U.S. President Donald Trump is preparing to invoke the Defense Production Act to send nearly $700 million to support coal plants, reported Reuters, citing a White House official. The 1950 law grants presidents wide authority over national security-related industries.
Of the $700 million, more than half will fund 13 coal plant upgrades; $185 million will match corporate funds for coal facilities in Alaska, Maryland and West Virginia; and $75 million will support the long-proposed West Gateway export terminal in Northern California.
“Coal generation shields consumers from the impacts of volatile energy prices and supply challenges; it’s a vital piece of a sound energy strategy designed to meet the challenge of today’s AI-driven demand growth in the context of the conflict in the Middle East,” explained National Mining Association President Rich Nolan.
“The administration is supporting that strategy with decisive action at home to ensure that upgrades to existing energy assets are made, and at our ports to ensure that U.S. coal can answer the world’s needs.”
Coal once accounted for more than half of U.S. electricity generation, but fell to less than one-fifth in recent years, according to the U.S. Energy Information Administration.