alaska and West Virginia, along with restarting a shuttered plant in Maryland.
The announcement is expected during a Thursday event in the Oval Office, a venue the president has used for other controversial moments, such as his recent exchange with CNN’s Kaitlan Collins, where he claimed to see “hatred in her eyes.”
Coal’s share of U.S. electricity generation has been in steady decline since peaking in 2007, driven by cheaper natural gas, renewable energy growth, and mounting environmental regulations. The fuel is a major source of carbon emissions and pollutants linked to health problems, making it a lightning rod in the climate debate.
Trump has consistently championed coal as a reliable energy source, often labeling it “clean” and “beautiful” despite scientific evidence to the contrary. The administration argues the funding bolsters energy security and grid reliability, a stance that has drawn sharp criticism from environmental groups and Democrats.
The move comes as the White House faces multiple political battles, including a House rebuke over Ukraine military aid and a Senate immigration bill that sparked a GOP revolt. It also follows the president’s decision to defer to lawyers on the fate of a $1.8 billion fund, suggesting a pattern of using executive authority on key priorities.
Critics say the coal bailout is fiscally and environmentally unsound, pointing to the industry’s long-term decline and the availability of cleaner alternatives. Supporters, however, view it as a lifeline for jobs and communities dependent on coal mining and power generation.
The $75 million export terminal in California is particularly notable, as the state has aggressively pursued renewable energy and climate goals, creating tension with Trump’s pro-fossil fuel agenda.
With the 2024 election cycle heating up, the coal announcement is likely to energize Trump’s base in key swing states like West Virginia and Pennsylvania, while further alienating moderate voters concerned about climate change.
