President Donald Trump has announced a major federal investment aimed at revitalising the US coal sector, unveiling a package worth $700 million that he says will protect existing facilities, reopen mines and expand coal-based power generation across multiple states. The funding will be channelled through presidential wartime authorities, including the Defense Production Act, a Cold War-era law that allows the government to direct resources into industries deemed essential for national security.
Speaking at the White House on Thursday, Trump framed the initiative as part of a broader effort to bring down energy costs amid rising global prices. “We’re taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal,” he said.
The plan includes $500 million to support 14 existing coal plants and the development of a new export terminal in California. A further $200 million will be allocated through the Department of Energy to construct two new coal plants in Alaska and West Virginia, marking the first such developments in the United States since 2013. Additional investments will support coalmines across 10 states, including Kentucky, Indiana, North Carolina, Tennessee, Arizona and Oklahoma.
According to the administration, the package will help preserve 42 coalmines and support the construction of new infrastructure intended to expand both domestic supply and exports. Officials estimate the broader initiative could generate around 14,000 jobs, including more than 1,400 positions tied to the planned export terminal in Oakland.
Trump said the initiative would also reduce long-term energy costs, claiming it could save American consumers up to $50 billion in future electricity generation expenses. He criticised countries that have shifted toward renewable energy, arguing that coal remains a foundation of economic strength.
The announcement comes at a time of heightened pressure on global energy markets following the conflict with Iran and disruptions to the Strait of Hormuz, a key route for oil and gas shipments. The conflict has contributed to rising fuel prices in the United States, where the average price of petrol reached $4.24 per gallon on Thursday, according to AAA data, compared with $2.98 before the escalation in Middle East tensions.
US energy prices have also risen sharply in recent months. Bureau of Labor Statistics figures show overall energy costs increased by 17.9% in the year to April, adding to inflationary pressures on households.
Administration officials argue that expanding coal production will help stabilise supply and reduce dependence on volatile international energy markets. Critics, however, have long warned about environmental and long-term economic risks associated with increased reliance on fossil fuels.
The announcement signals a renewed federal push toward traditional energy sources at a time of ongoing debate over the future of US energy policy and climate commitments.
