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Trump announces $700 million coal industry revival plan
President Donald Trump unveiled a $700 million initiative on Thursday to bolster the U.S. coal industry, invoking wartime powers to secure funding amid rising energy costs.
Funding breakdown and objectives
The plan allocates $500 million in federal funds to preserve 14 existing coal-fired power plants and construct a new export terminal in California. An additional $200 million will finance the first new coal plants in the U.S. since 2013, located in Alaska and West Virginia.
Trump stated the initiative would protect 42 coal mines and create approximately 14,000 jobs, including 1,400 tied to the Oakland export terminal.
Use of the Defense Production Act
The president leveraged the Defense Production Act, a Cold War-era law, to justify the investment, framing coal as critical to national security. He argued the move would shield Americans from soaring energy prices, exacerbated by the conflict with Iran and disruptions in the Strait of Hormuz.
"Today 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."
Donald Trump, White House address
Targeted states and economic claims
The coal plants slated for support are located in Kentucky, North Carolina, Indiana, Tennessee, Arkansas, Arizona, Oklahoma, North Dakota, Wisconsin, and West Virginia. Trump asserted the plan would save consumers $50 billion in energy generation costs, preventing higher utility bills.
He also criticized nations investing in renewable energy, labeling them "failure countries" while praising coal-dependent economies.
Energy market context
The announcement comes as U.S. gasoline prices hit $4.24 per gallon, up from $2.98 at the start of military strikes against Iran, according to AAA. The Bureau of Labor Statistics reported a 17.9% year-over-year increase in consumer energy prices through April.
