Trump Launches $700 Million Infrastructure Initiative for Coal

President Donald Trump has announced a substantial federal infrastructure package valued at $700 million aimed at modernizing coal plants across the country and establishing new coal-fired facilities, the first of their kind in over a decade.

This significant intervention, revealed on Thursday, utilizes the 1950 Defense Production Act, which allows the administration to subsidize directly 13 existing plants located in 10 states. The strategy involves combining these funds with grants from the Department of Energy to initiate the construction of new facilities in Alaska and West Virginia, effectively ending a lengthy period without new domestic coal plant development.

“Today, 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,” Trump stated from the Oval Office during the announcement. He also mentioned the failures of countries relying on wind energy.

Trump has been a long-time proponent of boosting domestic fossil fuel production. Since he returned to office in 2025, there has been a noticeable push to advance oil, gas, and mining projects, as well as to facilitate more drilling. Additionally, the administration has extended the operational lives of various fossil-fuel power plants beyond their originally planned retirement dates in states like Michigan, Indiana, Colorado, and Washington.

This announcement arrives amid a decline in coal power usage in the U.S. since its peak in 2007, largely due to market shifts favoring more affordable natural gas and renewable energy sources, with coal now accounting for less than one-fifth of the nation’s electricity production.

“Thanks to the $700 million investment I’m announcing today, we will preserve 14 coal plants and 42 coal mines — and that’s a huge number — plus construct two new coal plants and a significant new export terminal for coal,” Trump stressed.

According to data from the White House, the allocation of the $700 million investment is organized into three tiers:

• $425 million designated for Defense Production Act funds to upgrade infrastructure in 10 states, including West Virginia, Kentucky, and Indiana.
• $200 million in Department of Energy grants aimed at funding the construction of two new regional plants and rejuvenating an inactive facility in Maryland.
• $75 million to commence the contentious development of a maritime coal export terminal in Oakland, California, with plans for it to become operational by summer 2028.