Overview
- Multiple outlets reported Thursday that the White House intends to invoke the 1950 Defense Production Act to mobilize nearly $700 million in federal support for the U.S. coal sector.
- Officials described the package as roughly $425 million to upgrade 13 existing coal plants, $185 million in DOE grants or matches for new or restarted projects in Alaska, Maryland and West Virginia, and about $75 million for a proposed Oakland export terminal.
- The administration frames the move as a national security and reliability measure, saying it will help meet rising electricity demand from sources like AI data centers and reduce reliance on foreign energy holders.
- Environmental groups immediately condemned the plan as using taxpayer money to prop up coal and warned of added pollution, while local opponents and pending legal disputes continue over the Oakland export hub.
- Coal’s share of U.S. power has fallen from over half historically to under one-fifth today, and analysts say this intervention could prolong plant operations, change regional emissions and trigger further legal and political fights over U.S. energy policy.