Trump announces $700 million in new support for struggling coal industry

WASHINGTON (AP) — President Donald Trump is again seeking to boost the struggling U.S. coal industry, announcing a plan Thursday to spend nearly $700 million to support coal-fired power plants and coal exports.

Trump said the administration will use authority under a Cold War-era national defense law to support 13 coal plants across the country and help build coal plants in Alaska and West Virginia — the first new U.S. coal plants since 2013. The money will also help restart a shuttered coal-fired power plant in Maryland and support construction of a long-delayed coal export terminal in Oakland, California.

Together, the announcements will support or create more than 14,000 jobs in coal, construction, rail and maritime industries, a White House official said. Trump invoked the Defense Production Act, a 1950 law that grants presidents broad authority over national security-related industries, and said his actions will allow coal plants to invest in upgrades that will extend their operational lives for decades.

The plan will “reinforce the reliability of our electric grid, which is really the biggest beneficiary,” Trump said at a White House event that also touched on renovations to the Reflecting Pool, the wars in Ukraine and Iran and a UFC cage being built at the White House.

“Coal’s a great business,” Trump said. “In terms of power, there’s really nothing like it.”

Trump seeks to reverse long-term decline in US coal

The announcement is the latest step by Trump to try to reverse the years-long decline in the U.S. coal industry. The administration said last fall it would open 13 million acres of federal lands for coal mining and provide $625 million to recommission or modernize coal-fired power plants. Trump issued executive orders soon after retaking office to try to revive coal, a reliable but polluting energy source that’s long been shrinking amid environmental regulations and competition from cheaper natural gas and renewable energy.

Under Trump’s orders, the Energy Department has required coal-fired power plants in Michigan, Indiana, Colorado and Washington state to keep operating past their retirement dates to meet rising U.S. power demand amid growth in data centers, artificial intelligence and electric cars. The Energy Department has extended short-term orders to allow those efforts to continue, and has ordered oil and gas-fired plants in Maryland and Pennsylvania to run past scheduled retirement dates.

Energy Secretary Chris Wright issued an emergency order Thursday requiring a coal-fired power plant in Orlando, Florida, to remain open past a planned shutdown this month.

Wright repeated a claim Thursday that the administration’s use of emergency orders to keep aging coal-fired plants operating helped prevent major blackouts during brutally frigid weather that gripped most of the country in late January and early February.

The Environmental Protection Agency, meanwhile, proposed revisions to an Obama-era rule on regional haze that EPA Administrator Lee Zeldin said would have forced the closure of a coal-fired power plant in Wyoming. The plant uses Wyoming coal, supports hundreds of Wyoming mining and energy jobs and is essential to delivering reliable, affordable energy to families across the state, Zeldin said.

Interior Secretary Doug Burgum, the third Cabinet member at the White House event, called coal crucial to the U.S. electric grid. “It’s the backbone of having affordable, reliable and secure American energy to power our country, power our electric grid, power our competitiveness in AI and power all the manufacturing that’s coming back,” he said.

Activists call Trump’s priorities archaic

Environmental groups denounced the latest efforts to boost coal, which come as the Trump administration has clamped down on renewable energy, including freezing permits for offshore wind projects, ending clean energy tax credits and blocking wind and solar projects on federal lands.

“Propping up coal billionaires with taxpayer money is one more way for the Trump administration to put polluters first and put the rest of us at risk,” said Kit Kennedy, managing director for power at the Natural Resources Defense Council. “What’s next, a taxpayer bailout to build new phone booths?”

Trump’s order will result in higher electricity bills and dirtier air, Kennedy and other critics said. “The best thing for the air, the climate and our utility bills is to let these plants retire peacefully,” she said.

“Spending $700 million to bail out the coal industry is like throwing a lifeline to a ship that has already sunk,” said Lena Moffitt, executive director of Evergreen Action, another environmental group.

Rich Nolan, president and CEO of the National Mining Association, said coal generation helps shield consumers from the impacts of volatile energy prices and supply challenges exacerbated by AI.

Trump’s strategy will “ensure that upgrades to existing energy assets are made” domestically, “and at our ports to ensure that U.S. coal can answer the world’s needs,” he said.

Coal once provided more than half of U.S. electricity production, but its share dropped to about 15% in 2024, down from about 45% as recently as 2010. Natural gas provides about 43% of U.S. electricity, with the remainder from nuclear energy and renewables such as wind, solar and hydropower.

Coal exports have dropped

U.S. coal exports dropped during the first year of Trump’s second term, largely due to less coal being shipped to China after it imposed reciprocal tariffs on American products last year in response to broad tariffs announced by Trump, according to the Energy Information Administration. Global coal demand rose to record levels in recent years but is expected to flatten or decline in the coming years, according to the International Energy Agency.

It’s hard for U.S. companies to expand into new markets because there are plentiful reserves of coal around the globe.

Even so, Trump has pushed to revive coal exports on the West Coast. Coal miners have long sought to ship coal from Utah and the Powder River Basin in Montana and Wyoming to markets in Asia.

Developers are fighting the city of Oakland to build an export terminal on the site of a decommissioned Army base. Community members and advocacy groups have voiced concerns over how trains loaded with coal will affect public health, safety and the environment.

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Associated Press writer Matthew Brown in Billings, Montana, contributed to this report.