Trump To Use Defense Production Act To Direct Nearly $700 Million Toward Coal Plants And Asian Exports

President Donald Trump announced a coal industry plan that would use emergency powers to fund power plant upgrades, support two new coal plants and advance a West Coast export terminal.

By yourNEWS Media Newsroom

President Donald Trump announced Thursday that he will use Cold War-era emergency powers to direct nearly $700 million toward the U.S. coal industry, including funding intended to help ship coal to Asia and support domestic power generation.

WATCH:

The plan relies on the Defense Production Act of 1950, a law that gives presidents broad authority over industries considered important to national security. Trump intends to use that authority to fund upgrades at more than a dozen coal-fired power plants, help finance two new coal plants and support construction of a coal-export terminal on the West Coast.

The administration has presented the initiative as part of a national security strategy centered on energy supply. Officials have said expanded power generation is needed to meet rising electricity demand from artificial intelligence data centers and to reduce U.S. dependence on other countries.

Coal remains one of the most carbon-intensive fuels, and the plan drew criticism from environmental advocates who oppose expanding coal use and export capacity.

The proposal would direct federal support both to domestic coal-fired generation and to infrastructure aimed at moving U.S. coal into Asian markets. The export component is designed to strengthen the industry’s ability to ship fuel overseas, while the domestic portion would help power companies continue operating and upgrading coal-burning plants.

Trump’s decision to invoke the Defense Production Act places coal policy within the administration’s broader argument that energy production, grid reliability and industrial competitiveness are national security priorities.

The announcement marks a major federal effort to stabilize and expand parts of the coal sector at a time when electricity demand is rising and the administration is seeking to preserve coal as part of the nation’s energy mix.