Key Moments
- U.S. President Donald Trump is preparing to deploy Cold War-era Defense Production Act authority to direct nearly $700 million to coal-related projects, according to a White House official.
- More than half of the planned funding is slated for upgrades at 13 coal-fired power plants, with additional allocations for projects in Alaska, Maryland, West Virginia and Northern California.
- The initiative comes as coal use in U.S. power generation has declined from more than half of electricity output to less than one-fifth in recent years, according to the U.S. Energy Information Administration.
Planned Use of Defense Production Act
WASHINGTON, June 3 (Reuters) – U.S. President Donald Trump is preparing to rely on authorities created during the Cold War to channel close to $700 million toward coal infrastructure, a White House official said.
Trump could announce as early as Thursday that he intends to invoke the Defense Production Act, a 1950 statute that provides broad presidential powers over industries tied to national security, the official said. The planned action would target several coal-related initiatives, including upgrades at existing power stations, construction of a large coal export facility on the West Coast, and public funding to match private capital for new power plants.
The White House official, who requested anonymity to avoid getting ahead of a formal presidential announcement, emphasized that the plan’s specifics remain subject to change.
Energy Strategy and Declining Coal Demand
The administration has positioned its energy agenda in stark strategic terms as it considers rising domestic electricity needs from artificial-intelligence data centers and seeks to reduce the influence of foreign rivals that control substantial fossil fuel reserves.
Coal has nonetheless seen a sustained drop in its role within the U.S. power sector. It previously supplied more than half of U.S. electricity generation, but its contribution has fallen to less than one-fifth in recent years, according to the U.S. Energy Information Administration.
Many power producers have migrated toward lower-cost natural gas and various renewable options, mindful of fossil fuels’ contribution to climate change and growing exposure to fragile global supply chains.
Breakdown of Proposed Coal Funding
According to the White House official, the nearly $700 million package would be allocated across several categories of coal-related projects:
| Category | Planned Amount | Description |
|---|---|---|
| Coal plant upgrades | More than half of $700 million | Funding for upgrades at 13 existing coal-fired power plants |
| Corporate matching funds | $185 million | Federal funds to match corporate investment in coal facilities in Alaska, Maryland and West Virginia |
| West Gateway export terminal | $75 million | Support for the long-proposed West Gateway coal export terminal in Northern California |
The official said the plan includes using federal resources to match corporate funds for coal facilities in Alaska, Maryland and West Virginia. In addition, $75 million is earmarked to back the long-discussed West Gateway export terminal in Northern California.
Market Context and Reporting
Interest in the package centers on how it could alter the trajectory of coal within the U.S. power mix at a time when utilities have pivoted away from the fuel. The proposed use of the Defense Production Act ties coal support directly to national security considerations, as framed by the administration.
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