President Trump on Thursday invoked the Defense Production Act to provide $700 million in grants to more than a dozen coal-fired power plants, the latest in a series of executive moves aimed at propping up a sector that has been in steep decline for decades, according to a White House announcement.
The Defense Production Act, a Cold War-era statute originally enacted to accelerate domestic industrial output during times of national security need, grants the president broad authority to direct resources and spending. The grants will target existing coal plants across the country, including facilities with coal export capacity.
The White House event brought together governors and lawmakers from coal-producing states including Wyoming and West Virginia to endorse the order. The president, who has long championed the revival of the U.S. coal industry, described the sector in familiar terms.
“I have a little standing order in the White House — never use the word ‘coal,’” Trump said, referencing a comment he made at the United Nations last year. “Only use the words ‘clean, beautiful coal.’”
The administration has pursued a sweeping rebranding campaign around the fuel, including the creation of a new mascot named Coalie, complete with oversized eyes, and social media posts depicting a lump of coal wearing sunglasses.
Coal is the most carbon-dense fossil fuel. When burned, it releases a concentrated volume of carbon dioxide relative to its energy output, making it a leading contributor to the climate crisis. Coal combustion also emits microscopic toxic particles — including mercury, sulfur dioxide, and particulate matter — that trigger respiratory and cardiovascular illness among nearby populations. Research has estimated that as many as 460,000 deaths in the United States between 1999 and 2020 were attributable to air pollution from coal-fired plants alone.
Environmental advocates condemned the latest round of federal spending on the industry.
“It is disgusting and reprehensible that the president of the United States is giving away our taxpayer dollars to deadly and expensive coal plants that will make Americans sicker and drive up electricity prices even more,” said Patrick Drupp, climate policy director of the Sierra Club. “This handout betrays everything Donald Trump promised and only serves his big coal buddies who stroke his ego and hand him shiny trophies.”
The grants follow a year of escalating federal support for coal. The Trump administration has disbursed hundreds of millions of dollars to the sector through various channels, signed executive orders forcing electricity ratepayers to subsidize aging coal plants that would otherwise retire, and systematically dismantled environmental regulations that limit coal-related toxins from entering shared air and water supplies.
The administration’s support for coal comes as the sector’s economic footprint continues to shrink. U.S. coal production is currently less than half of what it was in 2008, and the number of people employed in coal mining has declined by more than 90 percent over the past century. More workers are now employed at Waffle House restaurants across the country than in the entire coal mining industry.
Cheap natural gas and rapidly expanding renewable energy capacity have displaced coal from the power grid. Even as the administration has moved to suppress solar and wind development, cheaper renewables have continued to gain market share.
“What’s next, a taxpayer bailout to build new phone booths?” said Kit Kennedy, a senior climate campaigner at the Natural Resources Defense Council. “This is going to mean higher bills and dirtier air. What a waste. Propping up coal billionaires with taxpayer money is one more way for the Trump administration to put polluters first and put the rest of us at risk. The best thing for the air, the climate and our utility bills is to let these plants retire peacefully.”
Industry leaders welcomed the order. Rich Nolan, chief executive of the National Mining Association, argued that increased coal generation would help the United States meet a historic spike in electricity demand driven by the rapid expansion of the artificial intelligence sector.
“Coal generation shields consumers from the impacts of volatile energy prices and supply challenges,” Nolan said, adding that coal offered 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.”