President Trump said Thursday that he is invoking Cold War-era authorities to dole out $700 million in federal funds to boost coal production in the U.S.
He will use the Defense Production Act of 1950 to send $425 million to 13 existing coal plants and allocate $185 million to build two new coal plants, one in Alaska and the other in West Virginia.
An additional $75 million would also be made available under the DPA to help build the proposed West Gateway export terminal, which would be used to export 12 million tons of coal from the U.S. to other countries.
The funds will support over 14,000 American jobs and save taxpayers $50 billion in electricity costs, Mr. Trump said in the Oval Office.
“As a result of the $700 million investment, 14 coal plants and 42 coal mines – a tremendous number – and build two new coal plants and one massive new export terminal because of coal,” he said. “Coal is a great business and it’s real power.”
The Defense Production Act is a 1950 law that grants the president the authority to direct federal funds to industries deemed necessary for national security.
Among the companies that will benefit from the funding are utilities Duke Energy, Hallador Energy, Oklahoma Gas & Electric and at least one subsidiary of American Electric Power.
Coal use has been on the decline for the past two decades. In 2023, the U.S. produced 578 million short tons of coal, less than half the amount produced in 2008, when American coal production was at its highest level, according to the U.S. Energy Information Administration.
The production decline is spread evenly across each type of coal and is the result of rising mining costs, increasingly stringent environmental regulations and competition from other sources of electric power generation, according to the EIA.
Climate Power, a clean energy advocate group, said Mr. Trump is investing tax dollars into an outdated mode of energy.
“This is the latest example of Trump’s failed energy policies that have driven utility rates up 18% while making his billionaire supporters even richer,” said Climate Power senior advisor Jesse Lee. “Now he’s spending $700 million of American taxpayer money to bail out the coal industry; meanwhile, he’s gaslighting the American people by claiming that his move will lower electricity prices in the middle of an energy affordability crisis that he created.”
Since returning to office, Mr. Trump has sought to reverse coal’s decline with several initiatives. He has also touted coal production as critical to reviving America’s energy dominance by boosting oil, gas and coal.
The Energy Department issued an emergency order to keep coal plants scheduled to close open, stating that their continued operation was necessary to keep the nation’s electric grid stable.
In addition, the Interior Department has moved to open more federal land for coal leasing in North Dakota, Montana and Wyoming.
Mr. Trump has ordered Defense Secretary Pete Hegseth to purchase electricity from coal plants to supply energy to military operations and defense facilities.
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