President Donald Trump on Thursday announced an $850 million package to support the U.S. coal industry, using emergency powers under the Defense Production Act to fund power plant upgrades and expand coal export infrastructure.
Speaking at the White House alongside senior administration officials and Republican governors from Wyoming and West Virginia, Trump said the initiative is aimed at strengthening U.S. energy security, meeting growing electricity demand from artificial intelligence data centers, and boosting coal exports to Asia.
The plan includes $425 million for upgrades at 13 coal-fired power plants and $75 million for the proposed West Gateway coal export terminal in Oakland, California. The Energy Department is also finalizing up to $350 million in previously announced funding for four coal-related projects, including new facilities in Alaska and West Virginia.
Trump argued that coal remains a reliable energy source that can help lower energy costs and reduce dependence on foreign supplies. Wyoming Governor Mark Gordon said Asian markets, including Japan and Taiwan, are seeking greater access to U.S. coal to support their own energy and AI-driven growth.
Environmental groups strongly criticized the move, warning that coal-fired generation contributes to air pollution and health problems. The Sierra Club described the funding as an unnecessary subsidy for a declining and highly polluting industry and signaled potential legal challenges.
Industry leaders welcomed the announcement, saying the investments will help maintain energy reliability and support rising power demand. The National Mining Association said stronger coal infrastructure would help stabilize energy supplies and expand export opportunities.
Coal’s share of U.S. electricity generation has fallen from more than half in 1990 to less than one-fifth today as utilities increasingly shift to natural gas and renewable energy. Employment in the U.S. coal sector has also continued to decline despite previous efforts to revive the industry.