- President Donald Trump is using Cold War‑era emergency powers to steer roughly $425 million toward upgrades of 13 coal‑fired power plants and $75 million for the proposed West Gateway export terminal in Oakland, California.
- The Energy Department will also finalise up to $350 million in previously announced funding for four new coal facilities in Alaska and West Virginia.
- Administration officials frame the spending as necessary to ensure reliable electricity for AI data centres and to reduce reliance on foreign fuel suppliers.
Facing an energy crunch caused by the Iran war and growing demand from artificial intelligence data centres, the Trump administration has dusted off the Defense Production Act (DPA) to pump hundreds of millions of dollars into the US coal industry.
A White House announcement on 4 June said $425 million will be spent to upgrade 13 existing coal plants to improve reliability and efficiency. Another $75 million will go toward the West Gateway coal export terminal in California, aimed at boosting shipments to Asian markets.
The plan forms part of a broader $700 million package to shore up US coal. The Department of Energy will also finalise $350 million to help develop four coal facilities, including new plants in Alaska and West Virginia.
Republican governors and mining industry executives joined Trump at the Oval Office to celebrate what he called support for “clean, beautiful coal”. Wyoming governor Mark Gordon argued that Asian partners are “hungry for coal” to power their own AI initiatives.
The administration justifies the spending on national security grounds, saying AI data centres require baseload electricity that coal can provide. Critics, however, say the DPA is being abused to prop up a declining industry.
Environmental groups warn that coal combustion is linked to heart and lung disease, and the Sierra Club plans to challenge the subsidies in court. Coal’s share of US electricity generation has fallen from more than 50% in 1990 to less than 20% today as utilities switch to cheaper gas and renewables. Analysts note that while the DPA can accelerate procurement, it cannot reverse market trends.
The move signals increasing ideological divergence: while the UK is phasing out coal and investing in renewables, the US under Trump is doubling down on fossil fuels.
The subsidies could marginally increase US coal exports, potentially influencing global prices and reinforcing calls for trade measures to account for carbon intensity. It also highlights how energy security concerns and AI‑driven demand are prompting some governments to prioritise fossil fuel reliability over decarbonisation.
