Trump Approves $700 Million Plan to Bolster U.S. Coal Industry

Overview

• The White House announced the $700 million package on June 4, using roughly $500 million from the Defense Production Act and about $185 million in DOE subsidies to keep plants and mines operating and to fund new projects.
• Officials said DPA funding will support about 14 coal-fired plants and keep 42 mines open while DOE money will help build two new plants and restart a closed Maryland facility.
• The plan also directs about $75 million toward the proposed West Gateway export terminal in Oakland to create a new route for U.S. coal exports, with beneficiaries reported to include Duke Energy, Hallador Energy, Oklahoma Gas & Electric and an AEP subsidiary.
• Industry groups praised the move as a step to lower energy costs and strengthen supply, while environmental advocates warned the subsidies will prolong use of a high-emissions fuel and divert funds from cheaper clean alternatives.
• Coal already made up roughly 17% of U.S. power generation in 2025 and the Energy Information Administration projects about a 5% annual decline in coal generation through 2027, raising questions about the long-term market impact of the administration's intervention.