President Donald Trump plans to invoke the Defense Production Act to provide $700 million in funding to support and boost the coal industry as part of the administration’s broader effort to meet rising energy demand.
Trump is expected to make three funding announcements in the Oval Office on Thursday to support current and future coal plants, coal export terminals, and restart existing coal plants, a White House official told the Washington Examiner. The president is expected to be joined by Interior Secretary Doug Burgum, Energy Secretary Chris Wright, and Environmental Protection Agency Administrator Lee Zeldin.
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The announcement is part of the administration’s broader efforts to expand the use of fossil fuels to help meet rising energy demand caused by artificial intelligence and electrification. The administration is seeking to lower energy prices hiked up by the war in Iran.
Specifically, the president will provide $425 million in DPA funding to support 13 coal plants across the country, including in West Virginia, Kentucky, North Carolina, and Arizona. The president is also expected to provide $75 million in DPA funding for the construction of an export terminal, known as the West Gateway Terminal, in Oakland, California. The DPA, a 1950 law, gives the president the authority to influence domestic industries for national defense purposes.
Environmental groups have fought for years against the proposed terminal in California. The Natural Resources Defense Council told Bloomberg that the terminal would pollute local communities.
“What’s next — a taxpayer bailout to build new phone booths?” said Kit Kennedy, managing director for power at the Natural Resources Defense Council. “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. The best thing for the air, the climate, and our utility bills is to let these plants retire peacefully.”
The administration invoked the DPA in April to boost domestic production of oil products, natural gas, and coal, as well as the deployment of large-scale energy and grid-related infrastructure.
Trump also plans to announce about $200 million in Energy Department grant funding to build two new coal plants in Alaska and West Virginia and to restart a plant in Maryland.
The DOE, over the past year, has been at the forefront of keeping aging coal plants operating to prevent blackouts during peak summer and winter seasons. The department has issued nearly 19 emergency orders to prevent facility closures, including the closure of five coal-fired power plants.
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National Mining Association President and CEO Rich Nolan expressed support for the president’s use of the DPA to boost coal production.
“Coal generation shields consumers from the impacts of volatile energy prices and supply challenges; it’s a vital piece of a sound energy strategy designed to meet the challenge of today’s AI-driven demand growth in the context of the conflict in the Middle East,” Nolan said in a statement on Thursday.
“The administration is supporting that strategy with decisive action at home to ensure that upgrades to existing energy assets are made, and at our ports to ensure that U.S. coal can answer the world’s needs,” he added.
