WASHINGTON — The Trump administration announced nearly $700 million in federal funding on Thursday to support the U.S. coal industry, including upgrades to existing power plants and the construction of the first new coal-burning facilities in more than a decade.
President Donald Trump said the funding package would help extend the life of struggling coal plants and boost domestic energy production amid rising electricity demand from data centers and other sectors. The announcement came during an event at the White House.
Of the total, about $425 million will support upgrades and life extensions for 13 existing coal-fired power plants across multiple states, using authority under the Defense Production Act, a 1950 law that allows the president to bolster industries deemed essential to national security, administration officials said. The plants are located in states including West Virginia, Kentucky, North Carolina, Indiana and others.
An additional portion of the funds, around $185 million from the Department of Energy, is directed toward building two new coal plants — one in Alaska and one in West Virginia — and restarting a shuttered facility in Maryland, according to officials. This would mark the first new coal power plants built in the United States since 2013.
The package also includes support for a coal export terminal in Oakland, California.
Trump administration officials have framed the initiative as necessary to ensure reliable baseload power and support jobs in coal-dependent communities. "As a result of the $700 million investment that I'm announcing today, we will protect 14 coal plants and 42 coal mines... and build two new coal plants and one massive new export terminal," Trump said, according to a transcript of his remarks.
The coal industry has faced a long-term decline due to competition from cheaper natural gas, renewable energy and stricter environmental regulations. Supporters, including industry groups such as America’s Power, welcomed the move as essential for energy security and grid reliability.
Environmental groups and critics have raised concerns about increased emissions and costs to taxpayers and ratepayers. Some analyses have questioned the long-term viability of such investments, but specific cost projections for this package were not detailed in the announcement.
The funding draws from multiple sources, including prior appropriations under the bipartisan infrastructure law originally intended in part for carbon capture projects, officials said. Details on exact allocations and timelines for individual projects remain unclear.
The announcement builds on earlier Trump administration actions, including executive orders in 2025 aimed at reinvigorating the coal sector and previous funding rounds totaling hundreds of millions of dollars.
As of Thursday, the Department of Energy was finalizing implementation of the new funding, with no immediate timeline provided for when the projects would begin operations.
